The Longest Yard: Production Planning Is a Team Effort
When I consult with owners and management, I find some companies have a continuing problem of shipping product late. They literally tell me, “We do everything right, we just don’t ship on time.”
My usually reply is, “Let me see if I understand you correctly. If you’re a football team, you’re saying you can move the ball 95 yards down field every time. It’s just crossing the goal line that’s the problem?”
Just like in football, manufacturing and shipping on time require a team effort, so it’s not just the last guy who determines the final outcome of delivering on time; it’s the first guy and everyone in between.
The production manager can usually quote the lead time required to cut, sew and finish—let’s say three weeks. The development and/or design staff can also quote supplier delivery times—for example, four weeks for fabric and trim. So, four weeks for materials plus three weeks to cut and sew totals seven weeks’ lead time to delivery.
The secret to being on time is to be sure to build in time for real issues that affect delivery. If you’re planning your Fall season, for example, and want to ship on June 30, then count backwards from June 30 seven weeks and start the process of ordering fabric on May 7. But the reality of production issues kicks in when your fabric arrives, so give yourself time to inspect and check the fabric to see that it meets your requirements for width and performance. Some patterns and markers may need to be adjusted to meet the production fabric spec and performance. So give yourself a week for this process. Now, with this extra week, you need to order fabric May 1.
Plan and schedule cut-and-sew time into this equation as well because this is where the best-laid production plans go up in flames. In the example above, we said we need three weeks to cut and sew, but the sewing factory can only produce 2,000 pieces at the end of three weeks, and the order is for 8,000 pieces. The factory can continue to deliver 2,000 pieces each week thereafter for a total of 8,000 pieces in six weeks. So, our ideal delivery schedule of seven weeks actually turns into 11 weeks: four weeks to receive fabric and trim, plus one week to test the fabric and correct check patterns and markers, plus six weeks to cut, sew and finish. Now, the “pull the trigger” date is April 7, not May 7.
But don’t stop here. Your development time needs to be included in this backward calendar counting. When do fabric and trim supplies and suppliers need to be finalized to assure that you can begin ordering materials on April 7 as planned? Some or all the sourcing for suppliers may be completed by the time samples go to market, but you should allow one to two weeks prior to writing orders to confirm with all your suppliers of their ability to deliver within the specified timetable. So, although you’re ordering goods April 7, you are finalizing all material suppliers, labor costs and cost sheets beginning March 25.
Once the Fall sales lines go to the sales department in mid-January to early February, design now needs time to correct and finalize the patterns, markers and specs for release to production. Most design departments need at least six weeks to finalize their releases, so counting backward, that takes the beginning of the production-planning process back to Feb. 7. Design departments need this much time because they are usually working on three seasons concurrently—initial designing two seasons ahead for Spring, initial samples one season ahead for Holiday and finalizing the current Fall season.
It is imperative to plan and schedule for real-time issues and problems that can affect your delivery. Otherwise, you are vulnerable to repeating the same mistakes season after season. And the price for shipping late is a loss of gross profit through markdowns from cancellations, discounts for customers to accept late goods and creating the precedent that your company is an unreliable supplier. The gain for shipping on time is keeping your gross profit and establishing your company as a reliable supplier.
Steven Goldman is the president of Apparel Industry Consulting Services and has more than 20 years of experience in managing and consulting apparel, home furnishings, jewelry and light manufacturing companies. He can be reached atSBGoldman@earthlink.net.
