Session 7 Background of Hong Kong Apparel Industry 1 Schedule Lecture – 2 hours 15 mins Half-time Break – 15 mins Knowledge Feedback – 20 mins SFQ – 10 mins Institute of Textiles and Clothing 2 The Apparel Industry Ready-to-wear industry vs. haute couture Types of ready-to-wear companies organisational structure of apparel companies Merchandising philosophies Institute of Textiles and Clothing 3 Ready-to-wear (RTW) Industry Nature of industry – mass manufacture using modern production machines and processes Other terms besides RTW; “off-the-peg”, “prêt-a-porter”, “moda pronto”, “sing-yi” Institute of Textiles and Clothing 4 Ready-to-wear (RTW) Industry How has it been possible? Advent of “SIZING” – a combination of standardised body dimensions, industry and company sizing policies, design and wearing ease. Formation of SIZES – an art + a science Institute of Textiles and Clothing 5 Haute Couture French for “high fashion”, today associated with expensive ready-to-wear. Characteristics of couture apparel are small quantities, elegant fabrics and embellishments, original designs, considerable hand technique and finishing, and sized to fit individuals. Institute of Textiles and Clothing 6 Types of RTW Apparel Producers - “There is no country in this world that do not have an apparel industry” According to Kurt Surmon Associates, following are categorization of suppliers; manufacturers, contractors, importers/packagers Licensors of well-known designer names. Institute of Textiles and Clothing 7 organisational Structure of Apparel Companies Institute of Textiles and Clothing 8 Fashion Development - - Interpret trend forecasts and create designs to be produced Question 1– How strong is Hong Kong in this department? Question 2 – How can it be made even stronger? Institute of Textiles and Clothing 9 Merchandising Management process of collecting and assimilating information from a variety of sources and drawing conclusions from that information regarding the product offering. The process develops strategies to have right merchandise, at the right price, at the right time, in the right amount, at the right locations to meet the needs of target consumers. Institute of Textiles and Clothing 10 Merchandising Question – How different is “merchandising” in the Hong Kong context? Institute of Textiles and Clothing 11 Sales/Marketing Sells company’s merchandise to retail buyers using own staff or employing independent agents - Question – What are the pre-requisites to be a successful sales/marketing professional in the apparel industry? Institute of Textiles and Clothing 12 Production, Planning and Control The preproduction, production, planning and control involves material purchase, production, quality control and shipping of the merchandise. Own factories, contractors, out-sourcing. - Question – Why is China so successful and places like US and EU are not? Institute of Textiles and Clothing 13 Advertising/Sales Promotion Together with fashion development and sales/marketing, this area focus on creating promotional and advertising strategies and tools to sell the merchandise to retail buyers and consumers Institute of Textiles and Clothing 14 Advertising/Sales Promotion Normally a professional agency is hired. - Questions – What sort of budget do brands give to this area and where??? Institute of Textiles and Clothing 15 The Fashion Supply Pipeline Institute of Textiles and Clothing 16 16 Major Components of Industry Component Suppliers – provide raw materials (textiles) and trimmings, Finished Product Suppliers –manufacture finished products of apparel and accessories, Retail Distribution – all forms of retailing, linking manufacturer to the consumer. Institute of Textiles and Clothing 17 Apparel Product Categories An examination of categorization will help in understanding the diversity of apparel organisations Categorization – by types of merchandise, prices of products/brands, standard industry classification system Institute of Textiles and Clothing 18 Apparel Product Categories Gender, Age, Size Range, Product Category Gender – e.g. Levis in men’s apparel then expanded into women’s and children’s, Liz from women’s to men’s and children’s Questions – Why do producers specialised in one category? Institute of Textiles and Clothing 19 Apparel Product Categories organisational structure of retailers also relates to these categories of apparel, e.g. women’s wear buyer buy from women’s wear manufacturers Within each primary category are subdivided into additional categories and here specialisation can occur. continue Institute of Textiles and Clothing 20 Apparel Product Categories Such classifications are by type of garments e.g. outerwear (coats, suits, jackets, rainwear), dresses, blouses, sportswear and active wear, eveningwear, bridal dresses, maternity wear, uniforms, fur, intimate (foundations, lingerie and loungewear) Size range – missy, junior, large, tall, etc. Institute of Textiles and Clothing 21 Apparel Product Categories Questions – How are the classification made in the brand of apparel that your apparel company produced? Besides size range, also consider age range, e.g. junior, missy, women, etc. Institute of Textiles and Clothing 22 Apparel Product Categories Tailored clothing – structured or semistructured suits, coats, separates such as sports jackets and dress slacks Sportswear – casual pants, jeans Active sportswear – athletic clothing, golf wear, swimwear, tennis wear, etc. Furnishings – dress shirts, casual shirts, neck ties, hats and caps, accessories Uniforms and work wear – overalls, work shirt and trousers Institute of Textiles and Clothing 23 Apparel Product Categories categorization by Wholesale Price Zones - Designer (most expensive) - Bridge (between designer and better) - Better (generally nationally known brands) - Moderate (reasonably priced lines) - Mass (mass merchandisers and discount stores, budget lines) Questions – any examples from the U.S., U.K. and locally Institute of Textiles and Clothing 24 Apparel Product Categories - categorization by Wholesale Price Zones Ck, Donna Karan, YSL, Armani, Prada AX, DKNY, Ellen Tracy Jones NY, Liz, Nautica. Re-union Jantzen, Dockers, Levis, Guess? Walmart Institute of Textiles and Clothing 25 Apparel Product Categories - - - categorization by Brand Name Classifications National/designer brands – label distributed nationally, represent image, quality and price-point to customers Private label brands – label owned by specific retailer for use in their own stores Retail store/direct market brands – name of retail chain, used exclusively on items in store Institute of Textiles and Clothing 26 Apparel Product Categories - categorization by Brand Name Classifications All other brands – miscellaneous labels Non-brands – no significant identity, awareness or meaning Institute of Textiles and Clothing 27 Apparel Product Categories categorization by Standard Industrial Classification (SIC) Codes Different in different countries, e.g. US – 2251 Women’s full-length and kneelength hosiery US – 2326 Men’s and Boys’ work clothing Institute of Textiles and Clothing 28 Quick Response in Apparel Industry Institute of Textiles and Clothing 29 29 Apparel Manufacturing organisation 30 Operations in Apparel Manufacturing Pattern – development, grading, lay planning Stock-room – fabric and trimmings Cutting – spreading, cutting and bundling Sewing – prefabrication, assembly, finishing Pressing – ironing, pressing, steaming Inspection – initial, final and audit Warehouse – packing, shipping Institute of Textiles and Clothing 31 Technology-enabled Manufacturing Systems Garment Production Systems Straight Line System Conventional Bundle System Progressive Bundle System Unit Production System Modular Manufacturing System Institute of Textiles and Clothing 32 Garment Production Systems Straight Line System Very successful and popular mass production system in the 50’s but not so today Production unit is single garment, assembled in sequence and passes from operation to operation. Layout planned and chutes are custom made with operator seated behind/opposite the next one. Work fed by gravity chutes or pushing along bench, conveyor can be used. All operations takes same time to complete. Each operator make same amount of money determined by output at end of the line. Institute of Textiles and Clothing 33 Institute of Textiles and Clothing 34 34 Straight Line System Advantages: - Low level of work-in-progress is accumulated. Throughput time can be as little as the labor content - No back tracking of material ad less material handling time - Small space is required for each operator - Shading control is extremely easy Institute of Textiles and Clothing 35 Straight Line System Disadvantages: - Even a minor product change cannot be accommodated - Quality problems easily accumulate. - Machine breakdown can be critical and troublesome. - specialisation and workplace engineering is difficult. - Pre-production planning skill is essential. - The line is paced by the slowest operation. Applications: - Production of simple garments e.g. underwear - Production continues for lengthy periods, say 8 weeks or more Institute of Textiles and Clothing 36 Garment Production Systems Conventional Bundle System - A common system of mass production in the 60’s - Production unit is a bundle of cut parts to be assembled into certain number of garments. Specific quantity of parts in the bundle is determined by number of fabric plies and weight of bundle. - The operator receives bundle from central store, unties bundle, perform the sewing, cuts ticket and reties bundle. Institute of Textiles and Clothing 37 Garment Production Systems Conventional Bundle System - She the returns bundle back to store where it waits until the next operation and the process repeats until the garment is completed. - Operators of specialised skills are independently working at own pace and paid by piece rates. Institute of Textiles and Clothing 38 Institute of Textiles and Clothing 39 39 Conventional Bundle System Advantages: Absenteeism does not cause many problems. Pre-production planning is not critical. Operators are encouraged to work as fast as she can. The system rewards a high individual productivity. Uniform level of quality can be achieved. Disadvantages: Very high level of WIP is required. A storage area is needed to hold WIP that is not easy to control. Throughput time is lengthening to a month or more. Material handling time is spent substantially. Institute of Textiles and Clothing 40 Conventional Bundle System Applications: - Orders in low to medium volume. - Conventional style of production with less managerial skills Institute of Textiles and Clothing 41 Garment Production Systems Progressive Bundle System Widely used system in the 70’s Engineered operations are laid out in sequence. Each operators does her bundle and passes it directly to the next operators, as the garments are gradually assembled as they flow sequentially in bundle form. If bundle truck/clump truck used, bundle tying is often not required. Inter-process bundles are temporarily stored in between neighboured operations. The amount of machinery for each operations is determined by the output required. Institute of Textiles and Clothing 42 Institute of Textiles and Clothing 43 43 Institute of Textiles and Clothing 44 44 Progressive Bundle System Advantages: The line is easier to balance and control. Uniform quality can be ensured by in-process control. Semi-skilled labour requires less training time and cost. Individual performances can be monitored by incentives. Disadvantages: High investment on machine cost. Short run production is not adaptable. High level of WIP extends throughput time. Complicated management skill is required. Institute of Textiles and Clothing 45 Progressive Bundle System Applications: - Basic garments with little change. Lengthy production runs on the same style. Institute of Textiles and Clothing 46 Institute of Textiles and Clothing 47 47 Garment Production Systems Unit Production System - Major advance made in the 80’s when computers were used to plan, control and direct the work flow through the system. - The production unit is a single garment. All parts of a garment unit is clamped by a carrier which automatically transports from station to station along the overhead transportation system. - The work stations are so designed that the components are presented at the earliest position for handling. Many operations can be performed without removing the work from the carrier. - After sewing, disposal is automatic as the operator press a button and the carrier progresses to the next operation according to a pre-determined sequence. Institute of Textiles and Clothing 48 Unit Production System Advantages: - Bundle handling and matching is completely eliminated. - Dramatic reductions in WIP and throughput time. - Repairs tends to be lower and repair tracking is easy. - Working condition is improved. - Computers automatically control the workflow and balancing - Many styles can be produced simultaneously on one system. Institute of Textiles and Clothing 49 Unit Production System Disadvantages: - High investment per work station (US$4-5k). - Its fixed physical configuration takes up large space. - High maintenance cost and operating cost. - Pre-production planning is essential. - Frequent job changing for balancing is required Applications: - Fashioned garments with quick response. - Orders with low to medium volume. Institute of Textiles and Clothing 50 Institute of Textiles and Clothing 51 51 Institute of Textiles and Clothing 52 52 Unit Production System http://www.eton.se http://www.eton.se/CompanyFacts/Movies/knapp_loading_bil d.jpg http://www.eton.se/CompanyFacts/Movies/knapp_unloading_ text_red.gif http://www.eton.se/CompanyFacts/Movies/knapp_eton_text_ red.gif http://www.eton.se/CompanyFacts/Movies/knapp_automatic_ text_red.gif Institute of Textiles and Clothing 53 Garment Production Systems Modular Manufacturing System Used successfully in Japan, Europe and US since 90’s Groups operators into teams or modules of 5-17 crossed trained operators. The team work on one garment at a time with operators standing at their work stations and rotate to different machines as they work. It can assemble an entire garment or sub-assembly of more complex product. Arrangement follows a logical operation breakdown. The team inspects their own work, besides inspiring teamwork and improving morale, it enhances quality and reduces worker turnover. Institute of Textiles and Clothing 54 Garment Production Systems Modular Manufacturing System Layout is usually in a U-shape with more workplaces than operators. Operators move between operations within module whenever extra WIP exists. Team paid as a group for work quantity and quality, or a time basis instead of the traditional piecework system. Time spent per garment is also little; e.g. T-shirt 3 mins, Pull-on pants 6 mins., unstructured jacket 25 mins., lined blazer 40 mins., tailored coat 120 mins. Institute of Textiles and Clothing 55 Modular Manufacturing System Advantages: - Lower level of WIP frees up capital tied up and floor space. - Fast throughput time enables quick response and prompt delivery. - Quality becomes a team responsibility and monitored at source. - Peer pressure encourages a team spirit and discourages absenteeism. - The system is highly flexible with style changes. Institute of Textiles and Clothing 56 Modular Manufacturing System Disadvantages: Training time and cost is increased. It requires considerable changes in management philosophy. specialised equipment is poorly utilized. Operators cannot develop the rhythm and pace of high performance. Individual effort is difficult to recognised within the group. Applications: Fashioned garments with quick response. Orders with low volume and frequent changes. Company with mutual trust between management and operators. Institute of Textiles and Clothing 57 Garment Production Systems Automation – Many technologically advanced sewing machines, some computerized, help to speedily and accurately perform the various steps in assembling a garment, e.g. machines that complete complex operations like shirt collars and tailored jacket pockets. Institute of Textiles and Clothing 58 Institute of Textiles and Clothing 59 Garment Production Systems Robotics in Garment Production R & D stages, limited use. The use of robotics has very much defied in apparel production due to the limpness of the material, however, it is slowly been used in limited areas such as moving fabrics in mills, vision systems and tactile sensing system to locate fabric pieces, pick and place. Institute of Textiles and Clothing 60 Rivan Robotics Arm Institute of Textiles and Clothing 61 Epson Scara Robotics Arm Institute of Textiles and Clothing 62 Institute of Textiles and Clothing 63 63 Current Major Industry Trends Mergers & Acquisitions Vertical operations Globalization Electronic Information & Communication A Changing Consumer Rapid Transfer of Fashion Reduced Response Time (Quick Response) Redefining the Business Improved Industry Relationships (Supply Chain) Increasing Customization (Mass Customization) Social Responsibility Sustenance Institute of Textiles and Clothing 64 Reading List 1. Ready-to-wear apparel analysis, P. Brown/J. Rice, Merril Prentice Hall. 2. Clothing Technology, Verlag Europa, Lehrmittel Nourney, Vollmer GmbH & Co. 3. Introduction to Clothing Manufacture, Gerry Gooklin, BSP. 4. Introduction to Clothing Production Management, HJ Chuter, BSP 5. Computers in the Fashion Industry, P.Taylor, Heinemann 6. Carr & Latham's Technology of Clothing Manufacture, DJ Tyler, Blackwell Science. Institute of Textiles and Clothing 65