textile industry case study

Textile IndustryUnresolved Conflicts

Copyright © 2015 Vector Consulting Group. All rights reserved.

A typical company in the Indian textiles and garment industry deals with following chronic conflicts

and pays significant late penalty charges, despite having excess plant capacity

Suffers from poor on-time delivery performance

(less than 70%)

despite having tried many scheduling systems to solve the problem

Dispatch predictability is

very low


while others are grossly delayed

Some orders (or part of an order) gets completed much ahead of actual requirement


Rework is a perennial problem despite having quality systems in place.

There is continual pressure to add workers even though the plant overall has more

than required.

?


Some organizations in Indian textile and garments manufacturing sector have resolved the chronic operational conflicts and created a harmonious supply chain where plants are able to not only cut down lead time but also improve utilizations and on-time performance.

Case Studies1. Pratibha Syntex Ltd.

2. Raymond Zambaiti


Pratibha Syntex Ltd.Largest vertically integrated textile manufacturers in India with its value chain spanning from fiber to fabric to garments.

The business networks with around 30,000 farmers, 10,000 employees and renowned global apparel brands in more than 20 countries.

Three major business units: Spinning (240crores), Fabric (25 crores) and Garmenting (425 crores).

The products include T-shirts, undergarments, high fashion garments and recycled textile products.

Results in last 7 monthsPratibha Syntex Ltd.

27%

The AverageLead-time from Fabric

Knitting to Packing of a Sales order has reduced by

On time in full delivery

(OTIF) to Customer has improved by 80% and Order to ship has increased from 97%

to more than 100%.

The Total inventory of

garmenting unit is reduced by 18%. The Inventory of Finished

Garments has reduced by

26%.

The Garment EBIDTA has

increased by 55% through Increased

Sales.


Raymond Zambaiti Ltd.Produces Exclusive cotton shirting & bottom weight fabrics.

Supplies its creations to leading shirt brands world over.

Manufacturing facility based in Kolhapur has an installed capacity of 21.6 million meters annually.

ResultsRaymond Zambaiti Ltd.

50% reduction (15 days to 7 days) in

assortment waiting time at company warehouse has been achieved because of improved synchronization and flow. This reduction also results to improved

cash to cash cycle.

On time delivery

performance (at SO level) has been improved

to 95%.

Production lead-time is

reduced by 25% (from 45/50 days

to 33 days) at SO level.

textile industry case study

Business