OPTIMIZE THE LEAD TIME IN SOURCING DEPARTMENT OF

THE BRAND

Dissertation submission in partial fulfilment

of the requirements for the degree of

Bachelor of Fashion Technology

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EN
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Submitted By
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CHANDNI NAIR
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BFT/19/214
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Under the Guidance of

Mr S Prabhakar, Assistant Professor, DFT & Dr Raghuram
Jayaraman, Professor, DFT

Department of Fashion Technology

National Institute of Fashion Technology, Chennai
“OPTIMIZE THE LEAD TIME IN SOURCING DEPARTMENT OF
THE BRAND”

Bonafide record of work done by

CHANDNI NAIR (BFT/19/214)

Dissertation submitted in partial fulfilment of the requirements for the degree of

BACHELOR OF FASHION TECHNOLOGY

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NATIONAL INSTITUE OF FASHION TECHNOLOGY

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(Ministry of Textile, Government of India)

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DEPARTMENT OF FASHION TECHNOLOGY

CHENNAI-600113

Certified that the candidate was examined in the viva voce examination held on
25/5/2023.

(Internal Examiner) (External Examiner)

 CERTIFICATE

National Institute of Fashion Technology, Chennai

Certificate of authorship and originality I, Chandni Nair, a Bonafide graduating student with Roll No
BFT/19/214 of NIFT, Chennai campus, hereby certify that the work in this Graduation Project Report
with title “Optimize the lead time in sourcing department of the brand” submitted by me for the
partial fulfilment of the UG degree in B.F.Tech, Batch 2019 - 2023, has neither previously submitted
for a degree/diploma nor has it been submitted as a part of requirements for a degree/diploma by self
or anyone else, except as fully acknowledged within the text of this report.

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I also certify that the report has been originally and completely authored by me under the
supervision/guidance of my project guide/mentors allotted by the Institute/Industry. Any help that I

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have received in my graduation project and the preparation of the same has been acknowledged.
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In addition, I certify that all the creative and research works / intellectual content presented in this
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document are original and all information/data sources, textual, numerical and visual nature, other
literature used are indicated and due credit has been given in the report.
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Certified by: Verified by

Chandni Nair Mr S.
Prabhakar
BFT/19/214 Assistant
Professor
Department of Fashion
Technology
 Certificate

This is to certify that Ms. Chandni Nair from NIFT, Chennai has done her Internship Project with

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Reliance Retail Ltd. under the guidance of Nitin Rathi from 23-01-2023- 12-05-2023 on the project
titled “Optimize the lead time in sourcing department of the brand.”.

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She is sincere, hard-working, and showed a keen interest in her work during the course of the
internship project.
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We wish her well in her future endeavors.

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Thanking You,
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Yours faithfully,
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For Reliance Retail Limited

for

Ms. Shathi Sharma

HR-Head
 DECLARATION

I hereby declare that the project work entitled “Optimize the lead time in sourcing
department of the brand” submitted to National Institute of Fashion Technology

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Chennai, is a record of an original work done by me under the guidance Mr S Prabhakar,

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Assistant Professor, DFT & Dr Raghuram Jayaraman, Professor, DFT, NIFT Chennai.
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The project work is in partial fulfilment of the requirements for the award of the degree
of Bachelor of Fashion Technology. The results embodied in the thesis have not been
submitted to any other University of Institute for the award of any degree or diploma.
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Due credits have been given to Researchers whose work was taken as an inspiration.
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Chandni Nair
BFT/19/214

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 ACKNOWLEDGEMENT

I would like to thank everyone who has been a constant support and guided me
throughout the completion of project. I would like to thank Prof. Dr. Anitha
Manohar, Director, National Institute of Fashion Technology, Chennai for
giving me this opportunity to gain knowledge and experience about the retail
industry.

I express my sincere gratitude to Mr. S. Prabhakar, Associate Professor, CC-

BFT and my mentor for his guidance, motivation and support to complete my

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project successfully. I express my sincere gratitude to Mr. Raghuram
Jayaraman, Professor, Department of Fashion Technology, Chennai, my co-

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mentor for his guidance, motivation and support. I would like to express my
gratitude to our faculties at Department of Fashion Technology, Chennai for
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their support.
I would like to express my deep gratitude to Mr Nitin Rathi, Sr Product
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Manage, Reliance retail for his mentorship and support throughout the project. I
am also immensely thankful to Ms. Shrutika Agarwal, Product manager for her
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guidance and support for successful completion of the project.

I would like to thank Ms. Divya Jyoti and Ms Jyostna, HR Reliance retail for
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providing me with this opportunity and for their cooperation and encouragement
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throughout the project. I would like to thank all the employees in Reliance retail
who has helped with me for the completion of the project.
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I would like to thank my classmates and family members for their immense
support throughout this period.

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 TABLE OF CONTENTS

S.NO CONTENTS PG.NO

1 About the company 8

2 Introduction & Project 21

3 Literature review 25

1. Retail industry 26

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2. Fashion Retail industry 26
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3. Buying and design 26
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4. sSourcing 27
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5. Lead time 30
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6. Costing 31
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4 Meth odology 33

5 Result & Implementation 48

6 Con clusion 54

7 Ref erences 55

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 LIST OF TABLE

FIQ.NO CONTENTS PG.NO

1 Delivery timeline Closure 29

2 Standardizing costing 31

3 T&A Calendar 37

4 Fabric Quality 51

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5 Sampling process 52

6 T&A Calendar of OR12089 (before)

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7 T&A Calendar of OR12089 (after) 53
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 LIST OF IMAGES

FIQ.NO CONTENTS PG.NO

1 Reliance Values 10

2 Brand portfolio 19

3 Hyperloop home page 26

4 Product homepage 27

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5 Sample request 27

6 Costing for T-shirt

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7 Input grid of style A 34
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8 Solution steps of the style A 35

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9 Critical activities of 30 styles 46

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CHAPTER 1
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ABOUT THE COMPANY
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1.1 RELIANCE GROUP
Reliance group was founded by Dhirajlal Hirachand Ambani (1932-2002) and is
India’s one of the largest conglomerate headquartered in Mumbai, India.
Reliance was headed by his sons after his death until they decided to split
Reliance Industries in December 2005. This is when the Reliance Anil
Dhirubhai Ambani Group (ADAG) was formed headed by Anil Ambani who
got responsibility of the Reliance Infocomm, Reliance Energy, Reliance Power,
Reliance Infrastructure, Reliance communications, Reliance Capital, Reliance
Naval& Engineering, Reliance Defence, Reliance Health Insurance Limited and
Kokilaben Dhirubhai Ambani Hospital. Mukesh Ambani took up the
responsibility of Reliance Industries Limited (RIL) which was co-founded in
1960 as Reliance Commercial Corporation by his father. Dhirubhai Ambani and
his cousin Champaklal Damini & Indian Petrochemicals Corporation Ltd. As of

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current, Reliance has more than 123 subsidiary companies and more than 10
associate companies. RIL majorly branches as Reliance Retail, Reliance Life

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sciences, Reliance Institute of Life sciences, Reliance Logistics, Reliance
Clinical Research Services, Reliance Solar, Relicord, Reliance Jio Infocomm
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Limited, Reliance Industrial Infrastructure Limited, LYF, Network-18, Reliance
Eros Productions LLP.
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1.2 RELIANCE INDUSTRIES LIMITED

RIL has a long profile of brands associated with and is the first Indian retailer to
cross US$10 billion in revenue Reliance Industries Limited is a Fortune 500
company and the largest private-sector corporation in India. Their motto
“Growth is Life” aptly captures the ever-evolving spirit of Reliance. They have
evolved from being a textiles and polyester company to an integrated player
across energy, materials retail entertainment and digital services. They have
achieved global leadership in many of their businesses. Reliance’s products and
services portfolio touches almost all Indians on a daily basis across economic
and social spectrums and they aim at building platforms that will herald the
Fourth Industrial Revolution and will create opportunities and avenues for India
and all its citizens to realise their true potential.

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Figure 1: Reliance Values

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1.3 RELIANCE RETAIL
VISION
To be the most admired and successful organised retail company in India that
enhances the quality of life of every Indian.

MISSION:
• create value for all stakeholders
• grow through innovation
• lead in good governance practices
• use sustainability to drive product and enhance operational efficiencies
• ensure energy security of nation
• foster rural prosperity

CORPORATE SOCIAL RESPONSIBILITY

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Reliance retail is focusing on profit as well to return a part of it to the general
public. Following are some of the measures taken by the company in
accordance for benefiting the society:
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• Reliance Retail aims at recruiting people from the underprivileged
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community in society.
• To secure best quality, Reliance Retail is specially sourcing fresh
agricultural produce from a large number of agriculturists from villages
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through Collection Centers. As a result, company supply chain has

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directly linked to the poor farmers thus providing them a guaranteed

market and reduction of transportation cost, training them with best
agricultural practices for the better yield.
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• The company has embraced “farm to fork” model which means it is

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getting the products directly from the agriculturists by offering them very
sensible prices and thus no middlemen are involved. They also provide
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information about the market price and which crop needs to be chosen so
that the farmers get good profit. Farmers are given with technical help
and knowledge about quality of
seeds and composts.

MEGATRENDS
• Integrating Value Chain: Connecting suppliers, small and large, to B2B
and B2C customers through a pan-India ecosystem
• Digitisation: Connecting physical and digital spaces, with endless aisle
kiosks and multiple payment modes with real-time analytics support

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 • Bridging Urban-Rural Divide: Bringing quality products at affordable
prices to smaller tier cities, meeting demand gap and offering
employment

The dimensions of the business span across 11,784 physical retail stores across
7,000+
towns and cities, direct to consumer, Digital commerce channels and B2B
channels serving millions of Indian consumers across undeserved markets.
Reliance Retail has a portfolio of over 45 international brands that spans across
the entire spectrum of luxury, bridge to luxury, high–premium and high–street
lifestyle.

Reliance food and Grocery Retail

Serving the food and grocery category Reliance Retail operates

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• Reliance Fresh,
• Reliance Smart and
• Reliance Market stores.
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Reliance Fresh
Reliance Retail started its journey in 2006 with the opening of its first Reliance
Fresh store. Today Reliance Retail operates 621 Reliance Fresh and Reliance
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Smart stores and sells over 200 metric tonnes of Fruits and over 300 metric
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tonnes of Vegetables every day.

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Reliance Market
Reliance Retail opened the first Reliance Market in 2011 and since then
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Reliance Market has grown rapidly with 52 stores serving over 4 million-
member partners.
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Reliance Digital
Reliance Retail has the distinction of operating the largest consumer electronics
store chain in India through a network of over 8,000 Reliance Digital and jio
stores.

Reliance Digital offers over 200 national and international brands offering a
widest assortment of products spanning across

• Audio & Video products,

• Digital Cameras, Durables like Air Conditioners,
• Refrigerators, Washing Machines, Microwave Ovens,
• Water Purifiers, Kitchen and Home Appliances,
• Gaming Consoles & Games, Computers, Laptops,
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 • Tablets & Peripherals, Mobile and Fixed line instruments as well as a
wide range of accessories and new-age gadgets across all major product
categories.

Fashion & Lifestyle Category

Fashion & lifestyle category it operates

• Reliance Trends,
• Trends Women,
• Trends Man,
• Trends junior,
• Project Eve,
• Reliance Footprint,
•

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Reliance Jewels and
• AJIO.com

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in addition to a large number of partner brand stores across the country.
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Reliance Jewels currently has a consolidated presence of 93 showrooms and
110 SIS across 105 cities in India.
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Reliance Trends
Trends is the flagship store concept of Reliance Retail democratising fashion for
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millions of Indian consumers.

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Acceptance of Trends concept by its consumers has further helped it to nurture

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engaging store concepts of Trends Woman, Trends Man, Trends Junior and
Trends Footwear. Together, Trends is India’s largest fashion retail chain
operating over 1,400 stores. Trends predominantly sells own brand products,
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which constitute over 70% of its sales.

The core business model of Trends is dogged upon providing best and latest of
fashion trends to consumers at compelling price points backed by an integrated
value chain that ensures high quality products with optimisation from sourcing
till delivery of products to consumers.

This approach ensures early break-even for most Trends stores and contribute to
the overall profitability of the business. At the same time, a curated blend of
select third-party
brand offerings add to the choices and comparison for the consumers. Trends
has developed a robust portfolio of over 20 own brands such as

• Avaasa,
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 • DNMX,
• Netplay,
• Performax,
• Teamspirit, etc.
• to cater to diverse tastes and preferences of customers.

Today, many of these brands have an annual turnover of over Rs 500 crore
making them comparable to many national and international brands operating in
the market.

International Brands Partner

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Reliance Retail has a portfolio of over 45 international brands that spans across
the entire spectrum of luxury, bridge to luxury, high–premium and high–street
lifestyle.

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Reliance Retail operates over 682 stores for these international brands and
continues to partner with new and revered international brands. Reliance Retail
has emerged as the partner of choice for international brands and has established
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exclusive partnerships with many revered international brands such as Superdry,

Diesel, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark,
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Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless

Shoesource, Grand Vision and many more.
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AZORTE
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Reliance Retail has launched its premium fashion and lifestyle store AZORTE,
to compete directly with fast fashion brands Zara and H&M in India.
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Azorte will house the best of global trends and contemporary Indian fashion with
an original take on style ranging from western and Indian wear to footwear,
fashion accessories, home, beauty and more. The merchandise available in the
stores will be a combination of private labels created specifically for the
format. Azorte, a house of brands with a curated collection, is the latest addition to
Reliance Retail’s fashion and lifestyle portfolio that has adopted a multi-format
approach to cater to all consumer segments. Brands under Azorte includes Outryt,
Outryt Sports, Altheory, Altheory sports, Wotnot, Proearth, Samav, Svrnaa, etc.

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 BRAND PORTFOLIO

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Figure 2. i. Polymers
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Figure 2. ii. Petroleum Retail

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Figure 2. iii. Polyesters

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Figure 2. iv. Textile Owned Brands

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Figure 2. v. Retail Owned Brands
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Figure 2. vi. In-Store Brands

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Figure 2. vii. Digital services

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Figure 2. viii. Partnership with Reliance retail

Figure 2: Brand portfolio

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CHAPTER 2
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INTRODUCTION & PROJECT DETAILS
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 INTRODUCTION

The India Retail Industry is the largest among all the industries, accounting for
over 10 per cent of the country’s GDP and around 8 per cent of the
employment. The Retail Industry in India has come forth as one of the most
dynamic and fast paced industries with several players entering the market.
The Indian garment retail industry is a significant sector within India's retail
landscape. It encompasses the buying and selling of clothing, apparel, and
accessories through various retail channels such as brick-and-mortar stores, e-
commerce platforms, and online marketplaces.

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Reliance Retail, a subsidiary of Reliance Industries Limited, is one of the largest
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retail chains in India, with a presence in various sectors, including fashion and
apparel. The company's entry into the garment retail industry has had a
considerable impact on the sector, both in terms of opportunities and challenges.
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Here are some key ways in which Reliance Retail has impacted the garment
retail industry in India:
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• Increased Competition
• Expansion of Organized Retail
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• Improved Supply Chain

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• Private Label Brands

• Online Retail
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• Investments in Technology

In conclusion, Reliance Retail's entry into the garment retail industry has had a
significant impact, forcing existing players to adapt and innovate to remain
competitive. The company's investments in supply chain infrastructure, private
label brands, and technology have raised the bar for the industry and set new
standards for customer service and satisfaction. While there are challenges, the
growth and development of the garment retail industry in India is likely to
continue, with Reliance Retail playing a significant role in shaping its future.

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The project focuses on the sourcing procedure at Reliance Retail, analyses the
issues encountered, and offers suitable solution.
Reliance identified the gap of a fast fashion brand in their organisation and
created a brand, but the lead time for their products were 100-120days which is
more compared to competitor brands. Reducing them is important to keep up
with competitor brands.
Fast fashion refers to a business model and approach to clothing retail that
focuses on quickly producing and delivering affordable, trendy fashion
garments to consumers. It is characterized by rapid turnaround times, frequent
product launches, and low prices.
Reduced lead time in the garment retail industry can bring several benefits and

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address various challenges. The rise of fast fashion has changed consumer
expectations. Customers now expect new and trendy clothing options to be

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available quickly. Reducing lead time enables retailers to respond rapidly to
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changing fashion trends, introduce new products faster, and stay ahead of the
competition. Reduced lead time can be a key differentiator in the competitive
landscape. Retailers that can deliver products faster gain a competitive edge,
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attracting more customers and increasing market share.

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In this project the lead time for the styles (knits) are reduced by using the
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critical path method. The TORA software is used for critical path method. The
data from previous season’s Time and Action was observed and entered into
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TORA and the critical path was identified after which the non-value-added
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check points were reduced.

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PROBLEM STATEMENT
The brand’s styles has a lead time of 100-120 days (60 days for sourcing department and 60
days for sewing department ), which is long when compared to other fast fashion businesses,
so reducing the lead time is essential to compete and the need for a standardized.

OBJECTIVES:
1. To study the processes in the sourcing department.
2. To identify the issues in sourcing department and providing suitable solutions.
3. To reduce the lead time of styles.

NEED OF PROJECT:
Fast fashion brand lead time refers to the time it takes for a fast fashion company to design,
produce, and deliver their products to the market. Lead time can vary depending on various

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factors such as the complexity of the design, production processes, supply chain efficiency,
and geographical location.

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Fast fashion brands are known for their ability to quickly respond to changing fashion trends
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and deliver new products to consumers at affordable prices. They typically operate on shorter
lead times compared to traditional fashion brands, aiming to minimize the time between the
conceptualization of a product and its availability in stores or online.
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While lead times can vary between fast fashion brands, they often prioritize speed and agility
in their supply chains to stay competitive. Some fast fashion brands have been able to achieve
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lead times as short as a few weeks, allowing them to introduce new styles and collections
more frequently throughout the year.
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The lead time for the brand is between 100 and 120 days, which is comparable to that of
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conventional fashion businesses. With a 120-day lead time, the brand will be unable to
compete with other fast fashion brands. So, in order to compete with other brands, the lead
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time must be reduced.

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CHAPTER 3
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LITERATURE REVIEW
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LITERATURE REVIEW

3.1.RETAIL INDUSTRY
Retail Industry, one of the fastest changing and vibrant industries in the world, has
contributed to the economic growth of many countries. Retailing involves a direct interface
with the customers and the coordination of business activities from end to end- right from the
concept or design stage of a product or offering, to its delivery and post-delivery service to
the customer. The industry has contributed to the economic growth of many countries and is
undoubtedly one of the fasted changing and dynamic industries in the world today.

3.2.FASHION RETAIL INDUSTRY

Fashion retail industry includes all aspects of fashion - clothes, shoes, bags, accessories. The

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fashion retail industry plays an important role in what we wear, what we look like and how
we live, with its increasingly sophisticated consumer demanding more. Fashion retailing
activities need strategic planning, and analytical methodology viewed from several

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perspectives; the consumer, the competition, the category and the retail company.
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The fashion retail industry is a highly competitive and dynamic sector that is constantly
evolving. The industry is characterized by a large number of players, ranging from small
independent retailers to large multinational corporations. After the market recovered in 2021
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from the effects of the coronavirus (COVID-19) pandemic, high inflation in 2022 posed more
difficulties for the global apparel industry. The cost of production rose, and consumer
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confidence fell. The revenue of the global apparel market was calculated to amount to 1.53
trillion U.S. dollars in 2022, a slight decrease on the previous year. According to Statista
revenue was forecast to increase in 2023, to more than 1.7 trillion dollars.
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3.3. BUYING AND DESIGN

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The buyers are responsible for overseeing the development of a range of products aimed at a
specific type of customer and price bracket. The designers manage the design process from
conception through to final styling. They also conduct market research to identify the new
trends, fabrics and accessories and create the raw design data. They select the fabric and trims
and create the production sketches for the sample developments. The Range architecture is
created and they come up with product category with specific MRP range.

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3.4.SOURCING
Sourcing refers to a set of business processes and activities by which businesses acquire and
deliver components or fully finished products from outside the organization [Ha-Brookshire
2015].

3.4.1 RESPONSIBILITIES OF THE SOURCING TEAM

The responsibilities of the sourcing team are as follows:
1. Product handover from design and buying team
2. Vendor allocation & Vendor working capacity
3. Cost negotiation
4. Delivery timeline closure
5. T & A follow-up

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3.4.1.1 Product handover from design and buying team

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Once the design team has developed the design sample, the lab dips are approved and the
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colorways are decided after which the buying team decides the purchase order quantity, after
the design and the quantity is approved, then the style is handed over to the sourcing team.
Before the handover the tech packs are updated with the fabric composition, trims required
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and all the other requirements for the sample. The style is then handed over to the sourcing
team all the required details.
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Figure 3. Hyperloop home page

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 Figure 4: Product homepage

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The different details regarding the style like the colorways, measurement charts, artwork

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details, the sample requests, etc. can be viewed on hyperloop.
Once the style is handed over to the sourcing team the sampling process starts after the cost is
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closed.
The show back sample is prepared after handover from buying and design team to sourcing
team after which the samples are given to the technical design team. The technical design
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team then points out the required changes to be made in the sample and upload the comments
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for the vendors notice. The fit samples are then sent once the show back sample is approved
which the technical design team reviews and the required changes to be made will be notified
to the vendor. After that the Pre-Production sample is to be sent and the technical design team
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reviews the sample and the changes to be made are notified to the vendor. After the approval
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one last sample is received which is the Top of Production (TOP) sample, which is send
before the shipping of the bulk order after the approval of which the bulk order is shipped out
to all the stores.
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Sample requests are made in hyperloop by the vendors.

Figure 5: Sample requests

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3.4.1.2 Vendor allocation & Vendor capacity working calculation
The sourcing team must find suitable vendors who provides best performance in terms of
delivery, quality and costing. The vendors are assessed based on a number of factors,
including input margin percentage (IM%), on-time delivery, total capacity, offered capacity,
the brand they are manufacturing for, and other Reliance brands for which they are
manufacturing.
The vendor working capacity is calculated using the number of machines they offered for the
manufacturing of the style, the total number of machines they have and the number of pieces
they manufacture.

3.4.1.3 Cost negotiation

Once the samples are approved , the sourcing team starts with the costing. The costing
includes various factors like the fabric cost (which will be 60& of the FOB), the trims cost

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which includes the trim cost, sewing cost and the packing costs, the CMT,
Print/Embroidery/Washing costs and the BOM cost is calculated after which the Rejection,
overhead, testing, transportation cost are added after which the FOB (Freight on board) cost

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is calculated. The FOB cost should be 33% of the MRP cost ideally.
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A rough costing is done when the handover from the design and buying team is done. The
sourcing team comes with various cost cutting parameters for the style, A rough estimation of
the fabric cost, trims cost, etc. should be made to negotiate with the vendor. The sourcing
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must try to get lower costs than estimated cost while negotiating with the vendor so that
maximum profits can be achieved from each style.
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3.4.1.4 Delivery timeline closure

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NON LLT (Long lead time) LLT (Long lead time)

KNITS 90 120-135
WOVEN 90 120-135
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DENIM - 120-150
SWEATER - 135-180
Table 1: Delivery timeline Closure
3.4.1.5 T & A follow-up
The time and action calendar has the following steps:
1. Order confirmation
2. Lab dips and fit sample approval
3. First of bulk
4. Fabric In-house
5. Trims In-house
6. Pre-production sample approval
7. Fabric package test
8. Garment package test
9. Plan cut date
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 10. Stitching
11. Finishing
12. Packing
13. Final Inspection
14. Advance shipping notification (ASN)
15. Goods received notification (GRN)

For example: If the lead time is 120 days, once the order is confirmed, the lab dips which is a
fabric sample made to match the color standards of the designer is send for approval within
15 days of order confirmation. The first of bulk (FOB) sample is send within 15 days of lab
dip approval. Then fabric and trims are inhouse after 30 days of FOB, then the Pre-
Production sample is sent 15 days after the fabric and trims are inhouse. The fabric package
test, garment package test, the plan to cut date, stitching and finishing are done within 55
days after PP sample approval. The garments are packed on the 100th day and the Final
inspection is done three days after. The advance shipping notification is taken after the Final

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inspection after which Goods received notification is created.

3.5.LEAD TIME
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Li [1999] defined lead time as the time duration that is between the act of receiving an order
from buyer and delivering the ordered goods. The idea of lead time is further explained by
Marc [1999]. He discussed about customer lead time and manufacturing lead time. There is
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distinction between these two concepts. Customer lead time is the time span between the
order placement by customer and received of the ordered goods. Whereas manufacturing lead
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time is the total time duration of raw materials input to production process and the final
operation to deliver the output.
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Consumers are now more fashion-conscious and want to promptly acquire the latest styles,
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which puts pressure on the retailer to satisfy the consumers’ needs. Consequently, retailers
put pressure on suppliers to deliver fashion products with even shorter lead times (Barnes
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and Lea-Greenwood, 2006). Since there is an increase in the pace of fashion and consumer
demand, the time to react to emerging trends has shortened, which impacts the apparel
buying cycle and major fashion retailers’ forecasts and planning, especially when these
follow a fast fashion business model.
A season is divided into 4 parts, HIT1, HIT2, HIT3 & HIT4 based on their INDC date

3.6.COSTING

For costing in mid economy brands, if the volume/color is higher than 8k - 10k then the
below approach is followed to standardize costing and minimize optimization. First the styles
are combined based on their fabric quality, then the color of the garment, the styles with
similar pattern are combined and then the quantity is decided.

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 STYLE NO&FABRIC COLOUR PATTERN QUANTITY
A: 100% COTTON SJ 180GSM BLACK TSHIRT 10K

A:100% COTTON SJ 180GSM LILAC TSHIRT 10K

B: 100% COTTON SJ 180GSM BLACK TSHIRT 10K

B:100% COTTON SJ 180GSM WHITE TSHIRT 10K

C:100% COTTON SJ 180GSM WHITE TSHIRT 10K

C:100% COTTON SJ 180GSM GREY TSHIRT 10K

D:100% COTTON SJ 180GSM GREY TSHIRT 10K

D:100% COTTON SJ 180GSM FUSCHIA TSHIRT 10K

E:100% COTTON SJ 180GSM FUSCHIA TSHIRT 10K

sE:100% COTTON SJ 180GSM LILAC TSHIRT 10K

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F: 100% COTTON SJ 180GSM BLACK DRESS 10K

F:100% COTTON SJ 180GSM LILAC

N DRESS 10K
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G: 100% COTTON SJ 180GSM BLACK DRESS 10K

G:100% COTTON SJ 180GSM WHITE DRESS 10K

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H:100% COTTON SJ 180GSM WHITE DRESS 10K

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H:100% COTTON SJ 180GSM GREY DRESS 10K

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I:100% COTTON SJ 180GSM GREY DRESS 10K

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I:100% COTTON SJ 180GSM FUSCHIA DRESS 10K

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J:100% COTTON SJ 180GSM FUSCHIA DRESS 10K

J:100% COTTON SJ 180GSM LILAC DRESS 10K

Table 2: Standardizing costing

For the above styles the base body pattern will be same so the average fabric consumption is
250gm/garment. So, for 100k garments the fabric requirement will be 27T and 5T/colour.

Costing is done style wise and various factors like sewing cost, fabric cost, packaging cost,
etc are included in the cost.
The vendor sends their open cost after which the product manager analyses the costs and
negotiates with the vendor to achieve the target cost.
The product manager does a rough costing for the styles after it is handed over from the
buying and design team. According to the cost the MRP is finalised.
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Figure 6: Costing for T-shirt

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CHAPTER 4
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METHODOLOGY
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4.METHODOLOGY:
The project was carried out for the knits department of the brand where the products are
sweaters, skirts, cardigans, dresses, etc. The processes in the T&A calendar where observed
and the dates where recorded. Critical path method is used to determine the most efficient
sequence. The software TORA was used, where the data was entered and the results were
obtained. Based on those results solutions were provided and implemented for the upcoming
styles.

Critical Path method

The Critical Path Method (CPM) is a project management technique used to determine the
most efficient sequence of activities necessary to complete a project on schedule. It helps
identify the critical path, which is the sequence of activities that must be completed in a

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specific order and without delays in order to meet the project's deadline.
Here are the key steps involved in using the Critical Path Method:
•
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Identify Activities: Break down the project into individual activities or tasks that need
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to be completed. Each activity should have a clear start and end point.
• Determine Dependencies: Determine the dependencies between activities, i.e., which
activities need to be completed before others can begin. Dependencies can be of
different types, such as finish-to-start (Activity B cannot start until Activity A is
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finished) or start-to-start (Activity B can start as soon as Activity A starts).

•
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Estimate Duration: Assign a duration to each activity, representing the amount of time
it will take to complete. These estimates can be based on historical data, expert
judgment, or other estimation techniques.
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• Create a Network Diagram: Represent the activities and their dependencies using a
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network diagram, also known as a precedence diagram. This diagram visually shows
the sequence of activities and their relationships.
•
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Calculate Early Start and Finish Times: Starting from the beginning of the project,
calculate the early start and finish times for each activity. The early start time is the
earliest possible time an activity can start, considering its dependencies and the
durations of preceding activities. The early finish time is the earliest possible time an
activity can be completed.
• Calculate Late Start and Finish Times: Starting from the project's deadline, calculate
the late start and finish times for each activity. The late start time is the latest possible
time an activity can start without delaying the project's completion. The late finish
time is the latest possible time an activity can be completed without delaying the
project.
• Determine the Critical Path: The critical path consists of the activities with zero slack
or float, meaning any delay in these activities will directly impact the project's overall
duration. Activities on the critical path have the longest total duration.
• Monitor and Manage the Critical Path: Throughout the project, monitor the progress
of activities on the critical path closely. Any delays or changes in these activities can

33
 potentially affect the project's timeline, and adjustments may need to be made to keep
the project on track.
By using the Critical Path Method, project managers can identify the activities that are
most critical to the project's success and allocate resources accordingly. It also helps in
determining the earliest and latest possible project completion times, enabling better
scheduling and resource management decisions.
TORA is a software application primarily used for operations research and optimization
purposes, rather than project planning specifically. TORA stands for "TOol for ORiented
Analysis" and is a powerful tool for solving mathematical models and performing various
types of analyses.
The TORA software provides a user-friendly interface to input mathematical models and
equations, solve optimization problems, and analyse the results. It is often used in fields
such as operations research, management science, supply chain management, and
decision analysis.

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The data from Time and action calendar of 30 styles was analysed using Tora to find the

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critical path, the duration was entered based on the dates collected from different clusters.
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Figure 7: Input grid of style A

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Figure 8: Solution steps of the style, the critical paths are highlighted in red.
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T&A CALENDAR OF STYLES OF SS23 &AW23

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Table 3: T&A Calendar

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Figure 9. i.Style 1

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 Figure 9. ii. Style 2

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Figure 9. iii. Style 3

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Figure 9. iv. Style 4

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 Figure 9. v. Style 5

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Figure 9. vi. Style 6

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Figure 9. vii. Style 7

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 Figure 9. viii. Style 8

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Figure 9. ix. Style 9

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Figure 9. x. Style 10

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 Figure 9. xi. Style 11

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Figure 9. xii. Style 12

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Figure 9. xiii. Style 13

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 Figure 9. xiv. Style 14

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Figure 9. xv. Style 15

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Figure 9. xvi. Style 16

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 Figure 9. xvii. Style 17

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Figure 9. xviii. Style 18

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Figure 9. xix. Style 19

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 Figure 9. xx. Style 20

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Figure 9. xxi. Style 21

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Figure 9. xxii. Style 22

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 Figure 9. xxiii. Style 23

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Figure 9. xxiv. Style 24

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Figure 9. xxv. Style 25

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 Figure 9. xxvi. Style 26

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Figure 9. xxvii Style 27

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Figure 9. xxviii Style 28

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 Figure 9. xxix Style 29

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Figure 9. xxx Style 30

Figure 9: Critical activities of 30 styles

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5.RESULTS & IMPLEMENTATION:
Based on the Tora software analysis, it was determined that the lab dip approval and
fabric & trims in-house processes were identified as non-critical paths. By reducing the
number of days required for these processes and obtaining lab dip approvals before the
handover, it is possible to effectively reduce the overall lead time in the retail garment
industry.
After observing the data from the sampling process, it becomes apparent that a
considerable number of delays arise as a result of challenges with courier services and
frequent sample rejections. Addressing these issues and streamlining the associated
processes is essential to prevent extensions in lead time and presents an opportunity to
actually reduce the overall lead time.
SOLUTIONS SUGGESTED:

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• Lab Dip Approvals:
o The production process can be expedited and costs reduced by prior lab
dip approval. It reduces the possibility of color-related manufacturing

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concerns, such as delays, rework, or rejections. The sourcing team can
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save future manufacturing delays and related expenses by spotting and
fixing colour mismatches early on.
o The design and purchasing team may maintain tighter quality control over
the production process by prioritising lab dip approvals. They can make
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sure that the fabric and colour requirements are met, and they can make
any necessary alterations or revisions early on to maintain product quality.
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o Lab dip approvals give the sourcing team a chance to evaluate the
capabilities and performance of their vendors. If a supplier repeatedly falls
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short of the required colour criteria, it can be a sign of a quality problem or

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a sign that the supplier needs to be evaluated and improved.

o For garments to be sold successfully, accurate colour depiction is essential.
The retail clothing business may produce goods that stand up to consumer
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expectations by gaining lab dip approvals, increasing consumer happiness

and fostering brand loyalty.
Getting lab dip approvals prior to handing over to the sourcing team offers advantages
like colour accuracy, time and money savings, better communication, quality control,
supplier management, customer satisfaction, and regulatory compliance. It makes it
possible for production procedures to run more smoothly, reduces risks, and guarantees
that the finished clothes meet the desired colour and quality criteria. It also reduces the
lead time by 10-15 days.

• Pre-order of Fabrics:
o Pre-ordering fabric in the retail garment industry can be an effective
strategy to reduce lead time and gain several benefits. By pre-ordering
fabric, retailers can ensure that the necessary materials are available in
advance when the production process begins. This reduces the time
47
 required to source fabric and minimizes delays in production, leading to a
shorter overall lead time.
o According to the study Fast and ultra-fast fashion supply chain
management: an exploratory research by Lucas Ramos Camargo, Susana
Carla Farias Pereira, and Marcia Regina Santiago Scarpin, Benetton, one
of the biggest European clothing manufacturers, is renowned for its dyeing
postponement strategy, whereby Benetton delays dyeing the entire
inventory until just before selling to the final consumers, based on the
newest fashion trends. The time it takes to produce fabric or yarn in-house
can be cut in half by using a similar technique, which entails ordering yarn
before the start of a season and dying it once the colourways are decided.
o Analyse previous season's fabric quality: Evaluate the fabric quality and
performance of styles from the previous season. Identify any issues or
areas for improvement, such as durability, colour fading, or shrinkage.
This analysis will help you make informed decisions when selecting
fabrics for the upcoming season.

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o Decide fabric to be pre-ordered: Based on the analysis of the previous
season's fabric quality and the anticipated demand for the upcoming

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season, determine the fabrics that are likely to be used in the majority of
styles. Pre-order these fabrics from trusted suppliers in advance to secure
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their availability and minimize lead time.
o Study season trends and finalize colourways: Conduct comprehensive
research and study the latest fashion trends for the upcoming season.
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Analyse colour forecasts, consumer preferences, and market demands.

Based on this analysis, finalize the colourways for your garments.
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o Dye fabric after studying season trends: Once the season trends and
colourways are finalized, proceed with dyeing the pre-ordered fabrics
accordingly. By aligning the dyeing process with the finalized
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colourway’s, you eliminate the need for colour corrections or re-dyeing,

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saving significant time in the production cycle.

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Fabric Quality No. of styles

95% Cotton 5% Spandex Striper Jersey 190 Gsm 2
100% Cotton Bio wash Interlock 280 gsm 1
100% Cotton Bio wash Pique 250 gsm 2
100% Cotton flat knitted 12 GG 4
100% Cotton flat knitted 16 GG 4
100% Cotton French Terry 200 GSM 2
100% Cotton French Terry 260 GSM 2
100% Cotton S/J 160 gsm 18
100% Cotton S/J 180 gsm 31
100% Cotton S/J 260 gsm 2
100% Cotton S/J YD 160 gsm 8
100% Cotton Slub jersey 160 gsm 4
100% Cotton Slub Jersey 180 gsm 15
100% Cotton YD S/J 180 gsm 6
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 100% Polyester Pleated Mesh 50 gsm 4
100% Viscose Flat knitted 14GG 8
1x1 rib 100% Cotton 190 gsm 10
1x1 rib 95% Cotton 5% Spandex 240 gsm 16
1x1 rib 97% Cotton 3% Spandex 170 gsm 12
2x1 Pique and miss combination rib seamless 92% Polyamide 8% Elastane
4
28GG
2x1 rib 97% Cotton 3% Spandex 260 gsm 46
2x1 Rib Seamless 91% Polyamide 9% Elastane 28GG 4
2x1 Rib Seamless 92% Polyamide 8% Elastane 28GG 12
2x2 rib 96% Cotton 4% Spandex 40's 210gsm 4
2x2 rib 98% Cotton 2% Elastane 260 gsm 20
3x1 rib 98% Cotton 2% Elastane 240 gsm 3
4x2 rib 95% Cotton 5% Elastane 280 gsm 4
4x2 Rib Seamless 98% Nylon 2% Elastane 28GG 4
52% Cotton 48% Modal S/J 160 gsm 1

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60% Cotton 40% Polyester Waffle knit 280 gsm 2
62% Cotton 35% Polyester 3% Lycra

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Drop needle rib 2
200 Gsm
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65% Polyester 30% Rayon 5% Spandex YD Drop needle rib 200 gsm 9
69% Polyester 28% Viscose 2% Nylon 1% Elastane flat knitted Jersey 12gg 8
80% Cotton 20% Polyester Interlock 240 gsm 25
84% Viscose 13% Nylon 3% Elastane Flat knitted Jersey 12gg 12
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88% Cotton 12% Polyester French Terry 270 gsm 20

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88% Cotton 12% Polyester French Terry 280 gsm 4

93% Polyester 7% Spandex, Scuba 250 gsm (Bio silicon platinum finish) 4
95% Cotton 5% Elastane Drop Needle rib 300 gsm 6
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95% Cotton 5% Elastane rib 200 gsm 4

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95% Cotton 5% Elastane S/J 180 gsm 8

95% Cotton 5% Spandex Crepe 190 gsm 4
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95% Cotton 5% Spandex S/J 180 GSM 2

95% Cotton 5% Spandex S/J YD 180 GSM 2
95% Cotton 5% Spandex YD Drop needle rib 220 gsm 13
95% Polyester 5% Spandex ITY 200 GSM 9
95% Polyester 5% Spandex Mesh 55 Gsm 2
95% Polyester 5% Spandex Scuba Crepe 280 gsm 9
95% Viscose 5% Spandex, 200gsm 4
96% Cotton 4% Spandex S/J 190gsm 4
97% Cotton 3% Elastane Vertex viscose RIB 330 gsm 11
97% Cotton 3% Spandex knit rib with bio silicon 270 gsm 6
97% Polyester 5% Spandex Rise knit 200 gsm 6
97% Viscose 3% Elastane rib 280 gsm 12
98% Cotton 2% Polyester Jacquard Knit fabric S/J 160GSM 6
98% Nylon 2% Elastane 28 GG Straight & diagonal rib seamless 4
Grand Total 451
Table 4: Fabric Quality
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 o The styles were analysed, and it was found that the fabric quality most
commonly used included the following: 2x1 rib 97% Cotton 3% Spandex
260GSM, 100% Cotton S/J 180GSM, and 80% Cotton 20% Polyester
Interlock 240 GSM. Pre-ordering these fabrics accordingly will
significantly reduce lead time.

o By pre-ordering the identified fabrics in advance, you can ensure their

availability and minimize the time typically required for sourcing and
ordering materials. This proactive approach streamlines the production
process, allowing for faster garment manufacturing and reducing lead
time.

• Pre-ordering Trims:
o Pre-ordering trims, such as buttons, zippers, labels, and other accessories,
can be a beneficial strategy to reduce lead time in the retail garment
industry. It helps to shorten lead time, improve supply chain efficiency,

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maintain quality standards.
o When pre-ordering trims, it's important to consider effective trim

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management, precise forecasting, and maintaining positive relationships
with trim suppliers into account.
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• Streamline approval processes:
o Establishing efficient approval processes for each sampling stage, such as fit
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samples, pre-production samples, and final samples. Clearly communicate the

requirements for each approval and establish realistic timelines for feedback
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and decision-making.
o Furthermore, the issue of repeated sample rejections demands attention.
Conduct a detailed analysis to identify the root causes behind these rejections.
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It could be related to design inconsistencies, fit issues, quality concerns, or

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miscommunication during the sampling process. By addressing these factors,

it is possible to minimize the number of sample rejections, thereby reducing
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delays and avoiding the need for repeated iterations.

o Implementing measures such as enhanced communication channels, clear and
detailed technical specifications, and closer collaboration between designers,
pattern makers, and sample makers can help mitigate these issues. Regular
feedback loops and comprehensive quality control procedures should be
established to ensure that samples meet the required standards before
submission.
o Additionally, fostering strong partnerships with suppliers and maintaining
open lines of communication can contribute to a smoother sampling process.
By establishing clear expectations and timelines, as well as facilitating prompt
responses to queries or concerns, it becomes easier to streamline the entire
sampling workflow and minimize delays caused by communication gaps.
o By addressing the challenges with courier services and tackling the root causes
of sample rejections, the sampling process can be significantly improved. This
not only helps prevent lead time extensions but also presents an opportunity to
proactively reduce the overall lead time. A streamlined and efficient sampling
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 process ultimately enhances productivity, customer satisfaction, and the
competitiveness of the retail garment industry.

DATE Sample type Brand Style# Color Recd Qty Comments

3/24/2023 Fit cum PP Outryt Sports TF23FWAWOS3453 Navy 2 Rejected
3/24/2023 PP Outryt TF23FWWWOR3508 Maroon 2 Rejected
3/27/2023 PP Outryt Sports TF23FWAWOS3364 Lt Brown 2 Rejected
3/27/2023 PP Outryt Sports TF23FWAWOS9696 White 2 Rejected
4/2/2023 PP Outryt TF23FWWWOR11913 White 2 Rejected
4/4/2023 PP Outryt TF23FWWWOR1887 Fuschia 2 Rejected
4/5/2023 PP Outryt TF23FWWWOR3916 Black 2 Rejected
4/4/2023 PP Outryt TF23FWWWOR3986 Off white 2 Rejected
3/31/2023 Fit Outryt TF23FWWWOR9335 Black 1 Rejected
3/31/2023 Fit Outryt TF23FWWWOR12669 Purple 1 Rejected
4/3/2023 FIT Outryt TF23FWWWOR11250 Multi 1 Rejected
4/3/2023 PP Outryt Sports TF23FWAWOS9696 Off white 1 Rejected
4/4/2023 PP Fyre Rose TS23FRCANLIN03 Multi 1 Rejected
4/4/2023 PP Outryt TF23FWWWOR11342 Purple 1 Rejected
4/4/2023 PP ECKO EU4583 Charcoal 2 Rejected
4/4/2023 PP ECKO EU4596 Rust 2 Rejected
4/4/2023 Fit Outryt TF23FWAWOS12041 Fuschia 1 Rejected
Returned back due to incorrect
4/5/2023 Fit Outryt TF23FWWWOR14310 Rust 1
quality and measurement
4/5/2023 Colorway Outryt TF23FWWWOR3954 Grey 2 Rejected

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4/7/2023 PP ECKO EU4596 Rust 1 Rejected
4/7/2023 PP ECKO EU5114 Black 2 Rejected
4/24/2023 PP Outryt TF23FWMCOR4358 BLACK 2 Original not received
4/17/2023 PP ECKO EU5134 Black 2 rejected

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4/18/2023 FIT ECKO EU4607 White 1 Rejected
4/18/2023 FIT ECKO EU4609 White 1 Rejected
4/19/2023 ORIGINAL ECKO EU5134 CREAM 1 Original not received
4/19/2023 ORIGINAL ECKO EU5124 CREAM 1 Original not received
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4/24/2023 2ND PP OUTRYT TF23FWWWOR1887 FUSCHIA 2 original
4/19/2023 PP ECKO EU5136 Navy 2 Rejected
4/20/2023 Fit Outryt Teens TF23FKKGOR12601 White 2 Rejected
4/20/2023 PP OUTRYT TF23FWWWOR11913 White 2 Rejected
4/24/2023 FIT ECKO EU5158 BLACK 2 original
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Table 5: Sampling process

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IMPLEMENTATION:
By re-evaluating the workflow and introducing changes, the lab dip approval for the style
was successfully finalized before the handover to the sourcing team. This adjustment had a
significant impact on the lead time, reducing it from 105 days to 95 days. This reduction of
10 days showcases the effectiveness of the implemented process improvements.
By completing the lab dip approval earlier in the timeline, several advantages were realized.
It allowed the sourcing team to promptly proceed with their tasks, such as material sourcing
and production planning, as they now had the approved colour references. It also minimized
the potential delays and reworks that could arise if the lab dip approval were conducted at a
later stage.
The planned lab dip approval date for the style OR12089 is 30-May-23. The lead time is 105
days.

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Table 6: T&A Calendar of OR12089 (before)

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By completing the lab dip approval ahead of schedule, the lead time for the style has been
reduced to 95 days. The shorter lead time provides a competitive advantage, allowing the
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organization to respond quickly to market demands and enhance customer satisfaction.
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Table 7: T&A Calendar of OR12089 (after)

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The T&A calendar for style OR12089 shows that the Lab dip approval was done prior to the Base
Fabric Approval date. The lead time is reduced. This will be implemented in the upcoming seasons as
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well.

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6.CONCLUSION:

By carefully analysing the critical path and identifying the non-critical paths, namely fabric
inhouse, trims inhouse, and lab dip approval, we were able to streamline these processes and
achieve significant improvements in overall project efficiency.

By pre-ordering fabrics and trims based on previous season's analysis, we eliminated

unnecessary delays and ensured a smoother production flow. Additionally, by studying
season trends and finalizing colourways before initiating lab dip approvals, we reduced
iterations and rejections, further expediting the process.

The successful reduction in lead time serves as a testament to the effectiveness of the CPM
approach and highlights the importance of identifying and optimizing non-critical paths. By

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prioritizing and streamlining these areas, we were able to achieve greater efficiency, meet
project timelines more effectively, and enhance overall project success.

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Moving forward, the lessons learned from this project will be invaluable in guiding future
endeavors. The recognition and optimization of non-critical paths, such as fabric inhouse,
trims inhouse, and lab dip approval, will continue to play a pivotal role in our efforts to
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reduce lead time, improve productivity, and deliver high-quality garments to our customers in
a timely manner.
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In conclusion, through the application of the Critical Path Method and the identification of
non-critical paths, we have successfully reduced lead time and achieved notable
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improvements in project efficiency. This project serves as a foundation for continuous

improvement and reinforces our commitment to delivering exceptional products to the retail
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garment industry while meeting market demands and exceeding customer expectations.

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7.REFERENCES:

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[3] K. A, “An Empirical Study on Lead Time of Readymade Garments in Bangladesh,”

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[5]
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[18] H. Cho, “Florida State University Libraries Consumer Acceptance of Online
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