Industry Technologies
Strategic Insights: Navigating the Terrain of Production Planning
By Joe Altieri: Mentor, Educator, Trainer, Adjunct Professor FIT
Production planning and control (PPC) in the apparel industry refers to a specific set of activities and processes involved in managing and optimizing the production processes related to the manufacturing of garments and textiles.
Textbooks generally advise that we plan spreading (lays), marking, cutting, stitching (sewing), checking (QA / QC), finishing, pressing, and packaging. I view this as a direct result of fashion’s narrow focus. Our ideas around how the industry functions have barely progressed enough to warrant changes in our current texts.
In the modern world of production planning, the scope of impact is more far-reaching and involved. It includes synchronizing the fabric orders and trim items, and timing their deliveries to avoid lost time in the production process, and also to make sure your organization is not laying out large amounts of capital sooner than necessary. I know I do not have to remind anyone that we as managers, have a fiduciary duty to our employer.
Let's review the steps required to plan a pair of denim jeans.
Fabrics:
Is your product 100% cotton or a blend of cotton & polyester? Do the jeans have any type of acid or stone washing? Are you sourcing the fabric domestically or importing from off-shore? Have you requested that the fabric be sent directly to a CMT contractor? What is the MOQ, and the mill's lead time?
Trim Items:
Are the pocket bags 100% cotton or a blend? Are you sourcing the trim domestically or importing it from off-shore? Are you shipping it directly to a contractor? What is the MOQ, and what is the lead time?
As you analyze each trim item, ask the same questions.
Let's assume that you will manufacture the order domestically with a full-service contractor, using fabric imported from Italy and trim items sourced domestically.
Your BOM lists items as follows:Fabric: 100% cotton 62" wide 10oz denim = 1.5525 yds/ut w/wastePocket bags: 100% cotton pre-cut in sets = 1 set per pair7" Closed brass zipper = 1 per pair17 mm brass, dbl prong button set = 1 set per pair 9.6 mm brass rivets = 6 pcs per pair3" x 2" leather brand patch = 1 per pairOrder Size: 300,000 UtsStart ship: 8/1End ship: 8/30Avg Yd/ Ut: 1.5 ydsWaste Factor: 3.5%Total Yds Req: 465,750 = 45 days lead time
Frt. pocket set: 310,500 sets = 15 days lead time7" Brass Closed Zipper: 310,500 = 20 days lead time17 mm Brass Dbl Prong Btns: 310,500 = 20 days lead time9.6 mm Brass Rivets: 1,863,999 = 20 days lead time3" x 2" leather brand patch: 310,500 = 24 days lead time
Contractor:
You select a fully vetted contractor but still do your homework.
What is the capacity of your contractors and suppliers? From your past history with them or reliable word of mouth, you should already have this information at hand. So you know that an order of this size (300,000 units) will take 90 to 95 days to manufacture. This is based on the premise that all fabrics, trims, and findings arrive on schedule to your contractor.
However, suppose this order exceeds the capacity of your contractor, vendors, and suppliers. What do you do?
You start to research other companies that supply and manufacture the same item(s) that your order requires. You sample fabrics and trims, request sewing samples, and get cost quotes from potential contractors. Then you reach out to industry peers to inquire if any of them have a history with the new contractors. Yes! You read that correctly; you can reach out to peers to see if they have used contractors on your list. As an old manager of mine used to say, “We are not looking for a cure for the common cold, we’re making clothes!”.
But for now, we’ll work under the premise that your vetted contractors and suppliers are fully capable of meeting your needs.
Planning:
I’ve found that over the years it is easier to work backwards from the required shipping date to plan out your timeline. Before you can proceed with planning this order, you will first need the basic information of the order so that you can set your parameters.
Order Number will be found on your customer’s PO. Even with stock orders, there will be an internal (in-house) Purchase Order number.
If your organization uses an ERP system the following data should auto-populate.• Style/Model ordered by your customer. This will trigger the suppliers of trim items and manufacturing information for the factory. It should also have your supplier's lead times, costs, MOQs, and delivery methods.• Order size or quantity ordered. Quantity ordered by customer. • Fabric selected by your customer for the order will trigger the mill selection. This is where the fabrics will be shipped from, triggering the mill’s lead time allowances, costs, MOQ, and delivery methods. All of this will be negotiated by your company once a year, and changes will be adjusted in your ERP.• SAMs or minutes required to manufacture a pair of jeans. This number is used to plan capacity and develop your timeline.• Start Ship & End Ship, comes from the customer’s order and details the customer’s shipping window for the order. You may also have the terms of the contract linked here which can provide details of payment from your customer and any discounts in payments, or shipments outside the shipping window.
Order Number will be found on your customer’s PO. Even with stock orders, there will be an internal (in-house) Purchase Order number.
If your organization uses an ERP system the following data should auto-populate.• Style/Model ordered by your customer. This will trigger the suppliers of trim items and manufacturing information for the factory. It should also have your supplier's lead times, costs, MOQs, and delivery methods.• Order size or quantity ordered. Quantity ordered by customer. • Fabric selected by your customer for the order will trigger the mill selection. This is where the fabrics will be shipped from, triggering the mill’s lead time allowances, costs, MOQ, and delivery methods. All of this will be negotiated by your company once a year, and changes will be adjusted in your ERP.• SAMs or minutes required to manufacture a pair of jeans. This number is used to plan capacity and develop your timeline.• Start Ship & End Ship, comes from the customer’s order and details the customer’s shipping window for the order. You may also have the terms of the contract linked here which can provide details of payment from your customer and any discounts in payments, or shipments outside the shipping window.
The example I use has a start ship of 8/1/24. I know that my contractor will need 90-95 days to produce my order, my fabric supplier will require 45 days, and my trim suppliers have lead times ranging from 15-24 days.
So, by working backwards from the 8/1 ship date you will see that I must start planning and processing of the order no later than 3/13.
I developed a timeline graph, not unlike a Gannett Chart that is used in Project Management, to help visualize my plan.
There are several production planning platforms available on the market that can be configured to meet the needs of your business. But, as with any technology, understanding the process on which the technology is based is as important as mastering the technology.
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