Merchandising Planning

&
Apparel Production Planning and Control

TEXTILE & APPAREL MERCHANDISING

TEM 409

MD. GOLAM SAROWER RAYHAN

LECTURER, TEM, BUTEX
 Lead Time
• The time between the initiation (starting) and completion (ending) of a
Process/Production process.

• Lead time is the amount of time that elapses between when a process
starts and its completion.

• Lead time is examined closely in manufacturing, supply chain

management and project management, as companies want to reduce the
amount of time it takes to deliver products to the market.
Lead Time for Different Processes
Lead Time for Different Processes
Lead Time for Different Processes
 Tentative Lead Time for other Processes

S. No. Process name Lead time details

• 15–25 days for the approval is must.
Prints, trims and
1. If complicated styles / special materials used lead time can be extended up to
accessories
30 days
• Most of the time performed by the third party (Buyer recommended
FPT (Fabric Performance
2. internationally accredited testing organisations)
test)
• 5 days to 1 week time can be provided as lead time

• Production department start date from the very next day (or 1 or 2 days)
Production
3. from the cutting department (based on production capacity)
department
• Based on factory efficiency and capacity the lead time for each department
(cutting, sewing, finishing) can be allotted by considering the shipment date
 Time & Action Calendar (TNA)

• Normally merchandisers prepare a plan of the order in a spreadsheet by listing down the
key processes in first column and planned date of action for each process in the next
column.

• This planning sheet is popularly known as time and action calendar (TNA).

• Once TNA calendar is made, then it can be easy for merchandiser list down their daily
'to do list' and taking it one by one.
 Requirement for making a TNA

In Order to make TNA Calendar Following information must be available:

i. Process flow of an order with the list of tasks which need to be performed.
ii. Lead time of activities, e.g. raw material lead time, sampling lead time, etc.
iii. Production capacity/lead time for getting finished fabric from dyeing
iv. Production capacity of cutting, sewing, washing and finishing.
v. For sewing – product wise capacity (production per day per style).
vi. Shipment date or Planned ex-factory date.
 Importance of TNA

It helps to streamline the pre-production activities.

▪ Easy understanding of order processing.

▪ Clear understanding of timelines given by buyer.
▪ It gives the clear idea about the minor or sub activities that need to perform during
order processing at different levels.
▪ TNA gives the idea about the status of running order and talks about delay or
deviation, if any
▪ TNA gives the dates at which raw material need to be sourced, in a way it helps to
optimize the inventory.
▪ TNA also reduces the risk of delivery delay
 Considering factors while making TNA
▪Production capacity of plant
▪Style type of merchandise
▪Festivals of manufacturing country
▪Holidays
▪Festivals of country from where raw material is imported
▪Logistics facilities
▪Lead time estimated by buyer
▪Style complications
▪Fabric and trims manufacturing complications
▪Buffer required for each department
▪Political stability of the country
▪Flexibility of freight forwarder
▪Response time from buyer at different stages
▪Lead times of various activities like L/C payment, custom clearance, etc.
▪Cut off dates for shipments (the date on which vessel will last receive goods before departure).
 Activities considered while making TNA

Pre-production Top of
Proto Sample Fit Sample Size Set Sample (PP) meeting and production
Sample sample
 Production Planning & Control
▪Production Planning and Control is the co-ordination of series of functions
according to a plan which will economically utilize the plant facilities and regulate
the orderly movement of goods through the entire manufacturing cycle from the
procurement of all materials to the shipping of finished goods at a predetermined
rate.

▪PPC Cycle has 3 phases-

Pre-planning Planning
Control Phase
Phase Phase
• product development • planning of the 4 M's • follow up
• sales forecasting • estimating • inspecting
• factory or plant layout • scheduling • evaluating
• equipment selection • dispatching
policy
 Functions of PPC

1.Job or Task Scheduling

2. Material Resource Planning (MRP-Inventory)
3. Loading production
4. Process selection & planning
5. Facility location
6.Estimating quantity and costs of production
7. Capacity planning
8. Line planning
9. Follow up and execution
 Garments analysis for production planning

During garments analysis we should check the following points very carefully:

 Garments observations,
 Key seam quality areas by operation, stitch & seam construction and SPI,
 Point out how many operations are involved in the particular item,
 Accordingly make a diagram of machine lay out,
 Point out the critical operation where we can expect the “bottle neck” during production,
 Considering bottle neck allow extra machines for that operation to keep production flow
as you expect (Line Balancing),
 Find out the input operation and out put operation of garments
 Line Scheduling Rule

There are two types of scheduling :

1. Reverse Scheduling
Schedule starts from the “Due Date (delivery Date) & schedule back ward.

2. Forward Scheduling
Same as earlier but schedule forward from a given start time.
A Gantt chart is a type of bar chart that
illustrates a project schedule. This chart
lists the tasks to be performed on the
vertical axis, and time intervals on the
horizontal axis. The width of the
horizontal bars in the graph shows the
duration of each activity.
 Production Planning
A successful production planning requires knowledge of two variables to determine the
time required for manufacturing a contract/ an order.

1. Load – How much work we are putting on a section.

2. Capacity – How much work a section is capable of completing
In an ideal situation, Load = Capacity

• Contract size = Order Qty

• Work Content = Total SMV of a garment
 Production Planning
For Example:
•Operators = 24
•Working minutes = 8 hrs.
•Efficiency = 69.78%
•Absenteeism = 5%
•SMV = 20.1
•Contract Size = 5000 pcs

= 5000x20.1
= 100500.00 (ans.)

= 24 x (8x60)x0.6978 x .95
= 7636.7232 (ans.)
 Production Planning
Kmart placed an order of 40000pcs polo shirts to Viyellatex
ltd. Calculate the load and capacity assuming following data.

✔Operators = 52
✔Working
= 8 hrs
minutes
✔Efficiency = 71%
✔Absenteeism = 5%
✔SMV = 26.2
 Capacity planning Formula
• Line Capacity
• Line Efficiency
• Operators Efficiency
• Factory Capacity
• No of Lines Required
• No of Operators Required

Total Minutes Consumed by Line per day

Total Minutes Attended by Operator.

 Capacity planning Formula

= {(14400-720)X 0.6}/25

= 328 pcs
Capacity planning Formula
Capacity planning Formula
 Capacity planning Formula

= [{(10X30X10X60) – 5%} X 0.4]/30

= {(180000-9000)X 0.4}/30
= 2280 pcs
 Capacity planning Formula
No of Lines Required
Consider that a company has received an order with target date as 20 days from today the
order quantity is 25,000, total garment SMV is 6.74. Consider the following data as input,
factory line efficiency 65%, each line runs with 15 machines, regular shift 8 hrs. Calculate
number of lines required to complete the order within the target date.
 Capacity planning Formula
No of Operator Required
A factory producing girls top at the standard minute value of 5.75 with the order quantity of 85,000
pieces. The average production of the factory is 800 garment / 8 hour shift with 10 operators in
individual line. There is only one line left free during this period. Hence, calculate the number of
operators required to complete the order in 38 days using single line with absence 4%.
Capacity planning Formula
 Standard Minute Value (SMV)
SMV is defined as the time which is allowed to perform a job
satisfactorily. Normally it is expressed in minute value. SMV term is
broadly used in the garments manufacturing industry.

SMV = BASIC TIME + (BASIC TIME x ALLOWANCE)

Basic Time = Observed Time X Performance Rating

Observed time = Total Cycle time / No of cycle

Rating = (Observed Rating * Standard rating) / Standard rating
Allowance = Bundle Allowance, Machine Allowance, personal allowance
Allowance in minute = Total allowance % * basic time
 Standard Minute Value (SMV)
Total Cycle Time = 20 mins
No. of Cycle = 5
Observe Time = 20/5 = 4 Minutes

Observed Rating = 80%

Standard Rating = 100%
Rating = {(80%*100%)/100%} = 80%

Basic Time = (4 Minutes x 80%) = 3.2 Minutes

Machine allowance =10%

Other Allowance = 10%
Total allowance to add = 10% + 10% = 20%
Allowance in minutes = 3.2 x 20% = 0.64 Minutes

SMV = 3.2 + 0.64 = 3.84 mins

 Standard Minute Value (SMV)
Application of SMV
• SMV is used in factory capacity planning
• SMV is the main data in the operation bulletin.
• SMV is used for labour costing for garment production
• SMV is used for performance rating determination
• SMV is used for efficiency calculation

Factors to Impact SMV

• Type of garments
• Types of fabrics
• Garments size
• Garments design
• Difficulty of the processes
• Types of machine
• Types of technology
 Garments CM (Cost of making)
Depends on-

• Total Cost (TC) = Fixed Cost (FC) + Variable Cost (VC)

• Production Capacity of Your Machine (Hourly)
• Total Effective Working Hours Per Day
• Number of Days Operation in a Month

Variable Cost
Fixed Cost
• Utility (Electricity cost, Water cost,
• salaries and wages,
steam cost, Air cost) Expenditures,
• interest expense of bank loan,
• transportation cost,
• a rental expense of your factory
• repair, and maintenance expense, etc.
building,
 Garments CM
Normal Method of Calculation of CM

CM per Pcs

H.N apparels has received an order of basic T-Shirt item.

Where,
H.N apparels total expenditure per month-30,00,000 taka
Total number of machines in the factory-100
Total number of machines required to complete an item-25
Targeted production per hour from the existing layout-180
Total working day per month-26
Total working hours per day-08
 Garments CM
Normal Method of Calculation of CM
∙ Salary & Wages Expense Tk. 20,000,00
∙ Monthly Interest on Bank Loan Tk. 10,00,000
∙ Depreciation Expense is Tk. 50,000
∙ Rental Expense of Building is Tk. 200,000
∙ Transportation Cost is Tk. 150,000
∙ Repair & Maintenance Expense is Tk. 50,000
∙ Utility Expense is Tk 10,00,000 where Electricity Cost is Tk.
500,000, Steam Tk. 200,000, Water Cost is Tk. 100,000, Chiller
Cost Tk. 100,000, Compressed Air Cost is Tk. 100,000.
∙ Total Number of Machine is 150
∙ No of mc req, 25
∙ Hourly Production Capacity of Each Machine 30 pcs
∙ The total Working hour is 8 hours per day
∙ The number of working days in a month is 26 Days.
 Garments CM
Effective Method of Calculation of CM

∙ Salary & Wages Expense Tk. 40,00,000 Monthly

∙ Interest on Bank Loan Tk. 100,000 Monthly
∙ Depreciation Expense is Tk. 50,000 Monthly
∙ Rental Expense of Building is Tk. 200,000 Monthly
∙ Transportation Cost is Tk. 150,000 Monthly
∙ Repair & Maintenance Expense is Tk. 50,000 Monthly
∙ Utility Expense is Tk. 10,00,000 Monthly
• Total Number of Machine = 180 Unit
• Number of Workers Required = 200 Person
• Total Working Hours a Day = 8 hours
• Number of Working Days for a Given Month = 26
Days
• Workers Efficiency = 65%
• SMV of Trouser = 35 Minute
Thanks