EFFICIENCY AND SYSTEM IMPROVEMENT PROJECT FOR CLOTHING INDUSTRY

GOAL:

1. Improving Turkish clothing industry for export thru Department Stores.
2. Improving efficiency and quality of companies to be competitive in 2005 Free Trade Term.
3. Providing central / economic / efficient / fast service for quality control, pre determined time system, efficiency and flow based pull type production system consultancy and implementation, accredited laboratory tests.
4. Forming a cluster for diversity management of different companies, utilizing their skills on the same web, creating flexibility and cost advantage for customers.

1. Marks & Spencer

  • M&S is a very big and systematic buying Department Store in Turkey.
  • M&S is switching to operate with direct producers in its Supply Chain but Turkish companies are not ready for such a transform yet.
  • MSQR is a contemporary, clothing based and customer oriented version of ISO 9001. Also it is the key for accrediting a company for M&S. Turkish companies used to operate under an accredited / licensed UK company and now M&S is removing this layer to be cheaper.
  • In 2003, Turkey is the first country to supply fabric (%16) to M&S and second country to supply garments (%13) to M&S. Clothing industry is skilled, has a high volume, vertically integrated, close to Europe. Companies are not familiar to the system, anxious and missing the opportunity.
  • M&S requirements are tough, being registered is a must, compatible with EU norms, GSP / ETI codes are in place. In other words if a company survives with M&S, it can definetely be eligible for NEXT, H&M, C&A, Steilmann, Zara, … These rules are in harmony with Turkish Government policies, improves peace at work (unions).

2. 2005 Free Trade Term

  • Demolishing quantity restrictions will let China to rule world clothing market.
  • Turkey must utilize the inherital advantages to survive:
    • Proximity to Europe.
    • Available plenty and skilled work force with a moderate cost.
    • Sufficient know-how for textiles, eager to learn.
    • Integrated and wide scope of industry also covering auxillaries (zip, hanger,..)
    • Able to promote brands ( eg. Mavi Jeans ).
    • We need to improve efficiency, quality, flexibility and systems.
  • Companies who can not compete with Chinese prices on sale are trying to buy from China to lower their raw material cost. China wins all the time !

3. Changing “buying pattern” of customers

  • Order sizes are getting smaller.
  • All orders are “very urgent” .
  • Buying prices are getting lower.
  • Cost figures are increasing.
  • There are cheap alternatives, like China, India, Pakistan, Mexico.
  • Workers are expecting better living standards and hence cost is going up.

The only way out is efficiency + quality + flexibility based production system.

METHOD:
  • On the same web, in the same cluster …..
    • By clustering companies per product / production ability / existing investment utilizing idle capacities, improving efficiency, getting scale advantage if exists, sharing common costs, preventing redundant investments.

  • Improving efficiency and flexibility ..…
    • Changing production system from Turkey’s most used to push / bundle / sitting / high WIP stock / old system to TQM / lean / pull / flow / standing / contemporary system to boost efficiency + flexibility and reducing lead time.
    • Having one licensed GSD per cluster to serve satellite companies and providing the opportunity to have a reasonable / realistic / measurable efficiency monitoring service and fast + accurate costing for the customers.

  • With Quality Systems ..…
    • Saving repetitive investment, making available of central QC inspector team, laboratory, fabric / trim inspection, proper designs, follow up of calibration and accreditation, customer services to increase export potential, reduce cost, improve quality, enjoy savings.

WHY ME?

  • Experience
    • 24 months M&S accredited fabric supplier
    • 5 months M&S accredited clothing company subcontractor
    • 30+ months M&S accredited clothing company
    • 13 years work experience with foreigners
  • Education
    • Ankara Fen Highschool - accepted after a national exam
    • M.E.T.U. Industrial Engineering, B.Sc.
    • T.C. Ziraat Bankasý Banking School, Certificate
    • Çukurova University, Industrial Engineering, M.Sc.
    • ISO 9001 General Training, Internal Auditor Training
    • Profil-Outdoor, HOSCA Team Building Training
    • A week in Ireland / Desmonds on site training
    • A week in Scotland / Castleblair on site training
  • Good result
    • Castleblair is operating with flow / pull system for the last 15 years, licensed GSD user, serving to M&S for rougly 75 years.
      • Return To Manufacturer, RTM % 0.85
      • Second quality rate % 0.9
      • Internal repair rate % 2.5
      •Improvement of average real factory efficiency: From %46 to %65
    • In 2003 we have been selected by Llyods / M&S as the first of 600 off shore M&S producer which have been audited against MSQR.
    • In 2004 we have been awarded with Best Quality Supplying Producer in our region by M&S Firewall team.





 

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