Approaching Zero Defect in manufacture of ready made garments Make in India Textiles Committee & FICCI Strategy Seminar New Delhi Presentation by Gokaldas Exports 7 th April 2015

What is Zero Defect ? It is not about being perfect, it is about changing our mindset ….. It does this by demanding that we …. Meet or exceed customer expectation Recognize the high cost of poor quality Continuously think of the areas where flaws can be introduced in the production process. Work proactively to address vulnerabilities in our systems and processes, which allow defects to occur Continuously measure performance against standards Seek continuous improvement in standards itself.

What is Zero Defect …? “Zero defects” is a standard. It is a measure against which any system, process, action, or outcome can be analyzed When zero defects becomes the goal, every aspect of the business is subject to scrutiny in terms of whether it is measurable or not ….. And What cannot be measured cannot be improved !!

Approach to move towards Zero defect. Establish norms for each stage of the process ; Ensure processes are performed as per the norms, Measure and evaluate the results consistently against the standards … and Take corrective action to eliminate the root cause of the deviations Upgrade standards as we go along the path of improvement 3 rd Party evaluation & certification needed to verify the process being followed as a zero defect manufacturer …. Objective Validation essential to be accepted by all customers

Technology for Achieving Zero Defect Do We have Technology ?Benefits of Adopting TechnologyChallenges

Do we have the Technology ? Most Indian manufacturing unit perceive that they have modern technology but probably none of us have a world class plant. Indian garments industry needs Technology Upgradation urgently to be globally competitive.

Benefits of Adopting Technology For Zero defect Improving percentage of First time right in process(FTR) Quality Consistency. Error proofing in manufacturing process. Reduction of re-work rate Indirectly it helps On-time delivery and order fulfillment Minimizing human interface with automation and specialized tools helps in ………

Challenges Buying technology is expensive and can be justified only with the economies of scale. Information about technology does not reach manufacturers on a periodic basis and it is dependent on the machinery suppliers Most of the time Technology is developed for a specialized operation and not for a standard operation. Life cycle of tools & equipment's used in manufacturing process is extended due to low profitability. Inadequate competence within individual companies to evaluate the technology.

STANDARDIZATION OF THE PROCESSES

Standardization Standardization is required as a part of manufacturing excellence and has to be followed from yarn to end product. Everyone in Supply Chain need to follow Operational Excellence driven management systems

PROCESS FOLLOWED….. Fabric geometry and inter relationship of yarn count, loop length, pick count, relaxation & fabric properties toward achieving defect free product. Process variations : identify, measure & monitor key performance indicators.Systematic Process improvement program.Process optimization.Error proofing system in manufacturing.Technical understanding and fault rate recording system.Causes & Prevention of process break down.

Skill development : The Key to achieve Zero defect

Importance of Skilled Workforce Apparel manufacturing industry handles wide range of products……. This requires a trained work force and …… they become a crucial strategic resource to any organization’s success Success in any field depends on educating and training people …. which should be a continuous process. Technology up-gradation alone will not bring the desired results Training and learning skills is vital to compete in the global market through improved quality and productivity

Limitations along this dimension... Massive gap in terms of availability of skilled workforce across the industry ; To support large expansion of capacity, modern training institutions particularly for the supervisory level, are crucial Most firms are reluctant to invest in training and those who do provide on- job-training forget to make it a continuing process. Training must be practical and directly related to the needs of the enterprise which is missing at present. It should also result in a change of behavior so that job is better performed. Government supported training crucial for Textile and Apparel Industry ….. Supervisors, Pattern makers, Industrial Engineers, Maintenance personnel for handling specialized machines.

Skill development Certified training on special jobs On job Training for regular work Creating awareness of company’s goal by conducting frequent meetings Do Video presentation on best practices followed in the Industry However companies find their own way of developing skilled workforce by giving

What is needed ….. Gather Information of Existing Skills Sets in the various Functions in the Manufacturing Units Study Required Skills Sets needed by Benchmarking to National and International Manufacturing standards Reduce gap in the Existing Skill Sets by giving adequate and continuous training

BEST MANAGEMENT PRACTICES

Best Practices …. Waste Management. Visual Management. Product Risk analysis Quality Audit Analysis. Periodic QMS audit in plants. Traffic Light System & AQL1 process Early alert mechanism for abnormalities in the process with immediate response for closure. Process ownership with KRA

Focus areas to bring down defect rate Fabric inspection Cut panel precision Appropriate Machinery and Automation Adherence to Process standards Quality check points Washing parameters Presentation checking

BENCHMARKS Zero defect must be integrated as a part of company culture. Understand the expectation of the customer in terms of Quality & Product safety. Achieving FTR 95 % & aboveZero external re-screenAchieving QMS audit score 95 & aboveBuild Quality into your performance expectation

Value of Zero Defect ….. Indian apparel exports are valued at USD 16Bn 1% reduction in rejection rates would add – USD 160Mn to the sales turnover and the bottom line – A mind boggling Rs.990crs !! 1% reduction in rejection rates would reduce rework – Savings in labour cost : Rs.250crs Additional Drawback : Rs.70crs Total Impact Rs.1310crs …. USD 210Mn Besides it will – Add value to the product from the Customers’ perspective – Strengthen our competitive advantage !!

We have to do it together … Quality comes in cans ……. – I can – YOU can – WE can All stakeholders have to resolve to work together – Fabric manufacturers, Accessories manufacturers – Garment manufacturers – Labour and Management – The Government agencies

……….TO CONCLUDE ZERO DEFECT ADDS VALUE TO THE PRODUCT, IMPROVES PROFITABILITY AND REINFORCES COMPETITIVE ADVANTAGE ……. THEN WHAT ARE WE WAITING FOR ? LET’s DO IT !!!