Exam 3 Review Autumn 2013 Chapter 9 PreProduction Processes Factoring business of purchasing and collecting accounts receivable or of Factor financial agency in the apparel industry advancing cash on the basis of accounts receivable PDM Selection of vendors lead time needed to secure the goods past history of on time delivery quality of goods whether the vendor uses supply chain management strategies Minimum yardage requirement for an order financial stability of the vendor Lab dip fabric swatch submitted for accurate color matching Registration accuracy of placement of a print strike off sample of fabric by textile vendor grading pattern pieces made for each size Specifications Spec sheet with all fabrics trims findings and construction details accompanies pattern Measurement specifications includes chest neck and waist circumference jacket hem circumference back length and sleeve length Tolerance acceptable dimension variations in measurement specs Fallout waste fabric that cannot be used don t want more than 20 Computers help by no overlapping saves 2 in fabric on average Spreading process of unwinding large rolls of fabric onto cutting tables Production cutting fabric laid flat across width from selvage to selvage Chapter 10 Sourcing Decisions Social responsibility Triple bottom line people planet profit Consider human rights labor conditions environmental implications Sourcing decision criteria Internal The company s sourcing philosophy Labor requirements costs productivity Fabric materials quality and availability Quality assurance control standards Equipment and skills required Required plant factory capabilities Social responsibility and environmental impact External Trade agreements and other governmental regulations Shipping distances and expected turnaround time Infrastructure of the country availability of materials and supplies Political and economic conditions of the country Natural disasters Tariffs An import tax is a fee assessed by the government on certain goods that it wishes to restrict or limit Tariffs and duties are taxes on imports Imposed on imported goods to make more competitive in price with domestically produced goods Quotas limits the amount of an import NAFTA North American Free Trade Agreement Eliminated quotas and tariffs for goods shipped between the U S and Mexico and Canada benefited and the Caribbean Basin Initiative Canada now trades 80 of its exports with the U S up from 60 Canada and Mexico nations suffered twenty years ago HTS 9802 Production Made and cut in US shipped for assembly tariff is on value added only Provides flexibility for needs at the time Safeguards against natural disasters or political unrest Nike is one of most diverse contracting systems Free trade agreements FTA Full package FP contractor Chapter 11 Production Processes Manufacturing environments production facility location of production choice of production process and cycle time Mass production Capitalizes on economy of scale Easier to forecast Slightly longer lead time and production time Production processes and manufacturing environments depend on Available technology Price zone Geographic location of production Fast fashion production short cycle accelerates design to delivery by as much as 90 Cuts costs through out the process Good for high fashion products Apply PDM PLM here Mass customization vs made to measure Mass customization ultimate in customization of fit to consumer a design variation Already designed That design is just being customized KEY point customer selects and pays for the product before it is produced Sell one make one Made to measure is a fully customized process Single hand system Sample hand Used for couture or very high priced apparel Piece rate The number of pieces completed per day Work in progress length of time in process Operator 1 opens bundle 2 sews 1 2 steps 3 rebundles and passes to next sewer Flexible manufacturing Any departure from traditional mass production system toward faster smaller or more flexible production units that depend upon the coordinated efforts of minimally supervised teams Involves Reorg existing equipment Dev new equip Reorg routing of production Reorg workers into teams and cross train Agile manufacturing combination of technologies that integrate retailers and suppliers to manufacturing facility Sew by or counter sample contractor s sample trouble shooting Garment dyed dye garments during finishing Freight forwarder arranges shipment of the goods Export agent used to assist the manufacturer that contracted the goods the importer Customs broker in the US helps import products produced for the company in another country Fee based on transaction not the number of units Chapter 12 Distribution and Retailing Direct marketing channels straight to customers Limited marketing channels through store or other non store venues Extended marketing channels through wholesaler and then to retailer Mass distribution available to as many customers as possible through a variety of outlets image Selective distribution distributed only through certain stores Most national brands may establish minimum order Geographic region limitation Exclusive distribution manufacturers limit the stores to create an exclusive Flow through facilities move merchandise with little if any time in storage Distribution centers distribute to their different stores stock keeping units UPC bar coding Quick Response systems EDI Retailer the company or business that makes a profit by selling goods and services to the ultimate customer Department stores divide functions and merchandise into departments Fashion oriented merchandise assortment Variety of services for customers credit cards wedding registry gift wrap Merchandise offered at full markup price with seasonal sales At least 50 employees Operate in stores large enough to be shopping center anchors May have in store shops Specialty stores focuses on a specific type of merchandise Carry one of the following o one category of merchandise or a few closely related categories jewelry footwear intimate apparel o Focus on merchandise of a well defined target market men women cyclists plus size young mothers o Carry the merchandise of one manufacturer or brand Liz Claiborne Polo Ralph Lauren Factory outlet stores Independents Burlington Coat Factory typically irregulars seconds overruns or leftovers from manufacturers or retailers Discount stores Carry brand name merchandise at less than traditional