Cost related to quality or wastage reductions have significant effect on overall profit for any industry. Internal cost spent by a company and savings made by reducing internal throughput time or rework or any type of wastages are important for management to keep the industry economically in good health. Keeping this in mind an attempt has been made to study and eliminate waste i.e., Non Value added (NVA) activities in cutting section so as to save time and cost and reduce internal throughput time. Vendor evaluation for proper supplier is also identified to reduce rework. Results showed that considerable amount can be saved.
Cost is an important factor in any industry as most of the industries focus on more profit. Though, there are different costs involved cost reduction internally spent by an industry by finding wastage, preventing and correcting defective work would result in huge savings. Value added (VA) activities focus on any activity that customer is willing to pay for. Non Value added (NVA) activities describes that the customer does not consider as adding value to his product (For e.g. waiting, inspection etc.). One of the ways to reduce wastages can be reduce/eliminate NVA that can result in reduction in time, cost and lead time. Lead time means Duration/Time required between first receipt of a customer order and customer receipt of the product or service. It varies with the purpose of analysis. As it is known that time is money, if more time is required in a product or service more money is involved. By reacting quicker to make a product as per customer demand the company can invest less money and more savings. Vendor evaluation for supplier performance is the materials management divisions objective to maintain and improve the quality of status of vendor base. Therefore a study was carried out in a garment industry located at Bangalore specifically at cutting section about the process flow to identify NVA so as to eliminate them for saving time, cost and improve internal throughput time (lead time) as well Vendor performance was analyzed for cost savings and details have been presented in this paper.
Materials and Methods
Fabrics consisting of 6 different styles to produce garments having length X width of 6 m x 1.45 m to produce 220 nos. of garments in each style were considered. Stop watch method used to study the time required in each step of process involved in cutting and initial and final time was noted. Total time required for the process is sum of difference between initial and final time of each step.
The steps considered in the process are as follows:
Fabric received in cutting from stores > spreading > Marker sheet spreading > Cutting parts > Numbering > Shade and panel Checking > Fusing > Bundling > Cut auditing
Value added and Non Value added an activity in each step wherever found was identified for the above process for each style and the time in minutes is noted. Data collected from the industry for 3 months fabric rolls received in metres was used to evaluate Suppliers performance.