Welcome To A One Day Workshop On

Production Planning & Control In Apparel Manufacturing

Jointly Organized By SMEDA, UNDP & PRGMEA Tuesday 04th August 2009 At PRGTTI Karachi

PRODUCTION PLANNING AND CONTROL

WHAT IS PRODUCTION PLANNING?

An industry person may answer this question the following way. If the factory has been producing 1000 garments per/ day and if an order comes in for 10,000 units, it would take : 10,000 / 10 = 10 days to execute the order . Hence , one can plan their factory production as per above formulation.

PRODUCTION PLANNING AND CONTROL

ENGINEERED METHOD :
The same be answered differently if asked to a garment engineer. Understanding that garment sewing business require extensive manpower , the huge force has to be precisely utilized not to loose the value of minutes. To understand the impact that if a factory has 100 machine and every operator loss time is only 30 minutes in a day , the production time loss can immensely effect the factory output. The % of loss time would be: 3o Mins / 480 Mins work time = 6.25 % that means we may not be wrong by assuming that 6.25% production loss is being sustained.

APPAREL ENGINEERING CONCEPTS

This workshop consist of learning apparel engineering methods to plan production. Following topics are part of the learning methods and practical examples in class exercise will be demonstrated to assure that concepts do work for the betterment.

Method study Method Improvement Time Study Idle Time Creative Production Planning Factory Production Capacity Special Machine Production Capacity

APPAREL ENGINEERING CONCEPTS

METHOD STUDY
The in depth monitoring and analysis of the way an operator performs its task is called method study.

METHOD IMPROVEMENT
Once the method study is done , one looks for better ways to save time and less effort by the operator . this could be done by improving work motions / provide work aids like gauges , folders , attachments , trolleys , movers , tracks or machine automation.

APPAREL ENGINEERING CONCEPTS

TIME STUDY
The recording of time of every motion conducted by the operator is termed as time study. Once the time is recorded , allowances for fatigue, machine delays , personal breaks and various times are integrated into the pure time to derive real time. This time is termed as SAM ( Standard Allowed Minutes) of SMV ( Standard Minute Value ).

APPAREL ENGINEERING CONCEPTS

IDLE TIME
During the course of production , it is observed that operators are idle and wait for production buildup to make them go into motion . this idle time is loss of time and production.

CREATIVE PRODUCTION PLANNING

Creative production planning is use of various techniques to assure that idle time is less or eliminated . more production in less time is key to success for any manufacturing plant.

APPAREL ENGINEERING CONCEPTS

FACTORY PRODUCTION CAPACITY
Factory production capacity is derived from the resources available at the manufacturing plant . It is calculated simply by the amount of machines available and hours per day determined to work to be realistic ,one has to determine the efficiency level of the operators and incorporate the percentage to derive actual capacity. Example : if a factory has 100 machines and working hours are 8 hours per day and 26 days per month . the efficiency level of operators is observed to be at 80% . the production capacity available time per month would be calculated as below : Available monthly production time capacity : 100 machines x 480 Mins x 80 / 100 = 38400 Mins / day. 38400 Mins x 26 days = 998400 Mins /month or 16640 hours/month.

APPAREL ENGINEERING CONCEPTS

SPECIAL MACHINE PRODUCTION CAPACITY
Once planning production , it has to be known that if any special operation is required within the garment which require special machine or machines . if so , the output capacity for those garments have to based upon special machine production . the management can then decide if those machines be worked overtime or if required to meet shipment date , additional machines be purchased . To calculate special machine capacity per month , the available machines are 10 , work hours /day are 8 hours , efficiency level is 80% and working days per month is 26 days. Special production capacity in time / month = 10 machines x 480 Mins x 80 / 100 = 3840 Mins / day 3840 Mins x 26 days = 99840 Mins / month or 1664 hours /month.

DEFINATIONS RELATED TO PRODUCTION CAPACITY AND PLANNING.

MAXIMUM CAPACITY:
Total hours available under normal conditions in a given period of time.

POTENTIAL CAPACITY:
Maximum capacity adjusted for efficiency.

COMMITED CAPACITY:
Total hours previously allocated for production during a certain time period.

DEFINATIONS RELATED TO PRODUCTION CAPACITY AND PLANNING.

AVAILABLE CAPACITY :
Difference between potential capacity and committed capacity for a certain time period .

REQUIRED CAPACITY :
Sam or SAH necessary to produce a specified volume in a certain time period .

EXCESS CAPACITY :
Difference between potential capacity and required capacity .

EXERCISE TO UNDERSTAND RELATIONSHIP OF CAPACITY TERMS.

Lets say united garments company has 10 operators who work 8 hours a day. The plant has 90% efficiency level. A customer brings in order for 6000 units of style a that needs to be delivered in 10 days . the plant already has a committed capacity of 300 hours for the 10 days period.
It was established that style a has a production time of 5 SAM. The order of 6000 units require 30,000 SAM ( 500 hours ). What factors should be considered in deciding whether to accept the order or refuse?

What is the potential capacity of united garments company for the 10 working days ?
Ans. 10 machines x 7 hours /day = 70 hours/day x 90% efficiency = 63 potential
production hours /day. Potential capacity for 10 days = 10 days x 63 hours = 630 hours potential capacity.

What is required capacity for the 6000 unit order ?

Ans. 5 SAM /unit x 6000 units = 30,000 SAM or 500 SAH to complete the order.
Capacity required = 500 hours.

What is available capacity in the plant currently ?

Ans. Available capacity = potential capacity committed capacity
Available capacity = 630 hours 300 hours = 330 hours available

Is available capacity adequate to accept the order ?

Ans. 330 hours of available capacity 500 hours orf required capacity = -170 hours
Capacity is not sufficient to accept order .

WHAT ADJUSTMENT HAS TO BE MADE TO ACCOMMODATE THE ORDER IN HAND ?

Require more time from buyer to accommodate the 170 hours . Work overtime to cover the 170 hours. Increase more machines and operators . Find way to increase efficiency level to 100 % . Use creative production technique to increase productivity . Try to eliminate idle time within production to decrease throughput time .
Assess the performance of individual operators.

PRODUCTION PLANNING CHART APPAREL

Month : July 2009. Plant : A Potential capacity/day : 50 machine x 8 hrs x 90 % = 360hrs. Potential capacity / month : 360 hrs x 26 days = 9360 hrs . Special machine capacity : Welt Pkt. 2 machine x 800 Pcs/day= 1600 Pcs./day. Special machine capacity / month = 1600 x 26 = 41,600 Pcs .

DATE
01-Jul

BUYER
J.C.P.

P.O. #
2442

ITEM
L.S. TOP

QTY
2000

SAM / UNIT
12 SAM

TOTAL SAH
400

AVAIL SAH
8960

02-Jul
04-Jul

SEARS
GAP

1123
G-07

S.S. TUNIC
BLOUSE

4000
12,000

10 SAM
15 SAM

667
3000

8293
5293

15-Jul
17-Jul

JCP
SEARS

2443
1124

L.S. DRESS
S.S TUNIC

15,000
4000

20 SAM
10 SAM

5000
667

293
-374

PRODUCTION PLANNING CHART HOME TEXTILE

MONTH : JULY 2009. PLANT : A POTENTIAL CAPACITY/DAY : 50 MACHINE X 8 HRS X 90 % = 360HRS. POTENTIAL CAPACITY / MONTH : 360 HRS X 26 DAYS = 9360 HRS . SPECIAL MACHINE CAPACITY : A - ELASTIC ATTACH 4 MACHINE X 800 PCS/DAY= 3200 PCS/DAY. ELASTIC FITTED SHEET CAPACITY / MONTH = 3200 X 26 = 83,200 PCS . B- FRILL ATTACH 4 MACHINE X 300 B.S PCS/DAY = 1200 B.S/DAY. FRILL ATTACH B.S CAPACITY /MONTH = 31,200 PCS.

DATE 01/07

BUYER J.C.P.

P.O. # 2442

ITEM # 1 B.S.

QTY 2000 10

SAM / UNIT

TOTAL SAH 334

02/07
04/07 15/07 17/07

SEARS
J.C.P. JCP SEAR

1123
G-07 2443 1124

B.S
FR.B Q.C CUSH

4000
3000 6000 3000

10
20 15 20

667
1000 1500 1000

ITEM-2

QTY

SAM

SAH

ITEM-3

QTY

SAM

SA H

ORDER SAH

AVAIL SAH

Fitted

2000

10

334

Pc

3000

250

928

8432

Fitted

4000

10

667

Pc

6000

500

1834

6598

Fr.Fit

3000

20

1000

Fr.Pc.

5000

10

833

2833

3765

Sham -

8000 -

10 -

1333 -

2833 1000

932 -68

PRODUCTION STANDARDS ARE USED IN PRODUCTION PLANNING TO DO THE FOLLOWING :

Estimate the rate or time for completion of each operation. Determine the required capacity for an order or style. Determine the production start dates and completion dates for orders. Plan the daily volume that should have been completed. Determine the backup inventory needed to support the work flow. Determine how many operaqtors and machines should be performing on each operation. Schedule specialized equipment . Monitor daily production delays.

QUIZ
QUESTION ONE.
Plant capacity is :
A projection of the total hours available for production in a given time period. Number of garments a plant can produce in a certain time period Number of machines available to meet the capacity of orders

Committed capacity is :
The orders which P.O. Still not received Orders waiting for confirmation Total hours previously allocated for production in certain time

Available capacity is :
The volume which can be still produced in a plant The styles which orders can be taken and ship on time The difference between plant capacity and committed capacity for a certain time period

If a garment has Sam = 6 min . the plant capacity is 4800 min/day . efficiency of plant at 100% . how many days will it take to produce 12000 garments ? how many machines does the plant own ?
10 days . 10 machines 2.5 days . 20 machines 5 days . 40 machines 15 days . 10 machines

QUIZ
QUESTION TWO . What will be plant potential capacity ? If the plant has: 125 machines 6 working hours / day 5 working days / week Efficiency level 80% Answer : Plant capacity / day:_____________________ Plant capacity / week:____________________

QUESTION THREE. What will be the required order capacity ? If the order details are : Order quantity : 30,000 garments Sam / garment = 15 Mins Answer : Required capacity total hours :______________________ Days required to complete order:___________________

QUESTION FOUR GARMENT BREAKDOWN SHEET

Product description :
Fleece top L/S with neck band / cuff & w. Band all sewn on over lock machines.

Fill in blanks. 8 hours work time /day. 26days/month. 100% efficiency.

Op no 1 2 3 4 5 6 Operation Join shoulder Close/set n.Band Set sleeve Close side Close/set cuff Close/set w.Ban Sam 2.00 4.00 3.00 1.50 2.50 3.00 Prod/day Machine type Machine qty

Answer: A- Total Sam/garment:________________________________________ B-Total machines required to produce 320 garments/day? _______________ C-How many days required to produce 2880 garments? _________________ D- how many machines required to produce 24,000 in 20 days? ______________

SEGREGATING INDIRECT LABOR CREW NECK TOP

NEW SAM

OP#

OPERATION

SAM

PROD/DAY

EQUIP

T.EQUIP

N.PROD

N.EQP

1-

JOIN SHLD JOIN/TU RN/SET COL S. SLV/CLS SIDE JOIN/TURN/ S. CUFFS JOIN/TURN/ S.W.BA ND

0.34

1411

O/L

0.34 0.0. 37= 1.27 1.5 -0.50= 2.28

1411

23-

1.647 1.5

291 320

O/L O/L

4 3

378 320

3 3

4-

2.78

172

O/L

210

5-

2.3 8.567

208 1000

O/L ----

5 -

-0.40= 1.90 19

253 7.290

4 16

TOTAL SAM =

Equipment requirement : O/L = 19

Production output target = 1000 units per day. Indirect labor:

Operation

SAM

Prod/day

Manpower Req.

1-Turn cuff(2) 0.50 960 1 2-Turn Col 0.37 1297 1 3-Turn W Band 0. 40 1200 1 Productivity increase: 8.567 7.290 = 1.277 / 8.567 = 15 % Separating indirect labor resulted into : 15% productivity increase. 1000+150 = 1150 output 19 machines-16 machines = 3 less machines Indirect labor cost the operator cost saved. 3 machines less inline . less space. 3 less machine . machine cost saved.

Quiz . ( Answer Sheet )

Question one.

Plant capacity is :
Projection of the total hours available for production in a given time period. Number of garments a plant can produce in a certain time period Number of machines available to meet the capacity of orders

Committed capacity is :
The orders which P.O. Still not received Orders waiting for confirmation Total hours previously allocated for production in certain time

Available capacity is :
The volume which can be still produced in a plant The styles which orders can be taken and ship on time The difference between plant capacity and committed capacity for a certain time period

If a garment has Sam = 6 min . the plant capacity is 4800 min/day . efficiency of plant at 100% . how many days will it take to produce 12000 garments ? how many machines does the plant own ?
10 days . 10 machines 2.5 days . 20 machines 5 days . 40 machines 15 days . 10 machines

QUESTION TWO .

WHAT WILL BE PLANT POTENTIAL CAPACITY IN SAHS ? IF THE PLANT HAS: 125 MACHINES 6 WORKING HOURS / DAY 5 WORKING DAYS / WEEK EFFICIENCY LEVEL 80% PLANT CAPACITY / DAY:_125 X 6HR X80%= 600 HRS PLANT CAPACITY / WEEK: 600 HRS X 5 = 3000 HRS

ANSWER :

QUESTION THREE.

WHAT WILL BE THE REQUIRED ORDER CAPACITY ? IF THE ORDER DETAILS ARE ORDER QUANTITY : 30,000 GARMENTS SAM / GARMENT = 15 MINS
ANSWER : REQUIRED CAPACITY TOTAL HOURS : 30,000 X 15 SAM/PC / 60 = 7500 HRS DAYS REQUIRED TO COMPLETE ORDER: 7500 HRS -------------= 12.5 DAYS 600 HRS/DAY

Question four. Garment breakdown sheet Product description : Fleece top L/S with neck band / cuff & w. Band all sewn on over lock machines. Fill in blanks. 8 hours work time /day. 26days/month. 100% efficiency. Op No Operation Sam Prod/day Machine Type Machine Qty 1 Join Shld 3.00 160 O/L 2 2 Close/set n.Band 4.50 106 O/L 3 3 Set sleeve 3.00 160 O/L 2 4 Close side 1.50 320 O/L 1 5 Close/set cuff 6.00 80 O/L 4 6 Close/set w.Band 3.00 160 O/L 2 Answer: A- Total Sam / garment : 16 Sam B- Total machines required to produce 320 garments/day ? 14 machines C- How many days required to produce 2880 garments ? 2880 / 320pcs/day= 9 days D-How many machines required to produce 24,000 in 20 days ? ? 24,000 / 20 days = 1200 units Req./day. 1200 units x 16 Sam = 19200 Sam/ 480mins= 40 machine

CASE STUDY FOR PRODUCTIVITY INCREASE

Production Growth Against Productivity Growth.
What Is Production ?
Production Output Is Quantity Derived From Utilization Of Machine And Manpower Effort In A Specified Given Time.

Production / Day = Units Produced By Worker/Hr X No Of Machines X 8 Hours

Example: If A Factory Has 50 Machines And Work 8 Hours /Day . The Output By Each Operator Is 20 / Hour . Production / DAY WILL BE = 20 X 50 X 8 = 8000 UNITS / DAY.

CASE STUDY FOR PRODUCTIVITY INCREASE How Can We Increase Production ?

Our math's tells us that any factors involved, if increased will result higher output. That mean if we work 10 hours instead of 8 , the production will increase. If we increase machine and manpower , it will result in output increase.
Example. If We Work 2 Hours Extra , The Output Would Increase. Production / Day = 20 X 50 X 10 = 10,000 Units / Day

CASE STUDY FOR PRODUCTIVITY INCREASE What Is Productivity ?

Productivity Is Increase In Efficiency To Derive Higher Output. That Mean The Resources And Time Is To Be Maintained Constant And Manpower Efforts Need To Be Increased To Get Better Yield. Example : Lets Take The Above Case. If A Factory Has 50 Machines And Work 8 Hours /Day .The Output By Each Operator Is 20 / Hour . The Production Output Calculated = 8000 Units / Day If We Set Target That We Want The Productivity To Be Increased By 10 % Through Human Efforts. Productivity Increase / Operator = 20 Units / Hr X 10%= 22units/Hr Productivity Output = 22 X 50 X 8 = 8800 Units / Day.

APPROACH TOOLS TO IMPROVE PRODUCTIVITY

Work Study Method Improvement Technology Application . Tools And Aids. Feed Supply Work Flow / Machine Set Up . Material Handling . Time Study Follow Up Study Hourly Reporting Motivation Psychologically Motivation Monetarily.

CASE STUDY
A company called blue grass industries in Kentucky , USA was producing Men's turtle neck pullovers in Velor fabric for sears catalog . The company had 280 machines in production and was producing approximately 15,000 units per day. At the time of my visit , the prevailing Sam / unit was established as follows :
Op#
123456-

Operation
Sew neck label Join shoulder Join/turn/set collar Set slv/close side Join/turn/set cuffs Join/turn/set w.Band

Sam
0.313 0.340 1.647 1.500 2.780 2.300

Prod/day
1534 1411 291 320 172 208

Equip
S/n O/l O/l O/l O/l O/l

Total Equip
1 x10= 10 1x10= 10 5x10=50 5x10=50 9x10=90 7x10=70

Total Sam = 8.880 1534 Equipment requirement : S/N = 10 O/l = 270 Total = 280 Production output target = 15,000 units per day.

-----

28x10=280

WORK STUDY OUTCOME:

A work study was conducted by me and method improvement was suggested to increase productivity findings and suggestions are listed below As per rule , work which require technical or trained skilled labor should be utilized to its optimum potential. Based on this theory , i observed that operators attaching collar, cuff and waist band were being asked to perform work which did not require highly skilled labor. The operation to turn inside out collar , cuffs and waist band could be categorized as indirect labor and can be performed as a separate operation .

The segregation of indirect labor from direct labor would improve operator productivity and less machines would be required to meet the designated target.
Due to less machine requirement , less work space would be required in production line . investment in machine would also be a saving to the company.

WORK STUDY OUTCOME:

It was suggested that a separate table for workers at a minimum wage could be hired to perform the clip / turn and stack operation. It was suggested that operators would be deputed to join cuff / collar and waistband and leave in a chain form.

Turner crew would clip . turn and stack ready for operator to attach on to the garment.
Time study results were as follows :

Collar clip / turn & stack Sam = 0.085 + 0.315 = 0.400 Cuffs (2) clip / turn & stack Sam =0.333+ 0.934 = 1.267 W.Band clip / turn & stack Sam = 0.117 + 0.583 = 0.700

RESULTS:
After Application Of The Logical Theory , The Final Results Were Alarming !!!!!!

The Set Up Operation Was Implemented As Below :

Op# Operation 1234567Sew Neck Label Join Cuff/Col/W.Band Join Shoulder Set Collar Set Slv/Close Side Set Cuffs Set Waistband Sam 0.313 0.978 0.340 1.247 1.500 1.513 1.600 Prod/Day 1534 490 1411 385 320 317 300 Equip S/N O/L O/L O/L O/L O/L O/L ----Total Equip 1 X10= 10 3x10= 30 1x10= 10 4x10=40 5x10=50 5x10=50 5x10=50 21x10=240

Total Sam = 7.491 1534 Equipment Requirement : S/N = 10 O/L = 230 Total = 240

DIRECT LABOR FORCE REQUIRED AT MINIMUM WAGE

COLLAR CLIP/TURN W.BAND CLIP/TURN CUFF CLIP/TURN 0.400 0.700 1.267 1200 686 379 LABOR LABOR LABOR 1.28X10=13 2.24X10=23 4X10=40

TOTAL SAM

2.367

1500

---------

76

TOTAL INDIRECT LABOR = 76 PRODUCTION OUTPUT TARGET = 15,000 UNITS PER DAY.

Test
Question One : If The Factory Continue Using 280 Machines In Production , What Would Be The Output With New Sam Derived ? Answer ; ______________________ Units/Day Question Two : In The Above Case In Q-1 , How Much Indirect Labor Would Be Required With 280 Machines In Production ? Answer :__________________ Labor Force Question Three : If Minimum Wage /Hour Is $ 4.00 . What Be The Labor Cost Per Garment ? Answer : $____________ / Garment

Test
Question Four : If The Operator Wage Is $8.00/Hour , Calculate : Total Cost Of Garment At Time When No Improvement Was Executed. Answer : $____________ / Garment

Cost Of Garment After Improvement Including Direct & Indirect Labor . 8 Hour / Day Work Time.
Answer : $_____________ / Garment Question Five :

In The Above Case Study , Calculate Following Comparing Before And After Method Improvement . Productivity Increase % = ____________________ % Cost Savings / Garment In Dollars = $________________ . % Savings In Dollars =___________________ %

Answers
Test Paper Answers : Question One: Total Machine = 280 New Sam = 7.491 Production Minutes Available = Machine X 480 Min = 280x480=1,34,400 Production Output= Available Mins = 1,34,400 = 17,942 Units/Day Sam 7.491

Question Two : New Output = 17,942 Units Labor Sam = 2.367 Production Output = Available Mins (Laborx480) Sam Labor Req = Output X Sam = 17,942 X 2.367 = 88.48 Labor/Day 480 480 = 89 Labor / Day Question Three : Labor Wage / Hour = $ 4.00 Wage / Min = 0.066 Labor Sam = 2.367 Cost Of Labor /Garment = Sam X Cost /Min = 2.367 X 0.0666 = $ 0.1576 / Garment = $ 0.16 / Garment

Question Four:
Operator Wage / Hour = $ 8.00 Operator Wage/Min = $ 0.1333 Cost / Garment = Cost / Min X Sam / Garment = $0.1333 X 8.88 = $ 1.184 / Garment Operator Wage / Min = $0.1333 Labor Wage / Min = $ 0.0666 Cost Of Labor = Sam X Wage / Min = 2.367 X 0.0666 = $ 0.16 Cost Of Operator = Sam X Wage / Min = 7.491 X 0.1333 = $ 0.998 Total Cost / Garment = $ 1.158

Question Five:
A- % Productivity Increase = New Output Previous Output X 100 Previous Output = 17,942 - 15,000 X 100 = 19.61 % 15,000 B-cost Savings/ Garment = Previous Cost New Cost = $ 1.184 - $ 1.158 = $ 0. 026 / Garment C- % Savings In Dollar = Cost Savings / Garment Previous Cost/Garment = $ 0.026 = 2.19 % $ 1.184