CLUSTER REPORT

CLUSTER REPORT 20151/1/2015

LIST OF CONTENTACKNOWLEDGEMENT. iEXECUTIVE SUMMARY.iiCHAPTER 1: INTRODUCTION: OBJECTIVE AND METHODOLOGY OF THE CLUSTER SURVEY..................................................................1.1 Background Study1.2 Objectives1.3 MethodologyCHAPTER 2: LITERATURE REVIEW2.1 BIAC.2.2 Volta Fashions Pvt. Ltd..CHAPTER 3: PRIMARY DATAANALYSIS3.1 The Observation..3.1.1 BIAC3.1.2 Operational Units3.1.3 Supply Chain Management3.1.4 Challenges in the Supply Chain.3.1.5 APAC

3.2 The Interview/ Recordings3.2.1 Production Unit 13.2.2 Production unit 23.2.3 Lean Process

3.3 The Apparel Cluster Survey.3.3.1 Infrastructure3.3.2 Employment and Training..3.3.3 Sourcing3.3.4 Operation unit output and Innovative Technology..3.3.5 Productivity Efficiency of Machines3.3.6 Supply Chain Management and Related Problems..3.3.7 Retail OutletCHAPTER 4: SUGGESTIONS AND RECOMMENDATIONS...CHAPTER 5: LEARNINGS

ACKNOWLEDGEMENT:

EXECUTIVE SUMMARY:

CHAPTER 1: INTRODUCTION; OBJECTIVE AND METHODOLOGY OF THE CLUSTER SURVEY1.1 Background Study1.2 Objectives 1. To understand the basic functioning of how apparel park(Brandix and Voltas fashion) work , process in general2. To understand the various functions and the manufacturing process of both the companies 1.3 Methodology and data collection The primary objective of doing this project is to get the first-hand knowledge ofFunctioning Brandix and Voltas Fashion. As we were learning the manufacturing procedure. Henceexploratory research design is the need of the hour.Research DesignIn Primary data, Qualitative research through In-Depth Interviews & observation has beenadopted. Interviews, Recordings were taken through survey forms and in-depth discussion with the companys employees.In Secondary data, both internal & external research was done. For internal researchReady to use documents available with the organization were used. (Company manuals,GE video)For external research Internet website & published book, annual report wereConsulted.1.4 Scope and limitation -The aim of this project report is to unfold stepwise all process and complexities involved in Brandix and Voltas Fashion.It gives a detail idea of how different departments in an Apparel export house (BRANDIX) work insynchronization so that an export order is processed.It also gives the process knowledge of Apparel park (VOLTAS FASHION)Time constraint in terms of visiting the parks and regional language used.

CHAPTER 2: LITERATURE REVIEW2.1 BIAC:Brandix India Apparel City (BIAC) is a revolutionary development in the apparel industry; a unique, integrated apparel supply chain city, managed by Brandix Lanka Ltd. Spread over 1000 acres in the port city of Visakhapatnam (or Vizag for short) in the eastern state of Andhra Pradesh, it brings alive an Avant garde 'Fiber to Store' concept. BIAC will bring together world class apparel chain partners from the design table to consumer brands in flawless integration.Honble Chief Minister of Andhra Pradesh, Mr. Konijeti Rosaiah inaugurated Brandix India Apparel City (BIAC), on May 3rd 2010, which is located within the Andhra Pradesh Special Economic Zone (APSEZ) in Visakhapatnam at a grand ceremony. Honble Chief Minister of Andhra Pradesh, Mr. K. Rosaiah on the event of the Inauguration of Brandix India Apparel City said, Brandix India Apparel City is one of the largest textile industry-specific special economic zones in the world, and the only one of its scale and concept in South Asia

"I congratulate the Management of BIAC for developing this Park, which will drive the Industrial development of the State. BIAC, from its side has stood by its promise of providing jobs to the villagers. So far, at BIAC, the factories operating within it have provided over 5,075 jobs to the rural people mostly girls, and when the Park is occupied fully, about 60,000 jobs should be available. Government has also supported them by providing land and excellent infrastructure to allow a smooth flow in their operations.The Government of Andhra Pradesh and Brandix has established this textile and apparel Park under the Scheme for Integrated Textile Parks (SITP) Government of India

Supported by an MOU with the Government of Andhra Pradesh. Approved under Government of Indias Textiles Ministry: Scheme for Integrated Textile Parks Granted Special Economic Zone status by Commerce Ministry, Government of India.

BIAC VISION Be the preferred global sourcing hub for apparel

Conceived and nurtured by Brandix, Sri Lanka's largest apparel exporter, BIAC hightlights India's phenomenal synergies in the world of textiles. To leverage India's immense potential for economies of scale and other robust business fundamentals in its fast growing economy, Brandix brings 30 years of industry expertise and invites other world class experts to join its value chain to enjoy assured mutual benefits of investment.The apparel park will be managed by a special purpose vehicle (SPV) named Brandix India Apparel City that is promoted by Sri Lanka- based exporter Brandix, Lanka among other global textile and apparel manufacturers

Brandix India Apparel City has been established under the governments scheme for integrated textile parks (SITP). Under this scheme the government provides up to 40 percent of the cost of setting up the park subject to the limit of Rs 40 crore.Companies such as Quantum Clothing, DEB Fashion, Seeds Intimate Apparel, Pioneer Elastic India and Ocean India have already established set up their operations in the Brandix India apparel park.The Ministry has been making serious efforts to attract Foreign Direct Investment (FDI) into Indian textile industry and the Brandix India Apparel City is a shining example which would motivate similar and large scale FDI players into Indian textile industry FUNDINGSLeading Investment Holding Ltd (LIHL) is an alliance of globally renowned partners in which the Brandix Group is the largest shareholder with management control. The three other global partners are Jacob BAC (a subsidiary of Brandot), Compagnie Mauricienne de Textile Ltd (CMT, Mauritius) and Pioneer Elastic Holdings Ltd (Hong Kong).LIHL was formed to invest in companies that fall within the apparel value chain.LIHL was formed to invest in companies that fall within the apparel value chain. The short term focus will be on potential opportunities within Brandix India Apparel City (BIAC) in Visakhapatnam, India. LIHL is also open to other industries which support and synergize with the apparel value chain such as real estate, logistics, leisure and other infrastructure. The longer term focus will be to invest within the South Asian subcontinent.LIHL operates as a Private Equity Investment Fund with primarily a medium to long term investment term (2 to 5 years) although the duration may vary depending on the type and nature of investment. LIHL would invest either directly or by arranging syndicated financing.The first investment fund was initiated in March 2008 with the acquisition of stakes in Ocean India (Pvt) Ltd (a knitted fabric mill) and Pioneer Elastics (India) Private Ltd (a narrow fabric elastic factory), located within BIAC in Visakhapatnam.LIHL provides the following services:Private Equity and Venture Capital InvestmentsProject AppraisalFinancial StructuringSyndicated Debt FinancingSynergies within our portfolio of investmentsExpertise of our partners in the apparel value chain Company Formation and AdministrationBIACS vertically integrated supply chain dramatically reducing lead time and costs. BIAC is positioned to be the preferred global sourcing hub for apparel solution. Producing 4 leading labels Victoria SecretPinkM&SBIAC provides unmatched value to manufacturers through vertical fiber to store integration which enables both garment producers and buyers to source all their materials requirement from within the park.The area surrounding the park has a vast labor pool which is easily trainable and cost effective with low attrition rates. Units within the park can operate on triple shifts ensuring maximum utilization of capital assets.Andhra pradesh is the 3rd largest producer of cotton in India this offers manufacturers a reliable and cost effective source of raw materials.The dynamics of the apparel market demands the key value propositions of speed to market, least cost, flexibility & assurance of compliance. BIAC is built on this premise. Its smooth flowing verticality will ensure minimum lead times, the most critical competitive factor.

BIAC offers the total convenience of a fully-fledged industrial city with modern infrastructure including 'Plug and Play' for immediate production. BIAC provides business partners with immediate access to all their requirements from sourcing to transportation. An internal single window clearance facility enables speedier documentation processing and authorisation from a single point. The city will enjoy world class facilities and conveniences such as a training institute, banks, recreational and township amenities and close proximity to key international gateways.Recognized as a Special Economic Zone (SEZ) by the Government of India, BIAC displays a state of the art infrastructure. It also enjoys a host of attractive financial and operational incentives for investors, as well as comprehensive support to facilitate seamless and rapid start-up of operations.

Brandix India Apparel City is an ambitious example of innovation, technology and efficiency that provides a platform for end-to-end apparel solutions. The breakthrough concept of seamless Fibre-to-Store integration offers unmatched advantages for global apparel chain partners. BIACs seamless concept ensures that all needs are met, encompassing raw material sourcing to the shipping of final products all in one place

ADVANTAGES OF SEZ SCHEMESFISCAL BENEFITS Concessional income tax rate of 20% for a period of 15 years from the date of commencement of commercial production as against present corporate tax 32.45% Units can import goods without payment of duty for manufacturing and operation purpose Services tax is exempt Procurement of goods from Domestic Tariff Area (DTA) without payment of duty DTA sales are permissible (subject to duty), provided net foreign exchange earner SEZ is a designated duty-free enclave and treated as foreign territory for trade operations, duties and tariffs Permit 100% FDI with full & free repatriation of export proceeds Full repatriation of dividends Full freedom for sub-contracting including sub-contracting abroad Single window clearance facility for clearances Units could dispose of rejects, scrap in domestic market on payment of duties

NATURAL RESOURCE AVAILABILITY IN ANDHRA PRADESHCotton production in Andhra Pradesh2nd largest cotton producing state12% of countrys productionCotton with long staple fibreEnergy-Adequate supply of coal from neighboring statesWater-Perennial water supply: Eluru Canal (source: Godavari river)

Brandix India Apparel City is the next generation of business development that encompasses all aspects needed for any investor or partner to be able to setup immediately without having any difficulty concerning infrastructure, amenities and utilities. Located in one of the biggest apparel hubs in the world BIAC offers close proximity to cost effective labor, raw materials and resources that are needed to create our Fiber-to-Store concept.

In addition, BIAC enjoys numerous financial benefits provided by the government of India which are extended to each and every partner that invests and sets up in BIAC.

Fiber - to Store concept: benefits all members of BIAC Placement of unit offers unmatched speed an essential element for Apparel Industry.SUPPLY CHAIN CONCEPT

Real Time Connectivity and Seamless Integration Delay in sourcing and receiving material. All units connected with ERP network.

Right Cost - Most competitive price location Benefits of Economic scale SEZ Fiscal benefits Competitive utility cost Efficiency & saving in front end cost Centralized logistics Banking facility Common ETP & WTP. No increase in Power, water & other cost for 5 years.

Total Convenience No travelling, no sourcing hassles, No time waste World class supply chain partner Full-fledged industrial city, with all amenities and facilities provides Plug & Play Infrastructure where investors can simply setup shop immediately.Absolute Assurance BIAC offers one of the most environmentally friendly locations to operate your unit. It provides the best of both worlds- operating ease as well as environmental and socially conscious policies implemented far beyond the established standards.

EFFLUENT TREATMENT PLANTThe park common effluent treatment plant meets the strip test environmental standards and is capable of treating 56 million meters of effluent discharge per day which is then piped 9 kms and discharged off shore via 7.5 million USD marine outfall pipeline.Manufacturers need not conduct pre-treatment process as the park will seamlessly meet the needs. Companies manufacturing within the park will have peace of mind because that guarantees, compliance with the governments environmental regulations. The national pollution control board has recognized this environmental commitment and has granted BIAC a 3 years consent for operations permit. Instead of the normal 1 year certification the parks environment management system has also gained ISO 14001 certification the 1000 acre from vizag port and well connected through road & rail to other major ports. An onsite customs processing station ensures quick and secure logistics.WATER TREATMENT FACILITYGodavari river under 400 million liter rain water harvesting pond provides the park with an ample supply of water the ultra-modern water treatment facility in the park is capable of treating 60 million liters of raw water a day.POWER There is a continuous stable supply of power to all operating units with a dedicated 200 MW power substation. Power is obtained from 3 different sources to minimize interruptions. It offers 33 KV of ready to use power right to door step of each operating unit.

INTERNAL ROAD NETWORKThe 1000 acre facility has an extensive road network to allow for easy transportation of materials to and around the park. The internal road system is 8 km long, 36 mtr wide fully carpeted, 4 lane main road with sidewalks and roadside greenery including 51 km of 24m wide secondary roads.The Internal road system has been linked to national highway to allow for easy transportation of products to and from the nearby ports.WATER TANKSTwo overhead water tower with a capacity of 1ML each.NON PROCESSING ZONEOver 250 acres of land dedicated to non-processing facilities including 120 acre green belt, housing, hotel rooms, recreation facilities, meeting spaces, and fine dining options.TELECOMMUNICATION TOWERDedicated ICT (voice, data, mobile WIFIMAX broadband) facilities provided by BSNL.CURRENT MANUFACTURERS IN APPAREL PARK Brandix Apparel India UNIT I

Brandix Apparel India UNIT II

Brandix Apparel India UNIT III

Ocean India

Seeds Intimate Apparel India (Synthetic)

Quantam Clothing (Inner wear and Mens Shirts)

Pioneer Elastics

Thermax : Energy Solutions

Screenline Printing : Printing services

S&S Underwire for Bras

International Trimmings & Labels : Manufacturing tags & labels

Ribbest Ribbons and Bows (India) Pvt ltd : Manufacturing ribbon & bows.

Shore to Shore

Vardhman Yarns & threads Ltd

PRODUCT FOCUS: PHASE IKnits CategoryProduct Groups: Knitted Undergarments Bras Innerwear/Yoga pants/T-shirts

NEW UNITS BEING AGGRESIVELY SCOUTED PHASE 2Spinning millYarn dyeingSynthetic Warp knittingWoven textilesGarment TextilesAccessoryFoam based cup moldings for brassiersLace Manufacture

TAXImport Duties Complete exemption of import duty onCapital equipment including second hand machineryBuilding structuresRaw materialsConsumablesTrade Benefits: Duty free access into japan through the indo japan FTA.2.2 ABOUT VOLTA FASHION

Volta Fashions has years of solid grounding in manufacturing quality products. The company has promoted by technocrats with over a decade experience, with a single minded motto of devotion to excellence in quality, delivery and price to suit all types of requirements and occasions i.e. can it be for promotional or retail sale, chain stores or wholesale. The company has a pool of designers, who are constantly busy trying to make the products itinerary versatile on every count. Volta Fashion products hold the credit for their excellent quality, beautiful prints and on time delivery schedules. Volta Fashion products range includes shirts, pants, ladies wears, etc. Volta Fashion export Volta Fashion products to Spain, Italy, U.K., France, Netherlands, Germany, U.S.A., Japan etc.VOLTA FASHION MISSION To constantly work on developments by using world latest technologies, in order to respond to customers demands, competitive prices and quality control are part of the most the successful results that Volta Fashions brings to its clients.VOLTA FASHION VISIONThe company aims to become one of the most important foreign investment groups in Asia, in the field of textile.VOLTA FASHION GOAL Volta Fashions Pvt Ltd will always look for the best management and people, as well as the most effective machines, to reach the top level of quality control, cost efficiency and Eco friendly. To place the clients fulfilment as a permanent target. The customers satisfaction With the above Volta Fashion will insulate Volta Fashion business against any possible global economic slowdown by higher customer centricity and offer increasing value added services and products.MACHINERY

Garmenting unit is equipped with hitch Japanese sewing machines and other essential supporting machinery like lay-cutting machines, steam irons, stain removing stations etc... To make contemporary quality garments. The trained skill-set Volta Fashion have include experienced pattern masters, cutting masters, supervisors and tailors who work as a team.

DepartmentMachine NameNo's

Fabric Section:

Inspection Machine01

Cutting Section:

East man straight knife machine02

East man band knife machine01

East man end cutter04

Fusing Section:

Fusing Machine Hashima1

Pinning table with laser NgaiShing1

Kannaigaiser1

Mid Processing:

Collar Trimming NAGAISHING1

Cuff Blocking NAGAISHING1

Automatic Pocket Creaser Machine MAICA1

Placket Folding Machine MAICA1

Front Placket Machine KANSAI1

Sewing Section:

Juki single needle lock stitch machines(DDL 8300N)100

Juki single needle edge cutter machines With control panel and under bed trimmer(DLM 5400N)8

Juki 5th over lock machines(MO 6716)6

Juki button attaching machine(LK 1903)1

Juki button hole machine(LBH 1790)2

Kansai special machine (for shirts front placket)(DFB 1404 PSF)1

Kansai special machine (for trousers waist band)(DFB 1404 WB)1

Yamato 5th flat lock machines(CF2300M)6

Juki bartack machine(LK1900)3

Durkopp adler single needle (UBT) machines with control panel16

Durkopp adler eyelet machine1

Nagashing snap button machine(NS 45)1

Juki feed of arm machines with puenamatic roller(MS 1190)4

Kanasai special machine for pocotting(PX 302)1

Ramsons and silty bottle ironers8

Teressure bling hemming machine(BS 101)1

Juki double needle lock stitch machine(LH 3168)3

Juki double needle lock stitch machine with split bar (LH 3100)3

Finishing Section:

Body Press VIET1

Collar/Cuff Pressing VIET1

Semi-automatic folding table VIET5

Steam Boiler With pressing table RAMSONS5

Stain Removing systems RAMSONS1

Thread sucking Machine RAMSONS1

Compressor

PRODUCTION CAPACITYA well-equipped garment unit, planned and well stich infrastructure forms the backbone of the garment business processes at Volta Fashions Pvt LtdApart from Volta Fashion garment unit, Volta Fashion also deal with suppliers of garments who regularly work for us. This enables us to meet timely-dispatches and bulk orders.Volta Fashion use sophisticated machinery and processing methods to meet the customized requirements of Volta Fashion customers. These processes enhance the durability and the look of the garments products.

Per day Production Capacity

For half sleeve shirts1500 pcs. Proposed Production P/D by May 2011 9000pcs

For full sleeve shirts with matching1500 pcs. Proposed Production P/D by May 2011 6600pcs

SAMPLE UNITVolta Fashion have well established separate sampling division with experienced pattern masters and sample co-ordinators to achieve the quality samples as per international buyers requirements in time.Volta Fashion regularly make proto and salesman samples. Moreover are develop new varieties of fabrics at regular intervals in order cope up with international fashion trend; and produce samples periodically

CHAPTER 3: PRIMARY DATA ANALYSISWe have visited two Apparel parks Brandix Apparel India and Volta Fashion which are located in Vishakhapatnam, Andhra Pradesh. Our primary research involves collecting data about operations, techniques and general information directly from the employees of the Apparel Park. This section includes details about interviews, surveys, observations, and analysis. Data is collection method is qualitative via interview and observations and quantitative via survey forms.The Interviews which we have taken are recorded. The survey is divided in three categories Apparel Cluster Survey, Customer Perception and Retailer/ Buyer Survey. The observation is done by taking notes in written format while going through the induction part.3.1 THE OBSERVATIONSThe observation part is consisting of written notes which we have taken by observation and during the induction part.3.1.1 BIACBrandix India Apparel City (BIAC) is a revolutionary development in the apparel industry; a unique, integrated apparel supply chain city, managed by Brandix Lanka Ltd. Spread over 1000 acres in the port city of Visakhapatnam (or Vizag for short) in the eastern state of Andhra Pradesh, it brings alive an avant garde 'Fibre to Store' concept. BIAC will bring together world class apparel chain partners from the design table to consumer brands in flawless integration.Conceived and nurtured by Brandix, Sri Lanka's largest apparel exporter, BIAC hightlights India's phenomenal synergies in the world of textiles. To leverage India's immense potential for economies of scale and other robust business fundamentals in its fast growing economy, Brandix brings 30 years of industry expertise and invites other world class experts to join its value chain to enjoy assured mutual benefits of investment.The dynamics of the apparel market demands the key value propositions of speed to market, least cost, flexibility & assurance of compliance. BIAC is built on this premise. Its smooth flowing verticality will ensure minimum lead times, the most critical competitive factor.BIAC offers the total convenience of a fully fledged industrial city with modern infrastructure including 'Plug and Play' for immediate production. BIAC provides business partners with immediate access to all their requirements from sourcing to transportation. An internal single window clearance facility enables speedier documentation processing and authorisation from a single point. The city will enjoy world class facilities and conveniences such as a training institute, banks, recreational and township amenities and close proximity to key international gateways.Recognized as a Special Economic Zone (SEZ) by the Government of India, BIAC displays a state of the art infrastructure. It also enjoys a host of attractive financial and operational incentives for investors, as well as comprehensive support to facilitate seamless and rapid start-up of operations.Brandix India Apparel City is an ambitious example of innovation, technology and efficiency that provides a platform for end-to-end apparel solutions. The breakthrough concept of seamless Fibre-to-Store integration offers unmatched advantages for global apparel chain partners. BIACs seamless concept ensures that all needs are met, encompassing raw material sourcing to the shipping of final products all in one placeBrandix India Apparel City is the next generation of business development that encompasses all aspects needed for any investor or partner to be able to setup immediately without having any difficulty concerning infrastructure, amenities and utilities. Located in one of the biggest apparel hubs in the world BIAC offers close proximity to cost effective labor, raw materials and resources that are needed to create our Fiber-to-Store concept. In addition, BIAC enjoys numerous financial benefits provided by the government of India which are extended to each and every partner that invests and sets up in BIAC. Fiber - to Store concept: benefits all members of BIAC. Placement of unit offers unmatched speed an essential element for Apparel Industry. Real Time Connectivity and Seamless Integration Delay in sourcing and receiving material. All units connected with ERP network. Right Cost - Most competitive price location Benefits of Economic scale SEZ Fiscal benefits Competitive utility cost Efficiency & saving in front end cost Centralised logistics Banking facility Common ETP & WTP. No increase in Power,water & other cost for 5 years. Total Convenience No travelling, no sourcing hassles, No time waste World class supply chain partner Full fledged industrial city, with all amenities and facilities provides Plug & Play Infrastructure where investors can simply setup shop immediately. Absolute Assurance BIAC offers one of the most environmentally friendly locations to operate your unit. It provides the best of both worlds- operating ease as well as environmental and socially conscious policies implemented far beyond the established standards. Industrial units within the park can make use of the multi-million dollar Effluent Treatment Plant for responsible sewage discharge, a Water Treatment Plant which recycles and purifies water to drinking standard, and a Rainwater Harvesting Unit for production purposes.

PRINTING Receipt of Print Designs from customer Color separation by using AVA color separate software ( from UK) Each color will have different screen Colorwise design will be separated Engraving will be done through Laser (Laser engraving will be done then chemical coating on roller and machine engraving) Screen supply for printing Printing screen roll Cost Rs.10$ Roller cannot be reused,they will store the roller in design bank,if the same design repeats they will use the roller from design bank. 2-3 yrs fashion repeats Dyes only pigments dyes are used here5S OF BRANDIX:- To identify the problem Know the standard Activity standard should be fixed See the difference Eliminate the inventory US TEAM JAPAN TOYOTA FOR LEAN PROCESS7 Types of waste:- Transport Inventory Motions Waiting Over production Over processing DefectsActivities will be checked & they will eliminate waste Goods receipt note Value screen mapping Dispatch

30- 40 days to complete on orderSMV 3.5 minimum to finish one garmentPast planned efficiency 60%Present Planned efficiency 80%Value added activity: When the person start to work on fabric from cutting till sewing(employees involved in work for core product)Non value added activity Receipt of fabric from supplier Storing the goods Quality checking

Problems faced by brandix Huge cost on transport Lead time - goods from china Inhouse transportation Layout plan (Initial it was 22 now it reduced to 11)

BRANDIX FACILITY Ginning and spinning is not inhouse Yarn procurement from outside supplier( cotton suppliers from maharastra.gujrat& AP) Major fabric supplier for Brandix Ocean India from srilankaThey exports to US & UK not having business with IndiaUNIT 2 Exclusive for M&S Main Production Vests 3100 employees (both shifts) Production output 1002000 pcs /day Decentralized management 11 operation and 2 modules(1 module cut to pack & quality checking) Total 12 modules 7 plants in srilanka Brandix is vertical integration( If customer demands materials from abroad they will import from outside)

TURBILITY TESTING Raw water Ph 8.02 Sedimentation Ph-7.54 Sand filter - Ph 7.48

Effluent TP: Ph 10.42 maintained Colour 4192

If Chemical oxygen demand increases oxygen demands 584 mg/litre and Chemical oxygen demand should be less than 250 ( standard)Sedimentation Ph 7.83 Colour 768 COD 292 mg/litre

Treated Effluent Ph 7.12 COD 147 mg/litreCost of treatment - Rs.35/litre

3.1.2 Operational Units

Brandix Apparel India UNIT ISingle largest ladies underwear manufacturing factory in India.First factory in BIACBrandix Apparel India UNIT IICurrent manufacturers hosted by BIAC include Brandix apparel India. Land allocation 15 acres, products Underwear (ladies)

Brandix Apparel India UNIT IIIManufacturers of Lounge wear ( Yoga + T-Shirts)

Ocean IndiaProduct : Cotton and cotton/lycra circular knitted fabricFully equipped testing labKnitting, dyeing, printing & finishing operations

Seeds Intimate Apparel India (Synthetic)A four way joint venture between Brandix (Sri Lanka), Brandot & Mast Industries (USA) and Clover (China)Managing Director - Dave Rana SinghePrimarily for VS bra Production

Quantam Clothing (Inner wear and Mens Shirts)Quantum is the largest hosiery suppliers to Marks & Spencer UK and was formed in 2000 with the management buyout of Coats Viyella. Quantum Clothings policy is to offer its customers high standards of quality in all of its products. A Quality Management system, based on the requirements of ISO9001-2000, and an on-going audit monitoring program ensures continuous improvement throughout their business and help to achieve the financial performance they have targeted.

Pioneer Elastics A Hong Kong based company manufacturing narrow elastic for intimate wear, underwear, and sportswear. With three state-of-the-art manufacturing facilities in China, Thailand and India, their monthly production exceeds 50 million meters. They are certified in ISO 9001, ISO14001, ISO18001, and Oeko-Tex Standard 100 and have been internationally recognized for its high quality standard. Combining with the strengths of their computerized production equipments, advanced operation and management system, Pioneer Elastic is the perfect source of narrow elastic.

Thermax : Energy Solutions Screenline Printing : Printing services

S&S Underwire for BrasManufacturers of Underwires for Bras

International Trimmings & Labels : Manufacturing tags & labels

Ribbest Ribbons and Bows (India) Pvt ltd : Manufacturing ribbon & bows.

Shore to Shore

Vardhman Yarns & threads LtdDyeing of Sewing Threads

Brandix facilitates: Vertical integration Speed- for value chain partners Value- Economies of Scale Conversion- Plug and Play, minimum lead time Assurance- Government supplies and policies Innovation- Environmental Friendly locationSTATISTICS: 13 operating units; 7 are large 15000 people, 11500 women 35% CGR Processing Zone- 750 acres Non processing Zone- 250 acres Turnover: 550 million USD

Marks and Spencer 80% Innerwear and 20% V neck vests 3000 employees 1,20,000 pieces of production per day Follows cut to pack module ( including quality check and packaging) Development merchants of the company does the pricing and quality; shipping done on Fridays and Saturdays (along with samples) Generally takes about 30-32 days Method of Lean- ( waste integration) 40-50% efficiency to 60-80% efficiency IU Instant underwear has a turnaround time of only 15 days from cut to pack Identified 7 types of Wasteful activities: Transportation Transport is the movement of materials from one location to another, this is a waste as it adds zero value to the product. Why would your customer (or you for that matter) want to pay for an operation that adds no value? Transport adds no value to the product, you as a business are paying people to move material from one location to another, a process that only costs you money and makes nothing for you. The waste of Transport can be a very high cost to your business, you need people to operate it and equipment such as trucks or fork trucks to undertake this expensive movement of materials. Motion Unnecessary motions are those movements of man or machine which are not as small or as easy to achieve as possible, by this I mean bending down to retrieve heavy objects at floor level when they could be fed at waist level to reduce stress and time to retrieve. Excessive travel between work stations, excessive machine movements from start point to work start point are all examples of the waste of Motion. All of these wasteful motions cost you time (money) and cause stress on your employees and machines, after all even robots wear out. Over production The most serious of all of the seven wastes; the waste of overproduction is making too much or too early. This is usually because of working with oversize batches, long lead times, poor supplier relations and a host of other reasons. Overproduction leads to high levels of inventory which mask many of the problems within your organization. The aim should be to make only what is required when it is required by the customer, the philosophy of Just in Time (JIT), however many companies work on the principle of Just in Case Over processing The waste of Overprocessing is where we use inappropriate techniques, oversize equipment, working to tolerances that are too tight, perform processes that are not required by the customer and so forth. All of these things cost us time and money. One of the biggest examples of over-processing in most companies is that of the mega machine that can do an operation faster than any other, but every process flow has to be routed through it causing scheduling complications, delays and so forth. In lean; small is beautiful, use small appropriate machines where they are needed in the flow, not break the flow to route through a highly expensive monstrosity that the accountants insist is kept busy Waiting How often do you spend time waiting for an answer from another department in your organization, or waiting for a delivery from a supplier or an engineer to come and fix a machine? We tend to spend an enormous amount of time waiting for things in our working lives (and personal lives too), this is an obvious waste. The Waste of Waiting disrupts flow, one of the main principles of Lean Manufacturing, as such it is one of the more serious of the seven wastes or 7 mudas of lean manufacturing. Inventory Inventory costs you money, every piece of product tied up in raw material, work in progress or finished goods has a cost and until it is actually sold that cost is yours. In addition to the pure cost of your inventory it adds many other costs; inventory feeds many other wastes. Inventory has to be stored, it needs space, it needs packaging and it has to be transported around. It has the chance of being damaged during transport and becoming obsolete. The waste of Inventory hides many of the other wastes in your systems. Defects The most obvious of the seven wastes, although not always the easiest to detect before they reach your customers. Quality errors that cause defects invariably cost you far more than you expect. Every defective item requires rework or replacement, it wastes resources and materials, it creates paperwork, it can lead to lost customers. The Waste of Defects should be prevented where possible, better to prevent than to try to detect them, implementation of pokayoke systems and autonomation can help to prevent defects from occurring. Other wastes Waste of Talent; failing to make use of the people within your organization. This is an issue that many of our companies in the West fail to address. We still tend to operate within a command and control environment and take little real notice of what our employees really think and what they can contribute. Your employees are your greatest asset by far and can help you to drive out many of the other wastes. Waste of resources; failure to make efficient use of electricity, gas, water. Not only does this waste cost you money it is also a burden on our environment and society as a whole. Wasted materials; too often off-cuts and other byproducts are just sent to landfill rather than being utilized elsewhere.

Any activity that changes the WIDTH, FORM or FUNCTION is a value added activity; the others need to be reduced Main component of LeanLean Six Sigma is a results-oriented approach to improving processes across the organization. It combines by integrating the tools and processes of Lean and Six Sigma - a powerful engine created for improving quality, efciency and speed in every aspect of your business.Brandix Lean Six Sigma consultants are focused on ensuring that all business improvement initiatives achieve results - support through implementation auditing.Our business improvement offering at Brandix includes improvements across: Order to Delivery WorkflowsCreating efficient workflows through optimized processes, planning tools and effective integration of KPIs and metrics to measure & monitor performance for operational excellence.Planning, Procurement & InventoryOptimization of re-ordering, maximizing capacity usage, follow up and freight planning through planning tools and real time insights of the production processProduction Efficiency and Cycle TimeImplementing ideal processes with supporting tools such as centralized data cells, web based file directories and automated manual processes that eliminate non- value adding tasks and reduce unnecessary communication between departmentsKPIs and DashboardsBringing greater visibility of day to day operations such as shipment due dates, delivery status, performance indicators and other critical organizational information through relevant and accurate insights Accounting Transaction ProcessesImproved performance and control of the administration of finances via redesigning and automating the manual, non- value adding and time consuming activitiesWastage and Overheads ReductionWastage reduction presents the best opportunity to gain savings and improve the quality of operations. We help achieve this through reduction in overall delivery cycle times; better visibility through easy to maintain job status tracking, re-designed shop floor layout to streamline the workflow and limit waiting time and resource wastage.Benefits of Lean Manufacturing Significant bottom line cost savings Improved quality of product or service as perceived by internal and external customers Improvements in the Cycle Time and Delivery Efficiency Quality driven attitude and approach by staffOcean India Order to shipment- 70 days In emergency about 15 days (instant underwear) Circular knitting- Lycra, cotton, CVC, Melange Yarn- Infotech , local spinning mills 76 knitting machines; 20 tonnes per day 60% of the production is supplied in BIAC and the rest is exported 200 different varieties of fabric Single jersey, double jersey and interlocks Supply to Limited Brand (M&S and Victoria Secrets and Pink) PVH ( CK, Tommy Hilfiger) Decathlon Jockey Store 15 days worth of inventory in fabric and 30 days worth of inventory for yarns Price of the fabric varies from $6/kg to $14/kg depending on the finishes and prints and end product quality The dyeing machines are imported from China whereas the knitting machines are sourced from TaiwanDyeing 20 tonnes per day, 13 dyeing units 1000 kg one machine AVA color operating software CAD FILE-----color separator-----laser engraving One screen upto 10,000 meters and 12 designs for 6 months 2-3 years fashion repeats Types of prints: Pigment, Rotary and linen outHUD HUD- 570 crores; 1 month productivity

3.1.3 Supply Chain ManagementWhen considering present value chain activities of Brandix six distinct value-adding activities can be identified R&D This value-adding function includes Brandix that engage in R&D, as well as activities related to improving the physical product or process and market and consumer research. Still brandix has low involvement in this stage. Design This stage includes Brandix that offer aesthetic design services for products and components throughout the value chain. Actually Brandix has buyer wise product development team. Design and style activities are used to attract attention, improve product performance, cut production costs, and give the product a strong competitive advantage in the target market. Still brandix has low involvement in this stage. Inbound: This stage refers to the inbound processes involved in purchasing and transporting textile products. Raw material such as Fabric, buttons, zippers, labels, cartons, polybags, hangers, sewing threads are commonly used to manufacture and finish a garment and components such as parts of the sewing machines, furnace oil, water and electricity supply are indirectly support to the production Most of time Brandix cant produce all raw materials under one roof. It includes physically transporting products, as well as managing or providing technology and equipment for supply chain coordination. Logistics can involve domestic or overseas coordination. In Brandix has anther additional group called Brandix logistic to control and advice for unbound logistic activities Most of the raw materials are sourced from within the group raw materials suppliers. Sometime Brandix sourced raw materials from India, Pakistan, Hong Kong and China. All the foreign raw materials merchandize as a FOB orders. Operations Production/Assembly/Cut, Make, Trim: Brandix cuts and sews woven or knitted fabric or knit apparel directly from yarn. The group specialized in manufacturing casual bottom, intimate apparel, underwear, lounge and sleepwear, bras, woven and knitted fabric and host of apparel industry accessories. Each plant has their own fabric and trims store, cutting department, technical department, sewing floor and ironing and packing department. Productions starts after doing the pilot run and it helps to minimize measurements and other quality related issues. The cut-and-sew classification includes a diverse range of establishments making full lines of ready-to-wear and custom apparel. Sometime Brandix performing cutting or sewing operations on materials owned by others. For the manufacturing brandix has been using lean manufacturing and modular systems. Brandix can purchase textiles from another establishment or make the textile components in-house. All Brandix apparel manufacturing plants going under higher efficiency its help to reduce production lead time. Outbound Brandix after apparel is manufactured, Brandix has one warehouse in every manufacturing plants. Sometime Brandix responsible for value-adding activities outside of production. Like do some packing activates in warehouses. Most of time brandix do free on board orders that time have to responsible for outbound logistics activates also. Internal logistic activates and Shipping is done by third party logistic supplier and there is a separate supplier to deliver the containers to the ports and to handle documentation work.Bradix has additional group for monitor all logistic activities. Sales and Marketing Brandix has marketing departments in New York, London and Hong Kong. In Sri Lanka brandix buyer wise brandix has marketing teams. This function includes all activities and companies associated with pricing, selling, and distributing a product, including activities such as branding or advertising. Services This includes any type of activity a firm or industry provides to its suppliers, Buyers, or employees, typically as a way to distinguish itself from competitors in the market. Also defectives are found by them in the final inspection as well as their auditing point before send to retailers. We have to replace the shortages to avoid dissatisfaction. Further to that we are claimed discounts for poor quality products.Managing the production of the company's good and services, monitoring, storage, inventories, coordinating with suppliers and ensuring timely distribution of goods are some of the key functions covered by supply chain management (SCM). When consider Brandix the supply chain is actually made up of five important components of plan, source, make, and deliver, return. It also includes three flows which are cash, product and information within the chain. .Through these components and members, the Brandix management of the supply chain allows efficient inventory control. As a dynamic process, the SCM requires the continuous exchange of information, finance and materials between and within the members of the chain. These elements of the SCM also make this business aspect challenging to implement and maintain.The Brandix is one of company those who have been applying this strategy.. In India, the apparel industry is one of its important and highly contributory economic sectors, hence, various local apparel manufacturers and businesses are employing different innovations so as to operate successfully, Brandix Supply Chain Network

Brandix Supply Chain Management Functions Transport management system Transportation involves many different parties within and outside a company who are required to routinely share information and ideas. Specially involves some foreign countries also. Brandix use fully functional transportation management system should provide the basic components of a shared information system to support: Content such as rates, routes, roles, and contracts at inter-enterprise generic levels Commerce to support and create transaction sets, documents, and information exchanged to facilitate the booking, execution, The data model and data dictionary of the TMS should thus support a wide and diverse range of interactions. The combination of these robust system infrastructures and collaborative applications should enable the user to perform all necessary functions involved in the planning, execution, and analysis of transportation movements. Operations manufacturing Manufaturer bears the responsibility over the production of items according to the requested quality and the shipment of the right quantity to the right place on the right time. A lot of value addition is there for the items produced since sourcing is done locally unless it is an exceptional case; this is quite rare in the Sri Lankan apparel industry. The company focuses greatly on the control of its operations and the quality. This is the consequence of vertical integration and company seeks highest quality at every stage of production. Operations lead time depend on buyer requirement. Now our lead time depend on 90 days to 10 days. Brandix has falsities to complete all manufactures process within 10 days also. Supplier Relationship Management Brandix supplier Relationship Management is a relatively new way of categorizing softwareborn out of the concept that you have customer relationship management systems for managing customer-facing processes, enterprise resource planning (ERP) systems for internal processes and SRM for both supplier-facing processes and managing the supply base. Actually now Brandix use Fast React software to there , enterprise resource planning (ERP ).The heart of SRM is sourcing and procurement, which differ from their internally-focused ERP counterparts primarily in that the SRM modules have a much greater emphasis on integrating and connecting with the suppliers. SRM also includes interactions with the supply base throughout the full lifecycle of processes from design through to fulfillment, manufacturing, and settlement. Warehouse management system Brandix warehouse management system (WMS) provides database and user-level tools in order for a company to optimize its storage facilities while at the same time providing user level task direction and activity support. The combination of system-directed operations, supported by real-time, paper-less, and interactive information systems will provide warehouse management and personnel with the tools to direct, control, measure, and report on distribution operations. Demand management systems Today Brandix has moved beyond the narrow concept of statistical forecasting to encompass both global and cross enterprise trading partner processes. In addition, the real-time nature of todays business requires that rapid feedback from markets and adjustments to demand assumptions are propagated through the supply chain to improve delivery and cost performance. Demand management means identifying and creating demand (marketing, merchandising, and promoting), modeling (forecasting, pricing, and life cycle planning), and collaborating (communicate, simulate, and create consensus) with the network of trading partners. It also means evaluating results and creating learning cycles where the market, including geographic, demographic, and economic assumptions are evaluated and improved upon to constantly improve the performance of the chain.

3.1.4 Challenges in the SCM

Shrinking lead times Brandix identified rapidly shrinking lead times as one of the biggest challenges for the apparel industry. The growing demand for instant gratification by trend-driven consumers could result in manufacturers being given hours rather than days to deliver new designs within the next 18 to 24 months. Increasing no of style changers With is short time of period styles and designs are changing. When come new style for manufacturing plant they take some learning curve to come high efficacy level. Because this situations operations side cant do manufacturing products in high efficacy. Not enough capacity for own raw material suppliers Brandix own raw material producers cant supply total garment manufacturing capacity of brandix. That time brandix has to import raw materials form foreign suppliers. It manly effect to our value chain. As an example if import yarn and our factory produce fabric mean can add some ting to our value chain. In this fabric mils low capacity problem we had to export fabric from our suppliers it effect to our value chain. Poor flow of information Poor flow of information in both forward and backward in the supply chain. Our customers requirements, information and specifications may not pass to manufacturer/ suppliers and quality issues of the raw materials also not been informed to suppliers. Sometime above details not pass within group suppliers also. So, suppliers are able to send anything they produce as they do not get any feedback. Demand forecasting problems Poor demand forecasting. There is an issue in production planning and as result delivery are not met on time. Some raw materials such as packing trims are not in housed on time and unfinished goods are remaining at packing. Logistics problems Brandix has large number of logistics problems. Internal and external logistic problems increasing now day by day. Logistic and transportations problems effect to the on time delivery. Lack communications, non-skill human resources, dealing with lot of logistic companies those are the main reasons for logistic problems. Inventory management problems Poor inventory management. Raw materials such as interlining, has to maintain minimum stock as they widely used. Sometimes they are not available and it affects to production. WIP in embellishment division is higher and as a result garment finishing cannot be done as scheduled3.1.5 APAC: Volta Fashions Pvt. Ltd CAD - Software used - Rich peace and Gerber 1 line - 40 machines 1 line 1 style Per day production 250 pcs Total no of machines 2500 Sample approvals - 4 days leadtime

3.2 THE INTERVIEW/ RECORDINGS:The interviews are taken during our Apparel Park visit and the recordings are taken as per their permissions.3.2.1 Production Unit 1The standard time SMV , a standard time the product need to be completed, but in a normal scenario no module will ___them, so obviously we want around 40-50% efficiency-2mins it takes 4 mins 50 % advantage, the lean ___the logic is that we do atleast 80-90 percenimprovement..there will be less work in progress in the module, to ensure that the product flows smoothly that was the ideology why we came up with this. The Plant right now I running around 12 modules, our plan is, at least by the end of the financial year-end march or atleast april-the entire package should be, as in all the module should be lean There are people who sit over there and they lie with the customer. Suppose there is a development merchant, normally when you do the manage, marketing you manage, so they will tell you that these are the products that they want it to be done. So obviously those are the products that will develop by the development merchant with the samples.So why you do that to give a price for the product. They will give you samples to various companies- srilanka brandix and __ are the two number one competitors in this business, so they will play for both and we should give a better pricing to get the order with the quality. Its not simply the price, sohe ll do the sample,so once you get the things approved the bulk order will come to you, so obviously they are front end planners so they will identify these orders will go to india, some will goto srilanka, in our cluster we have 9 factories so some modules come here, some modules gone to srilanka. So based on the plant capacity, the moment order is placed here,there is factory managing. With factory planning we identify which particular style will run on which particular module and whatever is the time duration. So based on that we get all the R___, so we have a layout, so then the production starts. In a nutsell that is how that happens. So normally every Friday-Saturday is our shipment day. The order will get shipped out on those days. Factory-how we fuction. So here there is no merchandiser, no marketing guy sit here they will put in the head office and VS order will go to one, M&S order will come here, few M&S order will go to srilanka. Brandix as a corporate we are falling under the cluster called brandix essential. So under essential cluster we have VI1 VI2 and 7 plants in Srilanka. Likewise we have bra cluster, you have intimate cluster, you have like that goes cluster wise. Main is the product category. Essential entails all innerwear and___ then bra will be a different product. So then likewise it goes.To understand further we can say, we do a business on the (Brandix) group level- around 550-600 million dollar business we do- brandix as a whole. This cluster belongs to brandix essential. Essentials will mainly consider all inner wear. So our Cluster does 220 million US Dollar business (Brandix Essential Cluster). Park Is not fully operational. Park is set by brandix. Right now we are on 7 factories here..Park will get fully operational.Vertically integrated inside the park. The concept of Brandix coming to India ensure, our customer what he wants- quality and he wants on time delivery, to have the one time delivery your supply chain should be so perfect, you should ensure that all the supplies are kept that is why the vertical integration concept had come. Whatever the things required to produce-the garment should be within the reach___..self sufficient apparel theory on a concept.__ you have to get all the__backward integration is ___Vertical integration right now if I tell you we have a fabric.(ask greeshma), we have now labour supply, then we have a print, then we have vardhaman thread. So to certain extent integrations is there. But the problem is the customer places an order, he demands some level of quality so heyou have to get a particular label from his company, may not be available- we have to import but in the long term, when the customer comes then we will be able to elaborate all the supply chain__, if they are convinced.5 years down the line import anythingyou need yarn, you need pinning mill, you have a spinning mill then you need a ginning mill

3.2.2 Production Unit 2M&S is a permanent customer. Yes. They give season advance order. Not only here, there is another plant in ___ also. So half comes here half goes there. Not half..two third comes here, one third goes there. The order will be placed through the head office, _____ from their it gets split to the clusters. We ship-out from here to the end customers but order comes through____, we dont directly take order. We are shipping out directly to M&S UKwe get order from ___our logic is that we should manufacture the stuff and then we should get loaded-container, this container will go to the port, from there, there are nominated shipping lines, APL or whatever, so our responsibility ends the moment we load the container on to the ship, so from there on it is their responsibility. So obviously from the factory ________. M&S Bangalore has nothing to do inside. If they come they will come only to audits.They will ensure product quality as per the ..conforming to the quality they prescribed. That is the M&S India office. But they will not get involved with order quantity. Nothing like that. That will come from ___(Columbus). You cant put anything for the domestic market. .Special economic zone should be 100 %...export to be hundered. Yes you can do domestic but very less percentage.We have some reject percentages. There are three atleast hall ticket points. So these auditors come and they have to check the quality. It should be rework, independently involved CIFT. CIFT (dept.)are people who will be like the customer, they will mostly work with the like Bangalore team on the quality aspect. They have the independent right to fail the order at the end checking. 3 % random checking on the whole100% here. So if they found the parameter to go beyond, they will..you need to recheck hundred percent and they need to rework.3.3.3 Lean ProcessLean is basically need for our factory. We start up lean 8 months back. Lean is manufacturing system which addresses the waste elimination throughout the value stream from beginning to end. When customer places an order, the point that they raise the ___ form that point of time through the value stream the raise also starts.When we take an activity, 80 percentso the value added will be only around 20 percent so..necessary..you do some activities that dont add any value to the end product given to the customer but you must do that because you cant move the part over there. So the next process we call that necessary and value added. Others are like pure waste. We Identify even type of major waste:1) Transportation: 2) Inventory3) Motions4) Waiting5) Overproduction6) Over processing7) Defects

So you identify the waste throughout your value chain. So when we start the lean journey, what we did first is do our value chain__. From starting to end. Now we didnt consider the front end activities since they are happening in srilanka, so here, from the GRN (Good receiving note) when we receive our raw materials, thats the first step we do- unloading and GRN, from that we describe how much activities we have to conduct and what are the essential activities, how much time will irt take-what is uptime, downtime- likewise we make the value stream map. You can see sticky note for each process. Once you do the value stream mapping and also you can identify what are the value added activities out of that and what are the pure waste. If you take our total value stream we take around 30 -32 days to complete the total order. But if you take the SMV (Standard Minute Value) of one garment, supposed to be taken for one garment is average 3.5mins. Now if you have a machine, which is supposed to run 10hours a day and you run it only 5 hours due to breakdown or something else, you dont have work, so the uptime is 50 percent. Downtime is the opposite. 20 percent buffer for human inefficiencies. Lean plan was 60-65 percent, we grew to 70, now we plan to reach 80 percent.

Now if you are a customer, if you go and buy a T shirt, for what you will pay? You will pay for style shape and the pattern. Right? And also for the fabric quality and then the accessories, say bow whatever things there are and then you pay to the stitched garment. So consider we are a customer. What we want is good quality garment (high quality) , at a lower cost, and when you go and see that you like one Tshirt but the size you want is not available, then also again as a customer you will be frustrated.

So the three things a customer wants is:1) On time delivery (it should be available)2) High Quality3) Lower Price

So when you get , a businessman, what do they want? They want:1) More Profits (means sell it to higher price)2) Lower Cost3) Continue Business ( a person who comes today has to come again after three months or so)

The customer wants exact opposite of businessman, except the last one. So keeping this in mind, what is value added. The activity that we do change the fit, form or function of the raw material. To achieve what customer wants and also the customer willing to pay for that then we can say that is a value added chain.

Example: we bring fabric rolls from a fabric mill, we store it in our fabric stores: we have a lot of manpower , bring it down, GRN, put it to the racks, location then keep in maintaining then racing the __ after that issue to the cutting section , lift the trolleys, they keep under the cutting tables in order to cut. But after all anything happen to the fabric till now? Nothing. Did the fit change? NO. Size, form or anything not change, Function not change. So till cutting table everything is non value added. Value added is from the point a person starts laying the fabric and start cutting. What happens is you change the form. Shape is changed. But the fit still hasnt changed.You have certain entries and everything. Then you pass it to the sewing operater.Then they start stitching, the fit started to come- these are value added. Then again it goes to the check table. Quality checker checks. Does anything change in the garment? No. So quality checking is also a non value added activity.

So cutting and sewing are only value added. Identifying the value added activity is very important because then you start seeing all others as waste. Once you can identify then you think how to eliminate. There we start the lean: elimination of waste.

Certain type of tools. Like 5 S (arrange an orderly work place). Then you have ten step Problem Solving, Systematic Problem Solving, TPM- Total Preventive Maintainance (how to predict the machine breakdown earlier and stop the breakdown before it happens)

So lean is waste elimination, for that we need certain changes, problem solving approach, then you go to problem solving approach you need to..one mor important thing is sur__facing the problem to identify the problem. For that you need to know the standard. Definition of problem is the difference between standard and the actual. So for that you should know first what is the standard.

First, write the standard of all the activities separately, as of now what the standard is- good enough, wait for the standard it will never come, so what is right now in practice is the standard, then according to it what are the differences we have, we identify it as the problem.

So to identify the problem, we need to eliminate the inventory first. When you have inventory, you can hide behind the inventory. We can keep two days WIP. One line the garment is 100 pieces per day, so we keep 2000 pieces, tomorrow I have a machine breakdown in cutting section but still I can run my module. So that doesnt get highlighted as a problem. As we have WIP to cover it up. Thus we need to reduce the inventory. The moment you reduce the inventory the problems coming up everytime- earlier: from first operation to nex operation it was 30-40 pieces WIP, now we reduce it to 1. Force them to reduce it to 1. Though we still are keeping 2-3 pieces and trying to get it to 1 piece. The moment you have 1 piece you can have single minute machine breakdown. Forces the person to give a permanent solution to the problem. Then you use the tool BDC approach_______________________________________________.3.3 THE APPAREL CLUSTER SURVEYThe cluster survey is done for Brandix-Ocean India, Brandix-Apparel India and Vola Fashions.3.3.1 Infrastructure BIAC, Brandix Apparel India operation unit do the manufacturing of branded product like M&S, Pink and VS. Marks & Spencer and Victoria Secret are manufacturing units operated under Brand India Apparel City, both the units have been operating since 8 years. The business is registered since 2006 under the name of Brand India Apparel City. These units are not a part of cooperative society but are a part of BAIC group also encompassing a well-structured organization. Brandix Ocean India commenced its production from 2009. The company is located in BIAC on a 75 acre plot of land. Initially, having a production capacity 100,000 lbs/day. It is spread over 400,000 sq.ft. and Knitting test operations are also performed. Volta Fashions Pvt. Ltd is established in 2011. It is an Apparel park the land is provided by state government of Andhra Pradesh. Total area is 145 acres includes 18 units of production, 1 unit for washing and 1 unit for packaging. They do production of mostly local brand and the other like Leblanc, LP, Ragger koors, Van Heusen, Allen Solly, Dressberry, US Pollo, DNMX, Pepe. The one unit of production includes 5 lines for shirt and 4 lines for trousers.3.3.2 Employment and training The Brandix Ocean India has employed around 725 full time employees. Depending on type of employee training is provided minimum 30 days. The BIAC operation units Marks & Spencer manufacturing unit employs only full time employees i.e. 3100, whereas, Victoria Secret manufacturing unit employs both full and part time employees i.e.3800 and 500 respectively. A proper training takes places for the employees before joining the respective units and the duration ranges from 30- 45 days. The Volta Fashions Pvt. Ltd has total numbers of workers are 1000 to 1500. Wages given to them are 3500 to 5000 monthly basis. The working times are 9am to 5.30 pm. The training period is around 1month providing stipend.3.3.3 Sourcing The Brandix Ocean India raw material like yarn, knitted fabric bundles are easily available where 60% of raw material is procured locally and remaining 40% is imported by Srilanka. The price of fabric bundle is $6 to $14 per Kg. The BIAC operation units both Marks & Spencer and Victoria Secret manufacturing units raw Materials are procured by vendors coming to cluster and prescribing the orders. The Volta Fashions Pvt. Ltd sourcing of material is done from Karnataka, Tamil nadu.

3.3.4 Operation unit output & Innovative Technology The Brandix Ocean Indias output of the overall machine is above average and good efficiency around 70%. The innovation is being implemented in terms of process efficiency by using the new technology like automated screen printing with different colors. The fabric printed and washed is send to the Brandix Apparel unit for the production of lingeries of brand M&S, VS and Pink. All process of fabric dyeing, washing and printing is automated. For yarn dyeing jet machine has used mostly chemical dyeing, for printing screen printing method has used. Chemical insertion during dyeing is done by manually. In the BIAC, there is automation done for both units: Marks & Spencer manufacturing unit which is lean adjustment as per the lean process and for Victoria Secret manufacturing unit which is done by internal Research and Development department. Software used in Marks & Spencer manufacturing unit is HRMS (internally developed) and for Victoria Secret manufacturing unit is Movex. Product modification is done in terms of design by Marks & Spencer manufacturing unit depending on customer demand to increase the marketability of product. The Vola Fahions Pvt. Ltd:- machines used to facilitate the production are CAD for pattern making, Cuffs fusing machine, thread absorbing m/c and the productivity of a machine is 200 pieces.3.3.5 Productivity Efficiency of Machine The Volta Fashions Pvt. Ltd productivity of a machine is 200 pieces. The Brandix Ocean Indias output of the overall machine is above average and good efficiency around 70%. In M&S and VS manufacturing units the success rate of fit approvals is by 180% and improving overall productivity by 33%.

3.3.6 SCM & Related Problems The Brandix Ocean Indias lead time for supply of raw material is less than 30 days if it is procured locally and 1 to 2 months lead time if it procured by foreign market. The supply chain problems are related to time, price of material and sometime the quality of raw material. To tackle this problem the analyzing team rectifies it by going to the stage where problem has occurred. The BIAC operation units Marks & Spencer manufacturing unit the lead time taken by the vendors to supply the materials varies between 1-2 months. Whereas, for Victoria Secret manufacturing unit the time taken by the vendors to supply the materials for standard orders it takes 1-2 months but for speed orders the delivery is done within a week. There are no problems faced related to supply chain also the required raw material is easily available to both the units by Ocean India which is part of BIAC and by other vendors. There are not such SCM related problems. The Volta Fashions Pvt. LTD supply quantity of the Volta Fashions is around 2000 pieces in 2 weeks which is send to head office of Volta Fashions in Bangalore.3.3.7 Outlets Information The Brandix Ocean India doesnt have their own outlet because they are producing their final product for the input of Brandix Apparel for manufacturing foreign lingerie brand but the fabric if it gets ruined during printing or washing is sold as a scrap with 14% of actual price in the park itself. The BIACs M&S and VS operation units dont have their retail outlet as they are exporting it to buyers who are foreign market like US and UK. Pricing of the product is decided by the head office. The Volta Fashions Pvt. Ltd has their own outlet in the outskirts of Vishakhapatnam in Mindi, they sell their manufactured branded product with 15% of cost.

CHAPTER 4: SUGGESTIONS AND RECOMMENDATIONSVOLTA FASHIONS Production: The production rates can be increased further by implementing better techniques and increasing the number of machines. They already have a large premises most of which is unused space which may be used meticulously to increase productivity. Marketing: Marketing can be stronger and more oriented towards the major brands bringing greater revenues as compared to the smaller local brands they manufacture for. Product: The product variety is limited to mens shirts, trousers and denims apart from some kids wear. They may increase the product variety offered which in turn would increase the business. Also, since they procure fabric and dont manufacture it on their own, they may plan a unit regarding the same in future to ensure proper and continuous supply of quality fabric. Knitwears can be increased as majorly, wovens were being manufactured. Quality: Finer fabrics sourced from major suppliers, a probable fabric manufacturing unit. Design: Hiring more renowned and qualified designers, producing own designs, having road shows Product development: Have currently a good product development process however, may aim for a more effective development process with lesser time and better outputs. Bringing in better designs may be of a great help.

CHAPTER 5: LEARNINGS