Abstract


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.


Introduction


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 eg. waiting, inspection etc.). One of the ways to reduce wastages can be to 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 division's 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.


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About the authors


H.S. Hanumantha Naik and S. S. Ramatal are associated with the Dept. of Textile Technology, GSKSJTI, K. R. Circle, Bengaluru, Karnataka & D. Sargunamani is associated with Textile Testing Laboratory, CSTRI , CSB, Varanasi, U.P, India.