When it comes to garment production, the first thing that a manufacturer needs to consider is the cost of raw materials. When a manufacturer can source cheap, then it has a better chance to make the margin which was otherwise not possible to have by the manufacturer entity.
One of the methodologies for the companies is to follow the principles of the lean manufacturing system that makes the operation of the business efficient and also helps the company to keep a systematic approach in the business.
In this blog, we will look into the value chain of the garment industry and how it can create a pattern of using lean methodologies to streamline the production process and gain better margins from operations.
1. Deep Understanding of the Value Chain
In the garment industry, there is something that one needs to understand first: the value chain under which the business operates as a manufacturer. One needs to identify the areas where it might need RFID solutions for the waste management part of the business or to tag each item and classify those under each price band.
To make the system cost-effective and ensure that the manufacturing process falls into the system then one needs to take care of the value chain and find in which area one can extract the highest margin and make the business cost-effective.
2. Follow the Kaizen Philosophy in the Process
In the Kaizen philosophy, there is no such claim of making bold and big changes. Rather it’s more focused on applying the incremental changes that are effective for the process to enhance the quality of manufacturing.
A person who is following the Kaizen philosophy in the manufacturing unit can implement small changes in their garment production unit and that will make the process efficient and will increase the operational leverage of the business.
3. Adapting to Just-in-Time Manufacturing Process
Japanese carmakers like Toyota first applied the Just-in-Time manufacturing process. Here, one only starts to manufacture when the brand receives the order, and through that, they can reduce the risk of manufacturing excess orders and ensure that all the stocks are there in the inventory, which will get sold in the front. Hence, no capital gets wasted in manufacturing each unit of the item.
In the garment segment, one has the burden of excess stock, and to reduce that, a manufacturer can keep the order coming from multiple clients, which will reduce the dependency on the item to get sold, and hence, the manufacturer can retain the margin.
4. Follow Through 5S Methodology
The 5S Methodology is the process where it involves the 5 steps of manufacturing that are required in garment manufacturing units to increase efficiency. Sort, Set in order, Shine, Standardize, and Sustain are the 5S that help the manufacturer streamline the operational activity of the unit.
It increases the capacity rate, and the use of RFID retail tracking is the use of the system that can enhance productivity and reduce error in the manufacturing unit. These are some of the most common elements that a garment industry needs to increase the output of the venture.
