A Division of Luen Thai
Replacing Legacy Systems with the AS400 System
Revised on 12 Apr 2003
Rationale
Problems with GJM’s Legacy Systems:
•
Too many sub-systems that are not integrated,
creating a lot of manual work and double handling
of data
•
Need to maintain numerous reference numbers
such as GWOS, FWOS, CWOS and EC, creating
internal communication problems
•
System is outdated, it was designed to handle VSS
orders, requirement for other Buyers are not
addressed
•
GJM does not own the source code for most the
systems, making enhancement difficult and costly
Rationale
Advantages of the AS400 System:
•
Sales, merchandising, material logistics and FG
invoicing modules share the same database,
eliminating double handling of data.
•
Control of data is enhanced through direct
download/upload of sales/purchase data to SAP-FICO
•
The entire system maintains one key reference
number, Internal Order (IO) number used by all
parties across companies
•
IT support is readily available
•
Users will operate just one system
Rationale
Disadvantages of the AS400 System to GJM:
•
AS400 does not have a pre-production system
•
GJM will have to use LT’s codes and formats
Implementation Strategy
Legacy systems to be kept:
•
GJM’s pre-production and sample making systems
such as SRS, SLS, OSS, SMV, BOM, PDM and
Gerber
Implementation Strategy
Legacy systems to be replaced:
•
FinPlan replaced by an formatted excel file
•
CMS replaced by IORS, but using gross YY in final
costing
•
Order details information in PSS replaced by an
formatted excel file
•
TIS, FSS, PSS replaced by Purchasing module
•
QTS replaced by Quota monitoring system
•
WMA, Accpac Trims replaced by ATL Logistics
inventory system and WareTrack
•
FPS replaced by Production monitoring system
Implementation Strategy
Documents to be eliminate or replaced:
•
D/N from MP to Logistics will be eliminate.
•
PC from MP to Production will be eliminate.
•
Order Placement Confirmation Form will be replace
by Sales Detail with sketch.
Implementation Strategy
Additional AS400 systems to be used:
•
Sales confirmation module, for sales monitoring
•
Invoicing system, with linkage to IORS, for better
control of prices
•
QA module, with linkage to the PO, to enable QA
team to key-in inspection report in the same
database
•
IO File Status Control for PI orders only
Implementation Strategy
Proposed Timetable:
•
Dec/2002 - CK orders (PYO and PI production)
•
Jan/2003 - CK orders (SL production) *Manual
•
Feb/2003 - Best/DDS orders
•
Mar/2003 - GJM-US orders
- GJM-UK orders
Implementation Strategy
•
To facilitate creation of PO in AS400:
o
Material Procurement will station a purchaser in
Panyu to support the master table encoding and
system updating
o
GJM’s purchasing will encode the Trims PO in
AS400
•
GJM-Panyu’s version will use ATL system as factory
logistics and inventory system
•
Due to the Sri Lanka is no AS400 connection. MP
should printout the report from AS400 and send it to
them. Example: Sales Report, IO Heading and etc.
Internal Order (IO) Coding System
Example: T 87008-8
Production Month (8th digit)
Split I/O (7th digit)
Customer Order No. (4th to 6th digits)
Customer Code (2nd & 3rd digits)
Product Line/Factory Code (1st digit)
Internal Order (IO) Coding System
 1st digit means product line/factory code
 2nd and 3rd digits refer to the customer code
 4th to 6th digits refer to serial internal order no.
 7th digit is always “-” and without meaning
 8th digit refers to the garment production month
Code
Month
Code
Month
1
January
7
July
2
February
8
August
3
March
9
September
4
April
O (letter)
5
May
N
November
6
June
D
December
October
Product Line/Factory Code
Creation of Internal Order (IO)
Creation of IO number
•
One style = one IO number, except:
o
Top/bottom set or coordinates which must be
packed together – assign one IO per set. In Sales
Confirmation, create multiple “partials” and
assign one style per partial.
o
CK order that uses multiple patterns and multiple
deliveries – assign one IO per style per pattern
GJM orders produce in LT factories
Merchandising:
•
Create LT-IO in Sales Confirmation, eg., V7X010
•
Indicate “T” (stands for GJM) in Sales Office field
•
Issue fabrics PO using LT-IO
•
Create IORS using T-IO using same numeric
sequence as the LT-IO, eg., T7X010
Purchasing:
•
Issue accessories PO using LT-IO
Material Logistics:
•
No change, receive/send materials based on LT-IO
GJM orders produce in LT factories
LT Production/Logistics:
•
No change, produce garment as usual
•
Prepare shipping documentation from LT factory to
HK as usual, send one set of document to GJM Rep
Office
Finished goods Logistics:
•
GJM Rep Office to issue invoice in AS400 invoice
using T-IO, plus commercial invoice for US custom
clearing
Customer List
Customer
Code
Description
Customer
Code
Description
3A
Victoria Secret Sleepwear Dept.
20/60
3T
British Home Stores Sleepwear
3B
Victoria Secret Foundation Dept.
25/30
3U
Walmart UK Sleepwear
3C
Victoria Secret Innerwear Dept. 50
3X
CK Men’s Sleepwear
3D
Victoria Secret Bra/Panty Dept. 01
3Y
CK Women’s Sleepwear
3E
Victoria Secret Cotton Dept. 70
3Z
Dillards Men’s Sleepwear
3F
Avon Sleepwear
7S
Limited Too Sleepwear
3G
Target Sleepwear
7X
A&F Sleepwear
3H
Walmart Sleepwear
7Y
Express Sleepwear
3J
Steinmart Sleepwear
11
Nautica Sleepwear
3K
BJ Wholesale Sleepwear
45
Sears Sleepwear
3L
ASDA Sleepwear
82
Dillards Fountain
3N
Debenhams Sleepwear
87
Dillards women’s Sleepwear
3P
D Perkins Sleepwear
97
Kmart Sleepwear
3Q
Lasenza Sleepwear
CC
Dunnes Sleepwear
3R
Evans Sleepwear
3S
Contessa Sleepwear
LL
Lane Bryant
Process Flow for AS400 Systems
Order Booking
Process Flow
US/UK Sales Office
PYO Merch/Purch
Update an formatted
Excel file for
Sales Forecast
Update
Sales Forecast
Update an formatted
Excel file for
Option Order
Update
Option Order
Production
Order booking
from
Direct Buyers
Order Details/
Customer PO
Update
Firm Order
Sales Detail
With Sketch
Update Production
Schedule (manual)
Print Report from
Sales Confirmation
Order Booking
Process description
•
GJM-US/UK update a formatted Excel file for the
sales forecast and option orders.
•
MP (Corp. Merchandising) update AS400’s Sales
Confirmation – sales forecast and option orders.
•
For non-GJM-US/UK orders, MP updates Sales
Confirmation based on order booking received from
Buyers.
•
For orders confirmed by Buyers but no PO to follow,
GJM-US/UK sends MP an Order Detail Sheet, for the
creation of Firm Order in Sales Confirmation. MP
should update the matching of IO# VS PO#.
Order Booking
Process description (cont’n..)
•
If PO is already available, GJM-US/UK sends a copy
of the PO to the MP for updating.
•
For non GJM-US/UK orders, MP enters Firm Order
in Sales Confirmation directly, based on order
details obtained from the Buyers, via email or PO.
•
If firm order can be referenced to a soft order, Firm
Order must be created under Option order module.
•
Production can print the Sales Details and Sales
Summary report from Sales Confirmation.
•
MP print out the Sales Detail from Sales
Confirmation with sketch for production.
Sales Detail with Sketch
SALES CONFIRMATION - Sales detail
Firm: 102120156 Crtby: 1374
6/12/02 LastUpd: 1374
6/12/02 Option: 102120011
Location
: T GJM - Panyu
Customer
: 87
Product month
: 3 March
Product year
: 2003
IO number
: T87158-3
Partial
:
Style number
: S32HN501
Model number
: CTTN KNIT BOXER
Cutting
: S Solid
Assigned line
:
Price terms
: LDP
Order quantity :
5406.00 PCS
DIL WOM SLEE
1
Efficiency/SMV : 11.67
EQ qty/Ttl SMV :
63088
Customer delvy :
Factory delvy
:
4/03/03
:
5/05/03
4/04/03
Fabric ETA
:
IN DC date
Garment wash
: N Non Wash
Flatlock stitch: N None
Embroidery
: N (Y/N)
Printing ( 0 ) : N None
Applique
: N (Y/N)
Sales Office
Quota Order qty
350
5406.00
:
Pre-production and Sample Making
Process Flow
US/UK Sales Office
PYO QA Sample Room
Create Sample
Requisition
(no change)
Make sample,
Calculate BOM, YY &
SMV
(no change)
PYO Merch/Purch
Send Tech Pack
To MP
Y
Require
costing?
N
END
Prepare quotation
And
Pre-costing
Pre-production and Sample Making
Process description
•
GJM-US/UK creates the Sample Requisition directly
in the SRS/SLS systems, indicating the style number.
•
For non GJM-US/UK samples, Requisition is entered
by MP in the SRS/SLS systems.
•
QA/Sample Room proceeds to make the sample and
updates the BOM, OSS and SMV systems.
•
QA/Sample Room sends Tech Pack to the MP via
email.
•
If quotation is required, pre-costing is calculated by
the MP using spreadsheet.
Merchandising and Purchasing
Process Flow
US/UK Sales Office
PYO Merch/Purch
IO No. created
In Sales
Confirmation
N
PYO Order?
Y
Quota PO
Create
IO Heading
(MP)
Purchase Quota
Create
IO File Status
(MP) PI only
Create
IORS
(MP)
Calculate mat’l
Requirements
(Purchaser)
X1
Merchandising and Purchasing
Process Flow
US/UK Sales Office
PYO Merch/Purch
X1
Fabric?
N
Y
Issue Pro-forma
PO
Fabric PO
Issue Fabric &
Accessories PO
(LTG/GJM Purchaser)
Send AS400 PO
To Vendor
(MP/Purchaser)
Inspect Fabric
(LTG QA)
Accessories PO
Merchandising and Purchasing
Process description
•
When a firm order is entered in the system, an IO
number is automatically generated.
•
If order is allocated to PYO, MP coordinates with the
Quota Officer to purchase appropriate quota.
•
MP proceeds to update the following:
o
IO Heading – product detail such as color, style
and size
o
IO File Status – technical information send to
Philippines factory only
o
IORS – final costing, using gross YY
Merchandising and Purchasing
Process description (cont’n..)
•
Based on the BOM, IO Heading, product detail and
order detail, MP and Purchaser calculate total
material requirement for fabrics and accessories,
respectively.
•
MP issues the pro-forma fabric PO per vendor to LTG
Purchasing Representative for system data entry.
•
The AS400 PO print-out is distributed by LTG
Purchasing Rep to the MP and Purchaser concerned,
together with the pro-forma fabric PO, for sending to
the vendor.
•
GJM purchaser create Trims PO using AS400 system
and send to the vendor.
Merchandising and Purchasing
Process description (cont’n..)
•
QA team schedules and conducts fabric inspection
based on the PO data and inspection instructions
entered in the system. Summary inspection result is
entered in the system.
Material Logistics - PYO
Process Flow
PYO Merch/Purch
Logistics/Shipping
PO for
Accessories
Execute
Materials Receiving
PO for
Fabrics
Execute
Materials Issuance
Update the inventory
Movement in
WareTrack
Material Logistics - PYO
Process description
•
GJM-Panyu will use ATL system as factory logistics
and inventory system. The receiving count on factory
receiving. And the sending will be equal to the
issuance to production.
•
Vendors are required to indicate the PO and IO
number on the delivery note/packing list/invoice upon
delivery. After physical receiving, PYO Logistics
updates the Receiving module by calling the IO or PO
number as reference. In case of discrepancy, PYO
Logistics calls the attention of MP or Purchaser
immediately to advise disposition.
Material Logistics - PYO
Process description (cont’n..)
•
PYO Logistics issues material to production based on
Material Requisition. The Sending module of AS400
is updated.
•
PYO Logistics ensures that physical inventory
matches system balances at all times.
•
PYO Logistics also use WareTrack as their
warehouse management system (ATL version and no
linkage to others system).
Material Logistics – nonPYO
Process Flow
PYO Merch/Purch
Logistics/Shipping
PO for
Accessories
Execute Material
Receiving at ATL
PO for
Fabrics
Execute Material
Sending at ATL
Execute Material
Receiving at Factory
(Not AS400 System)
Execute Material
Issuance at Factory
(Not AS400 System)
Material Logistics – nonPYO
Process description
•
Upon receipt of materials, ATL updates material
receiving based on IO or PO as usual.
•
ATL arranges loading and shipment of materials to
the Factory and updates material sending, including
pro-forma invoice used in customs clearing.
•
Based on the AS400 sending detail or packing list,
Factory Logistics updates its legacy inventory
system to record goods receipts.
•
Factory Logistics issues materials to production
based on Requisition and updates its legacy
inventory system to record goods issuance.
Production
Process Flow
PYO Merch/Purch
Production
IO Heading
Update Production
Schedule (manual)
X3
Check material
Readiness
Issue Material
Requisition (manual)
Update Production
Output in PMS
Production
Process description
•
Based on the order details in IO Heading. Production
Coordinator updates its production schedule
manually.
•
Production Coordinator can print a materials status
report from AS400 using IO number as reference key.
•
Once materials are ready, Material Requisition is
prepared for material issuance by Production.
•
Production output per process is updated by
Production Coordinator in the PMS system.
Finished Goods Logistics
Process Flow
PYO Merch/Purch
Logistics/Shipping
Production
Pack Finished
Garment
Y
Require
ASN?
Download EDI PO from
LT/Tellas FTP
N
Issue Packing
List manually
X2
IORS
Scan & Pack
(ASNxFGA)
Generate Sales Inv.
Packing List
Finished Goods Logistics
Process description
•
Before garments are packed, Logistics checks if
barcodes are required.
•
If yes, EDI PO must be downloaded from LT or Tellas
FTP for uploading in FGA, otherwise, garments are
packed as usual and packing list prepared manually.
•
For EDI PO’s, Logistics proceed with scan & pack and
generation of the packing list.
•
Packing list is forwarded to Shipping for the
generation of invoice.
Quota Sourced Through IE Company
Process Flow
IE Company
PYO Merchandiser
Summarize quota &
Order requirements
Confirm IE Company
Draft pro-forma
contract
Update quota
system
Issue draft
Pro-forma contract
Confirm contract
Prepare customs
handbook
Draft export license
Finalize export
License – Actual Qty
Send invoice
Quota Dept
Export license
Create Garment
PO in the system
Update quota
system
Settle payment
Quota Sourced Through IE Company
Process description
•
At least two (2) months before garment delivery, MP
provides quota and order detail to the Quota Dept,
who in turn names appropriate IE company.
•
MP drafts a pro-forma contract to the IE company,
who in turn copies the information in their letterhead.
•
MP reviews and confirms the IE contract by affixing
his/her signature on the contract.
•
IE company prepares the customs handbook.
•
MP sends a draft export license to the IE company,
who in turn confirms and types actual quantity.
Actual quantity is provided by Factory.
Quota Sourced Through IE Company
Process description (cont’n..)
•
Based on the export license and invoice sent by the
IE company, MP creates the Garment PO in the
system.
•
Quota dept updates the system and settles payment
with the IE company.
Quota Sourced Independently
Process Flow
PYO Merchandiser
Quota Dept
Submit China Quota
Requisition Form &
Draft Export License
Search quota
company
Negotiate price
& delivery date
Issue Quota PO &
Arrange payment
Receive final
visa/export License
Update system
Quota Sourced Independently
Process description
•
At least one (1) month before garment delivery date,
MP submits the China Quota Requisition Form and
Draft Export License to the Quota Dept.
•
Quota dept sources the quota and places the order to
the appropriate vendor.
•
Quota dept Issues the Quota PO from the system and
furnishes vendor all related documents.
•
As soon as the account is settled, Quota dept
receives final visa/export license from the vendor.
•
Quota dept updates the system.
Material Purchase Outside of PYO
US Nominated
Vendor
Invoice
PI/SL
Vendor
Manual PO
GJM
US/UK
Invoice
AS400 PO
Invoice
GJM
PYO
AS400 PO
Invoice
Manual PO
GJM
PI/SL
Material Purchase Outside of PYO
Process description
•
As a general rule, all material sourcing and
purchasing is handled in PYO except authorized local
purchase and Buyer’s nominated vendor.
•
Authorized local purchase should be supported by a
PO issued by the Purchasing team of PYO to
respective office/factory.
•
Nominated vendor shall be based on the list to be
provided by GJM-US/UK to the Material Procurement
Director.
Lace/Fabric Purchase with VAP
13
15
Payment for Lace/Greige
Fabric
Payment for VAP Charges
Account
12
14
Direct delivery to
VAP Vendor only
Invoice for Lace/Greige
Fabric
Invoice for VAP Charges
5
3
Encode Receiving/Sending
P/L or D/N with
AS400 FPC#
Lace/Greige Fabric
Mill
Issue AS400
Fabric PC
For direct delivery to
VAP Vendor only
Lace/Greige Fabric
Logistics
Panyu or ATL
4
2
9
P/L or D/N with
AS400 FPC#
VAP Vendor
8
7
Issue D/N for
VAP Vendor
Issue AS400 Fabric
PC for VAP
10
P/L or D/N with
Lace/Greige and VAP
AS400 FPC#
Finished Fabric
Logistics
Panyu or ATL
MP
1
VAP =
Value Added Process
Example: Dyeing, Printing and etc
Issue Pro-forma FabricPC
(Lace/Greige Fabric Price)
Issue Pro-forma FabricPC
(VAP Charges and mark
the Lace/Greige FPC#)
6
11
Encode Receiving/Sending
Lace/Fabric Purchase with VAP
Process Description
1.
MP issue pro-forma fabric PC for lace/greige fabric to
LTG staff for encoding. The unit price is for
lace/greige fabric only.
2.
MP sent the AS400 fabric PC to lace/greige fabric
mill.Nominated vendor shall be based on the list to be
provided by GJM-US/UK to the Material Procurement
Director.
3.
Lace/greige fabric mill delivery to ATL or Panyu. P/L
or D/N should show the AS400 PC Number.
4.
If the lace/greige fabric delivery to VAP vendor
directly. MP should pass the P/L or D/N to logistics.
Lace/Fabric Purchase with VAP
5.
Panyu Logistics or ATL encode the receiving and
sending.
6.
MP issue pro-forma fabric PC for VAP process with
the lace/greige fabric PC number to LTG staff for
encoding. The unit price is for VAP charges only. Also
MP should type the lace/greige PC number and
“Lace/greige fabric is supplied by Luen Thai” on the
remarks
7.
MP sent the AS400 fabric PC to VAP vendor.
8.
If the lace/greige fabric delivery to Panyu. MP should
issue D/N to logistics for send out the lace/greige
fabric to VAP vendor.
9.
Logistics send the lace/greige fabric to VAP vendor.
Lace/Fabric Purchase with VAP
10. Finished fabric delivery to ATL or Panyu. P/L or D/N
should show the lace/greige and VAP AS400 PC
number.
11. Panyu Logistics or ATL encode the receiving and
sending.
12. Lace/greige fabric mill issue invoice to account.
13. Account issue payment to fabric mill for lace/greige
fabric.
14. VAP vendor issue invoice to LTG account.
15. Account issue payment to VAP vendor for VAP
charges.
End