Business models in the garment industry

In Europe there are six main types of business models in the garment industry:

1)     Independent multi-brand stores

Independent multi-brand stores can be described as “stand alone” retailers who may havevery diverse assortment strategies because they cover the whole range of quality and price and vary in the degree of specialisation in clothing. Typical for this business model is that it is impossible to influence the design, cut, and branding. Compared to other business models, the lead times are comparatively long and may account for about 6 month or sometimes even longer. Multi-brand stores do not have private labels since they do neither own production facilities nor cooperate with subcontract manufacturers. This distribution channel is dominated by SME´s, which will not have very extensive supply chain processes.

Muscle-bone disorders

Ergonomic disorders are the fastest growing category of all the occupational illnesses. They include 56% of all diseases. Ergonomic risk refers to the physical stress factors and workplace conditions that carry a risk of damage or muscle-bone disorders of the employees. The risk is always present when the job requirements exceed the ability of workers to perform the task. If the tasks or movements repeat frequently (for example, every few seconds) the strain upon the muscles and tendons can accumulate, which can lead to permanent tissue damage. Tendons and muscles can often recover from the effects of repetitive stress if there is enough time to rest between these repetitions. Unfavorable working postures increase the fatigue of workers and the time of performing technology operations.

The main objective of physical ergonomics is to increase comfort, to reduce pain and the occurrence of muscle-bone disorders. The International Commission on Occupational Health (ICOH) defines a Muscle-bone disorders (MSD) associated with work as such disorders and diseases of musculoskeletal system that have a causal determinant which is associated with work. Damages and degenerative changes of the musculoskeletal system are the consequence of mismatch between the requirements for the load of organism and the abilities of organism to respond to those requests.

CONSTRUCTION AND MODELLING WOMEN'S SHIRTS

Basic dimension:

Bust girth = 88 cm

Waist girth = 72 cm

Hips girth = 97 cm

Help size: 

Armhole depth =1/10 Bust girth + 11.3 = 20.1 cm

Centre back = Armhole depth + 21.5 cm= 41.6 cm

Waist to hip = Length of the pattern = Centre back + (20 to22) cm – 1.4 cm (for correction) = 62.2 cm

Neck depth = 1/6 од ½ Bust girth – 0.6 cm = 6.7 cm

Across back = 1/4 Bust girth – 5.5 cm = 16.5 cm

Armhole Width =1/8 Bust girth - (1.5 to 2) cm = 9.3 cm

Across front = 1/4 Bust girth - (3.5 to 4) cm = 18.2 cm

Centre front = Centre back +1/2 Bust girth - (1.5 to 2) cm = 44.3 cm

Description of work:

Point 1 to Point 2 = Armhole depth = 20.1 cm

Point 1 to Point 3 = Centre back = 41.6 cm

Point 1 to Point 4 = Waist to hip = 62.2 cm

Point 5 to Point 6  = Across back =16.5 cm

Point 6 to Point 7 =2/3 Armhole Width = 6.2 cm

Point 1 to Point 8 = Neck depth = 6.7 cm

Point 7 to Point 9 = 6 cm (between)

Point 9 to Point 10 = 1/3 Armhole Width = 3.1cm

Point 10 to Point 11 = Across front =18.2 cm

Point 10 to Point А =1/4 Armhole depth = 5 cm

Point 12 to Point 13 = Centre front = 44.3 cm

EFQM Excellence Model

The European Foundation for Quality Management (EFQM) Excellence Model, is a self-assessment framework for measuring the strengths and areas for improvement of an organisation across all of its activities. The term ‘excellence’ is used because the Excellence Model focuses on what an organisation does, or could do, to provide an excellent service or product to its customers, service users or stakeholders.

Line balancing process

The process of balancing an assembly line involves three major steps: determine the takt time, calculate the theoretical minimum number of workstations and assign specific assembly tasks to each workstation. These steps can be performed has described below:

1. Takt Time

Takt time, also known as the production pace, is the rate at which customers require finished units.  In other words, it sets the desired time between units of production output, synchronized to costumer demand. It stems from the German word ‘takt’ that means pace, beat or musical meter and can be determined by dividing the productive time available per day and the required demand also per day.

We can determine the takt time by dividing the productive time available and the required demand per day, as previously described.

CONSTRUCTION AND MODELLING MEN'S JACKET

Basic dimension:

Height girth = 180 cm

Chest girth = 100 cm

Waist girth = 90 cm

Hips girth = 102 cm

Help size:

Armhole depth =1/10 Chest girth + 21 сm = 31сm

Centre back = 1/4 Height girth + 3.5 cm = 48.5 cm

Waist to hip = Centre back + (20 to 22) cm = 69.5 cm

Length of the pattern = 1/2 Height girth = 90 cm

Neck depth = 1/6 (1/2 Chest girth) + 0.5 cm = 8.83 cm

Centre front = Armhole depth + 21 cm = 52 cm

Across back = 1/8 Chest girth + 13 cm = 25.5 cm

Armhole Width = 1/8 Chest girth + 7.5 cm = 20 cm

Across front = 1/4 Chest girth + 2.5 cm = 27.5 cm

Scenario Based Planning

“The business environment is uncertain. Business is about taking risks. Strategic management is about exploiting opportunities within a context of uncertainty about the future.” (Heijden)

Scenario planning functions as a strategic management tool, often as a part of decisions making. A definition is offered by Schwartz: “The scenario process provides a context for thinking clearly about the impossible complex array of factors that affect any decision”.

Working with scenarios creates a common language in the organization which gives management and employees an opportunity to talk about all the influencing factors and the “what-if” stories of the future. What if this and that happened, what would we do then and how can we prepare for such an event?

Scenario Based Planning (SBP) is a strategic management tool that can guide the decision makers to elicit the right choices for strategic planning. This is a thinking concept where the planner looks for the cause behind the events occurring in the business environment, recognizes a system and thereafter frames those systems into scenarios.

BCG matrix

Portfolio plan of Boston Consulting Group (BCG) that has been developing since 70's is based on the assessment analysis of existing products, possibilities of  modifying products or manufacturing new ones. Starting from researches done by BCG, it has been concluded that a strategic position of business is determined in accordance with relative market participation and a market growth rate.

Relative market participation is considered to be a market participation of a product in relationship with a leading competitor in the production of similar garments.

Growth rate can be positive (meaning growing market), nought (standing for stagnated market) and negative (i.e. falling market in future). Market growth rate is indicated with "low" and "high" in BCG matrix meaning that market growth rate of that garment manufactures is lower or higher than growth of an entire economy of the region.

Design and marketing

by Dr Danijela Paunovic

Apparel technology has experienced radical changes caused by technological development, automation of production processes, computer applications and the occurrence of competitive international garment producers (China, India ...).

In the production of textiles, which are inevitably moved to the east of the country, clothing industry still exists as a specific, dominant and leading European fashion industry (Paris, Milan, Rome ...). In the EU there is a clear commitment to achieve primacy not released, and a prerequisite for the full satisfaction of all customers from the standpoint of quality clothing products with an increasing emphasis on design as an important component of quality.

In the modern fashion industry's most successful manufacturers are those that have organized professional teams for the design and marketing, as dictated by the cycle of current fashion and easily introduce new fashion designs, thus surprising the competition.

Mass customization strategies

The garment industry is industry that forerunners in the application of mass customization. The reason behind this development can be seen in the fact that clothes offer the potential to all three possible dimensions of customization: fit (shape, measurements and size), functionality and aesthetic design (taste, forms).

Mass customization strategies can be used at any of these 5 stages in the production process:

1. Customer Involvement at the Design and Pattern Stage

The examples of developing systems which are present on the world market (Optitex, Gerber, Lectra, Investronika, Assyst) allow taking all variations of future garment into consideration. Their behaviour is simulated, their impact on the environment is analyzed, and simultaneous design is used aiming to obtain the best solution in the given conditions which reduce subsequent changes (correction model design, adjustments to fit in cutting layout for basic and supplementary material) to a minimum.

Creating a prototype model for industrial production in the formation of products in the clothing industry involves the development of CAD methods for the preparation of construction segments. The number of possible variations in colour, shape and design, modelling and re-modelling of garment is almost unlimited.

Scheduling

The daily production of clothing deals with many work orders, so it is necessary to complete scheduling. Scheduling means determining the order of carrying out jobs. Priorities can be determined on the basis of several rules:

- FIFO (first-in, first-out),

- LIFO (last-in, first-out),

- DDATE (earliest due date) - which product must be made first,

- CUSTPR (highest customer priority) – first the product for priority customers,

- SETUP (similar setup) - first the similar products which require a minimum setting of machines,

- SPT (shortest processing time) - priority for products that last for the shortest period,

- LPT (Longest Processing Time) – priority for products that last for the longest period.

MADE TO MEASURE

by Dr Danijela Paunovic

The need to meet customer demands and competition, that the JIT and QRS strategies to achieve customer imposes the use of modern technology in the CIM concept, or import of technology (CAD/CAM systems, 3D body scanners for the production of Made to Measure). This mode requires an organized, optimized and computerized construction preparation (MIS), in which the user desires through virtual catalogs, showroom and on-line customer service solved in the shortest possible time.

The values of average body dimensions have changed dramatically mainly due to diet, and older age population (the largest buyers of clothing in developed countries) have frequent physical strain. Problems were those customers whose anthropological characteristics did not fit the standards, whether they are from a different geographical area or to go beyond the standards. For such customers is necessary to individually measure and make their computer to transfer through clothing manufacturer where adjusts the standard cuts and made garment that is supplied to the buyer within 24 h.

Programming Software Made to Measure is set for this mode of operation. Used Contactless measurement of body measures and adjustment measures of a simulated human body in motion. Three-dimensional physical data are taken for two-dimensional shapes cuts of clothing. The most important element in the processing cycle is to develop a computer model of a man and a system for registering contactless physical measures.

Modular Production System

The modular system was first implemented at company Toyota in 1978 as part of JIT, and was known in the 1980s in the West as the Toyota Sewing System. Monden  in 1998 gave this system a U-turn layout and claimed that the main advantage of that system was that the amount produced can easily be arranged by changing the number of operators working in the system. The modular system works on the principle of pull-type production systems, in which the job order comes from the last step to previous steps. Because of this, the amount of work in process is low, even working when no inventory is possible.

SWOT ANALYSIS IN DESIGNING NEW MODELS

Today designing and getting of new ideas in fashion industry should become an organised process that requires thorough, systematic approach that is given a basic direction both by a designer and a capable manager team. Such an educated and creative team ensures designing and gaining new articles of clothing as being the most important element in the development of garment industry done as planned and continually according to current situations and priorities.

In fashion industry this process is neglected, so many companies are struggling for their existence. It is necessary to do SWOT analysis in order to get marketing weapon and overcome all existing problems that is to take all advantages and eliminate weaknesses of the company.

It is possible to point out solutions and consequences by the analysis. As well as to show how a fashion industry should get better by the help of this analysis. SWOT analysis must be summarised, specific and to analyse key questions of each company but not ad-hoc suppositions that do not point out future actions. On the basis of SWOT analysis it is necessary to do detailed estimate of competition in fashion industry.

SWOT analysis is the method of strategic planning that enables analysis of estimates and combining of internal factors with information from external sources on the market and in business environment.

Ergonomics standards

Ergonomics (Greek: Ergon = work + Nomos = custom, law) is an interdisciplinary scientific approach to problems of adjusting work to humans, aiming to increase productivity, i.e. working efficiency, work safety and humanization of human labour.

Name of ergonomics is used in most European countries, the name of human factors or human factors engineering in the US, and the name of the engineering psychology in the former Soviet Union. The goal of ergonomics is to be studied and adapted to conditions of work, means of work, work process and the product as a result of human work from the psychological, physiological and anatomical aspect, instead of adjusting a worker to the needs of a job.

The first ISO (International Organisation for Standardisation) standard based on ergonomic design of work systems ISO 6385 (1981), i.e. ergonomic principles of work system design, was developed on the basis of the German standard DIN 33 400 (1975), designing systems according to the ergonomic guidelines.

CAD system

CAD system by Dr Danijela Paunovic

Globalisation continues to be a major force in the apparel industry and is often the reason for important developments have dramatically transformed the fashion industry in recent years. In the latter part of the 20th century the textile industry struggled to adjust to globalisation and lower production costs and much of the manufacturing division of the Europe fashion and clothing industry has moved overseas. In the past, the core part of the fashion and textiles industry was manufacturing, now the core of apparel business is seen as a rise in the importance of design product development, marketing and distribution. The future of apparel industry shows towards adding high value, maintaining high quality production for niche markets whilst balancing the need for low value/volume production with effective sourcing and manufacture abroad. The recruitment of the suitable specialist in the fashion field and building a successful creative team has already became an essential tool for providing company's success and development.

Open workplaces and losses

In the garment production workplaces are open workplaces with the lowest degree of organization where the employee often stops working and leaves the workplace, so the most important causes of losses of working time are:

a) organizational-technical causes (insufficient coordination, irregular flow of material, improper scheduling of workplaces, lack of materials or low quality materials, staff incompetence, lack of information, irrational movements while working, inappropriate division of work, overloaded workplaces, inadequate or defective internal transportation, the lack of working area, non-discipline, inadequate control while working, inadequate categorization or evaluation of work, the lack of tools or  inappropriate tools, old or broken machines, etc.).

b) organizational-biological causes (inadequate room temperature, poor lighting, inadequate ventilation and air-conditioning, inappropriate vacation schedule, unsuitable working furniture, inadequate hygiene at work, too big a distance between the rooms, etc.).

Structure of available time for open workplace

Customer Relationship Management

New technologies, especially computer technology and Internet, together with the growth of e-trade, create a one-to-one relationship between a buyer and a seller. Customer Relationship Management – CRM became a path along which sellers gain, acquire and increase the number of buyers. 

According to the American Marketing Association, CRM represent a discipline in marketing which combines data bases and computer technology with consumer service and marketing communications. CRM creates one-to-one communication with consumer using data on buyer (demographic, industrial, previous purchase, etc.) through each communication channel. On the most simple level, that is a personalizing of e-mail or any other communication with a client, whereas on a more complex level CRM enables a company a consistent personalized marketing communication which a buyer can see in an advertisement, website or to phone a company.

Management in the garment industry on facebook

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Fashion industry

Producers of clothes today do their business in conditions of rapid dynamics of changes and unstoppable trend of globalization, with many innovations and large competition. Whole world is treated as a potential source of production, and at the same time as a unique market of garments with the following characteristics:

- consumers - demands are getting bigger and changes of customers’ needs happen very quickly, thus strengthening their influence on business,

- competition - it is stronger and more able every day (every new fashion item is just a “temporary monopole”),

- new technologies - new technology, new machines and different cultures change potentials and needs,

- purchase - producers of clothes are getting more dependent on the chain of supply due to continuous changes and matching the offer to the customers’ needs, and also because of compulsory increasing of efficiency and decreasing of costs as the basis of competition (no supplies, no mistakes, no delays…),

- market - business ethics is a changeable category, and intentions and trends of competition are hard to follow.

Why CAD/CAM

In garment industry produces hundreds of different clothes to thousands of variants. Thanks to scientific and technical progress in this field have developed the most advanced technologies in the design process clothing jeans clothing. Today's level of modern technology in garment industry varies from sewing machines to microcomputers, specialized sewing machines,  and second, the programmed microprocessor controlled sewing machines and robots, as well as the introduction computer system (CAD/CAM).

Last 30 years appears and contributes significantly to the development of electronic systems guided driving machines in the industry of clothing, with a number of automatic features, improved technical and a large number of additional devices. The appearance of micro-computers has enabled the connection of different production systems, the application of mechatronics and industrial robots. Immediately after the appearance of computers on the market started their application in business clothing manufacturer, after the operative preparation and production. Linking spatially distant computers, direct communication, using the same data, or their rapid transformation, connection with the preparation of the technical production process led to the emergence of the concept of CIM (Computer Integrated Manufacturing) in manufacturing clothing.

Market analysis

Consumers today have real possibilities to satisfy their needs for products on a better way than in the past, thanks to the standard, social-economic development, technical-technological progress, modern informational systems, cultural and educational progress. Depending on their purchasing power, consumers react to fashion. Fashion trends have economic, psychological and sociological influence on consumers. Consumers will often buy a new and prestigious product which is above their purchasing power, especially a "brand" garment, hoping to identify with a certain social group by doing so, and try to achieve a certain status. They want to be different - but not too much- so for that reason they accept certain features of a fashion trend, improvising and expressing their personality at the same time.

Problems of health and safety

Employees in industry often deal with problems of health, safety, motivation and efficiency of workers, depending on the production process and working space. According to the European Foundation for the Improvement of Living and Working Conditions in EU countries 62% of workplaces include repetitive movements of arms and hands, 46% body positions that cause pain and fatigue, 35% handling heavy burdens, 56% of jobs require work with the short timescale and 54% work in a fast pace, 42% do not allow vacations and 31% are against free rhythm. About 40% of all employees during at least 25% of their working time are exposed to at least three factors for the development of diseases of systems for movement.

Causes of bad organization

Analyzing the production in many garment industry is to see that there are several causes of bad organization and to:

1.      Causes of the work areas of employees

§          poor organization of work,

§          poor transport material,

§          insufficient training of workers,

§          poor working conditions,

§          weak protection in the workplace,

§          fluctuation of employees,

§          inadequate schedule of work and rest,

§          inappropriate system of compensation,

§          poor interpersonal relations and

§          various subjective reasons.

Needs fashion industry

At today's competitive market place, there is a need for business organizations to ensure continual improvement. Manufacturing garment companies experience growing pressure to improve quality, increase productivity, and reduce cost with limited resources. Technological system of garment production must enable expected quality of product, necessary scope of production, delivery of ready-made garments in the expected time, maximum use of capacity with minimum expenses. Because of a variety of designs of clothing articles and a great number of procedures in the production process, deviations and faults in different places and various frequencies occur. 

System OBM

Garment manufacturers in fashion industry are divided into leaders and those who copy (copyist). Leaders design a new product, impose and dictate new fashion helped by powerful centers of design and modern technology together with marketing company. Manufacturers who copy are late with production, but find their place in satisfying a large garment production market. Often they don’t strike back with the quality of products but there is also a completion between them.

The garment manufactures in Serbia work 80% by CMT (Cut-Make-Trim) system. Therefore, as wages and other operating costs rise they are largely required to swallow the price increases or risk losing clients to less expensive firms in lower-wage countries.  (Original brand name manufacturing) production for international markets is most likely currently unattainable for all but the most competitive apparel manufacturing firms already actively engaged. Especially as design and marketing, key components of the OBM production.

Why lean production

Production in many company demonstrate us one of way for must change organization in  garment manufacturing, because:

• reflects and supports target attainment and quality values for short term and long-term periods,
• development and engagement of all employees for improvement within the organization,
• resources of an organization (finance, IT, height-tech textile material and new cutting and sewing technologies) are coordinated with the quality of garment and organization values,
• overview of all processes in a garment company and change of the existing combination of processes, emphasis on shortening the technological time,
• indirect connection with customer satisfaction,
• organization will be successful only if it adequately motivates its employees,
• quantitative evaluation as better quality, increase of productivity and
• reduced stocks.

Development garment industry

Garment industry throughout the world has the same problem, and those are large supplies of finished garments that cannot find their customers. The industry of highly or less developed countries faces many crises and constant fall of production, loss of markets, workers being redundant, closing –up factories and moving production into countries with cheap manpower. Developed countries were forced to intensify researches of automatic systems of technology processes, thus leading to progress in the field of mehatronics, automatization and robotics and inventing new so-called intelligent sewing machines. Therefore it is necessary to pay attention to the education of engineers for garment industry and try to master technology production processes by applying the latest production techniques and technologies in order to adjust and survive on the market.