Exam 3 Study Guide Autumn 14 Chapter 9 Pre Production Processes Factoring The business of purchasing and collecting accounts receivable or of advancing cash on the basis of accounts receivable Factor a financial agency in the apparel industry Procedures o Running a credit check on a firm o Approving a credit line to the company o Approving the orders for shipping to the company o Receiving invoices from the company s suppliers o Advancing the cash needed to pay the invoices to the company PDM and sizing standards Selection of vendors Useful for integrating all segments of development processes Pattern Design System PDS codes measurement dimensions Vendors source suppliers Vendors Company from which textile producers apparel manufacturers or retailers purchase components or products necessary in their production and distribution operations ex fiber sources fabric sources apparel product sources Variables that influence vendors o Lead time needed to secure the goods o Past history of on time delivery o Quality of goods o Whether the vendor uses supply chain management strategies o Minimum yardage requirement for an order o Financial stability of the vendor Lab dip Registration The vendor supplied sample of the dyed to match product such as fabric zipper button knit collar or cuff or thread Fabric swatch submitted for accurate color matching For printed textiles with more than one color screen specified placement for each of the screens to produce the multi color print Accuracy of placement of a print Strike off Grading Sample of fabric by the textile vendor Pattern pieces made for each size Grade rules The fabric that remains in the spaces between pattern pieces on the marker representing the amount of fabric that is wasted Hand grading machine grading and computer grading Specifications Construction specifications Measurement specifications o Includes chest neck waist circumference jacket hem circumference back length sleeve length Tolerance Fallout The stated range of acceptable dimensional measurements as a or in inches of the size specifications The fabric that remains in the spaces between pattern pieces on the marker representing the amount of fabric that is wasted Chapter 10 Sourcing Decisions Social responsibility A philosophy whereby a company takes into consideration human rights labor conditions and environmental implications when making business decisions Sourcing Decision making process of determining how and where a company s produces will be produced and distributed Important to both apparel manufacturers and to retailers o Helps to determine a company s competitive edge o Price advantage exclusivity workmanship Sourcing Decision Criteria Internal Company and Design Criteria o Company s sourcing philosophy o Labor requirements costs productivity o Fabric materials quality and availability o Quality assurance and quality control standards o Equipment and skills required o Required plant factory capabilities o Social responsibility and environmental impact External Political and Geographic Criteria o Trade agreements and other governmental regulations o Shipping distances and expected turnaround time o Infrastructure of the country and availability of materials supplies o Political and economic conditions of the country o Natural disasters Tariffs Tax assessed by governments on imports Quotas An import tax is a fee assessed by the government on certain goods that it wishes to restrict or limit Imposed on goods to make more competitive in price with domestically produced goods Limits on the number of units kilograms or square meters equivalent in specific categories that can be imported from specific countries A type of protectionist trade restriction that sets limits on the number of units that can be imported into a country Used to benefit the producers of a good in a dometic economy The newly industrialized countries are typically subject to quotas by the US and other developed countries Two types imported o Absolute Quotas limit the quantity of goods that can be o Tariff Rate Quotas set a limit after which a higher duty is charged on goods entering the country NAFTA North America Free Trade Agreement Eliminated quotas and tariffs for goods shipped between US Canada and Mexico HTS 9802 Production Mexico and Canada benefitted CBI nations suffered The Harmonized Tariff Schedule Section 9800 of the US tariff regulations textiles and apparel are produced under the provisions of preferential trade agreements such as the North American Free Trade Agreement or the Caribbean Basin Trade Partnership Act receive tariff reductions or eliminations Free trade agreements FTA Reciprocal reductions in tariffs among the United States and countries This sourcing option allows the manufacturer to control the design and cut of the garments while taking advantage of lower labor costs in other countries Full package FP contractor A type of service option whereby the apparel contractor provides pre production services fabrics trims supplies and labor Chapter 11 Production Processes Manufacturing environments Book definition Production circumstances including choice of production facility location of production production process and cycle time to produce goods Depend on o Available technology o Price zone o Geographic location of production Three types of production processes mass production fast fashion production mass customization Mass production Type of production process Capitalization of economy of scale Easier to forecast Slightly longer lead time and production time Fast fashion production short cycle Fast fashion production book definition Manufacturing of fast fashions in which products go from concept to retail store in less than three weeks Short cycle production book definition Mass production of goods that can be produced quickly It is especially suited to high fashion products that are produced close to their market demand Mass customization vs made to measure Mass customization book definition The use of computer technology to customize a garment style for the individual customer by individualizing the fit to the customer s measurements by offering individualized combinations of fabric garment style and size options or by personalization of a finished product Made to measure book definition A fully customized process where a garment is made specifically for one individual based on his her measurements and preferences Sell one make one Customization points post production