1 Study On ERP in GMT Of Textile Industry

INTRODUCTION:

The apparel industry is one of the most important sectors of the

economy with regard to investment, profits and employment generation

all over the world. The important segments covered in the textile

industry include home decor and furnishings along with clothing and

fashion accessories for children, women and men.

The time consumed in actual sewing is not even half of the total time

required in assembling apparel. It’s a series of steps involving

procuring/outsourcing raw material, designing, re-designing as per

customer need, assembling, marketing, fit-in-sessions, and finally

shipping to wholesalers/retailers that take the rest of the time. Apparel

is also short lived – changing weather and climatic conditions,

fashion trends and geography all affect the garment industry. So

manufacturers’ responsiveness, coupled with shorter and quicker

supply chain movement, is a must. This vital time can be compressed

using the novel, nimble and nifty Enterprise Resource Planning, ERP

solution that seamlessly integrates the complete fiber-to-textile-to-

apparel-to-retail operations and gives you the capability to operate

more effectively, respond quicker and grow more profitably.

PRE-SCENARIO OF E.R.P:

2 Study On ERP in GMT Of Textile Industry

What is ERP?

ERP (Enterprise Resource Planning) is revolutionary concept in the

contemporary world. All the information of an enterprise under one

roof for assisting planning & implementing decisions having complete

visibility-that is the main object of ERP .

Now-a-days, it has been proved that ERP is an obligation for any

manufacturing industry, specifically it can be mentioned with no

doubt that ERP is necessary in the apparel & garments industry, as in

this sector finished apparels are outcomes of many interlinked processes

in the supply chain handled by different factory types and a good

number of people are involved in this process. In order to meet on time

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delivery dates of customer orders, entire supply chain management

should be well practiced by the correspondents.

ERP software in textile

When lots of information are moving in the air i.e. all information is

tracked manually, then it is almost impossible to find out the exact

situation of customer order, then it is almost impossible to find out the

exact situation of customer orders, which steps is the blockage,

therefore often delay occurs in specific decision making due to lack of

the visibility.

Production control system for garment industry:

What type of equipments and investment do we need to use

the system?

To start using the ERP Garment Kontrollis system You don’t need any

major investment. You need a personal computer or laptop, a laser

printer, a cod bar reader – scanner (optional – it increases the speed

and the precision of working with data) and a stable internet

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connection (at least 4Mbps). We offer the server, You don’t have to pay

anything for setting the system, no licenses to buy. Everything works

based on a monthly fee after 30 days of free testing.

Do we have the opportunity to test the system before signing a

contract?

Yes, with the Kontrollis online production control system our customers

have the possibility of a 30 day free testing. We can subscribe any time

for a risk free testing, no credit card info needed or contract in testing

period.

How much time do we need to process the data about

production?

Using the digital data scanner (bar code reader) the data regarding a

one day work of one employee can be input in less than 1 minute. So,

at a firm with 50 workers one person can process all the production

data in less than 1 hour.

Which is the effect of this production control system on the

company’s activity and results?

After subscribing to the Kontrollis production control system our

customers had a significant increase of productivity, from 10 to 30%.

These effects, at a medium sized firm (50-250 employees) could mean

a production growth of a few hundred thousand dollars in one year.

That means that the earning is a few time more than actual costs

(monthly fee + costs of paper). So You are going to have extra profit

from the first months of using the Kontrollis online production

controlling software.

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Is the Kontrollis System good for lohn production systems?

Kontrollis is ready for both main production systems in lohn (using

raw materials of contracted customers) or under own label production.

For both systems Kontrollis can control the worker’s productivity and

material using efficiency. We have customers from both system and

others who produce in both way in the same time and have positive

results with our cloud based production control system.

Do we need to hire an IT man to use the system?

No, we don’t need IT specialist for using the system. Is it enough to have

a footwear (footwear etc.) specialist who has basic computer user skills

and knows your production processes.

Is my data safe with Kontrollis?

Kontrollis uses high performance servers and security systems to keep

our data safe. And on the other hand we pay to this aspect a very high

attention, because we know that we depend on long term on customers’

trust and success. As we don’t use prepaying, we only survive and

develop business if customers are satisfied on long term with our

services. We plan to have a long term partnership with us so we focus

on your trust.

Our company is also responsible for data security, meaning, your main

account administrator has to set the access limits for every other user

according to their skills, responsibilities and trust.

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Implementing this system presumes a lot of extra work?

As any innovation or new project implementing the Kontrollis online

production control software for garment industry also needs extra effort

in the beginning. According to the complexity of your production

process, the number of employees, the existing production controlling

methods (other implemented software, excel tabels or handwritten

accounting), the available time etc. it presumes one to a few months of

harder work.

After implementing the software your company will save lot of work

using the system. After existing experiences at other customers the first

year after starting to use the system had a productivity growth of 10-

25% with the same number of employees.

What happens if it is too complicate for me?

When our account is set we’ll get user’s manual and some tutorial

videos. Also there are contact forms and e-mail addresses if we need

help.

Also after subscribing we’ll get detailed flow charts and tutorial video

of the production control system.

No investments required:

Any textile factory can have an effective controlling system without

any investment. We do not have to invest in servers, network

equipments and software license; we just have to subscribe and pay a

monthly fee for using it after 30 days free testing. All of us need a laser

printer, a broadband internet connection and a bar code scanner.

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We can control the production costs in factory:

The production controlling system for textile industry offers exact and

detailed information about the production costs (material and salary)

for all the orders and styles. We know precisely how much it costs us to

produce a product. We can check the estimated and the real costs,

where are differences and where can we have some savings.

We can know the work efficiency of each employee:

We can know exactly the daily and monthly work efficiency of each

employee, based on which we can achieve a better organization of the

production and we can implement motivation systems that will

increase our productivity.

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Pay our employees based on their productivity:

The system allows you to implement a payroll system based on

individual productivity of each employee. Employees know that they

earn exactly as much as they work. You know exactly what and how

much each employee works and the system also calculates their wages.

Linking the salaries directly to the individual productivity is an

important motivational factor for the employees and leads to high

productivity rate.

Control the quality deficiencies:

With this system our managers can easily identify the persons who

make mistakes in the manufacturing process that lead to quality

deficiencies. Every operation is linked to the worker who did it with

the bar code system. Having this information, we can implement a

strict quality control and significantly reduce the costs related to

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quality defects. Employees will pay more attention to quality and also

quantity.

Pre-calculations and production planning:

When we receive an order, the system immediately calculates the

expected manufacturing costs, giving us the necessary information for a

price calculation. The system also offers important information that

can help us in organizing the production more efficiently.

We can control what is happening at the factory, wherever

we are in the world:

All of us need is an internet connection, and we know exactly the

status of the orders, the daily production and all the important

production data even if we are in other countries to deal with

customers.

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Kontrollis ERP Garment Industry offers now the production controlling

system free testing for 30 days.

Example of ERP Software:

AIMS 360 Apparel ERP Software-AIMS Remote Link:

The latest update of the AIMS Remote Link’ iPad app includes a useful

shopping cart feature that allows for easier order tracking. As you add

orders using the AIMS Remote Link order taking app, you will see a

number at the top right corner of “Cart”, which will indicate the

number of items that are being ordered. Simply scroll through your

look book, select an item, add it to your cart, swipe to scroll to the

next color

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or new item you want and select “Add to Order”, and you will see the

number increase in your cart. The good thing is that you can select

the quantities for each item in the cart after you are done selecting

what the customer would like to order.

Benefits of ERP in Apparel Industry:

Supplier

benefit

Management

benefit

Employee

benefit

Customer

benefit

Information

in time

about

material to

be

provided.

Cost savings,

improvement

in savings.

Good

customer

relationships.

Satisfaction

in working

and

achieving

goals with

good team

work.

Good

services.

Good

quality

at

cheaper

price.

Reduction in cycle time:

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As of now, allocation of material to specific customer order is not

possible with the current system. Such allocations are useful for

making deliveries as planned, as there is no possibility of the material,

which is required by one order, getting consumed for different order. In

such cases earlier order would get delayed if material were not

available in the stock while production time is spent on other order,

which could have waited without causing any problem.

Cost savings:

Company losses 2% of its sales value in discounts, which are the result

of surplus production, implementing quality management system can

help to bring down excess production, as management will be assured

of the quality right from the raw material itself. Supplier developer

module would be useful in proper selection of suppliers, which can

focus on quality, cost and delivery aspects of supplier.

Reduction in machinery downtime:

5 % machinery downtime is attributed to non-availability of raw

material in the stores. This is due to absence of proper planning system

and due to communication delays at every place because of

information recompiling. Prompt communication coupled with

effective supplier selection module and planning system would be

useful in bringing down the machinery downtime.

Improvement in sales:

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75 % customers place repeat orders. Three factors-price, order and

delivery affect orders. Integrated system will definitely be useful on this

account. Price is one of the causes of losing customers; there is ample

scope for cost reduction and therefore company can offer lower prices

and incentives to attract customers through integrated information

management solution.

Customer satisfaction:

Current system is ineffective in tracking problems related to customers.

The response regarding effectiveness falls in unsatisfactory category.

Capacity planning for received order also falls in average category.

Efficient capacity management system can bring down the delivery

time for execution of the order and improve customer satisfaction. This

management scheme can be very useful in maintaining better customer

relations with prompt response and by knowing their past history. Well

formulated procedures for customer dialog will be useful in having

better customer relations. It takes approximately 3 days to answer any

of customers queries. This period can be brought down to a day, which

will have very good impact on customers perception of the oganisation.

Conclusion:

Thus, due to the globalisation information Technology has become a

very important asset to the textile industry. With the development of

the data management system for production and on-line data

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monitoring systems on the latest machines, the textile industry will

flourish with all the glory to it.

REFERENCES:-

Enterprise Resource Planning by ALEXIS LEON published by

TATA McGraw HILL, 1999 Edition

E.R.P by PARAGDIWAN and SUNILSHARMA published by

PENTAGON PRESS, 2000 Edition

E.R.P A Managerial Perspective by SADAGOPAN published by

TATA McGraw HILL, 1999 Edition

www.erpinform.com

www.google.com

ERP Garment Industry.htm