Coats Digital has announced that Shanghai Jiale Company Ltd., a leading global fashion manufacturer of knitted outerwear and sportswear, has significantly reduced the time it takes to produce core styles from 15.9 minutes to 11.28 minutes with Coats Digital’s GSDCost solution.
The implementation has resulted in an overall SMV reduction of 30.4 per cent on the factory floor, as reported by Coats Digital.
Following a rigorous training programme from GSDCost experts, Jiale has established its own robust Standard-Minute-Value (SMV) library for core styles, which has also benefited cost management, capacity planning, production planning and employee payroll accounting teams across the business. The success of the implementation has resulted in the solution being adopted by Jiale Group’s production base across Indonesia.
Prior to implementing GSDCost, Jiale Shanghai lacked a scientifically-based method-time-cost standard to create accurate cost and capacity forecasts. As a result, new product quotations were incorrect and inconsistent since they were based entirely on non-standardised historical data, previous experience and guesswork. This subsequently led to unquantifiable efficiency targets, uncertain production capacity, unbalanced production lines, unachievable working incentives and unpredictable manufacturing costs.
Michael Zhong, IE Director of Jiale Group, said, “In the past, we established standard hours through our own time studies and historical experience. This was time-consuming and labour-intensive, and subject to external interference from subjective factors, so the accuracy of standard working hours could not be guaranteed.”
Following the implementation of GSDCost, Shanghai Jiale was able to establish international standard time benchmarks based on standard motion codes and predetermined times. This enabled the sales, costing, planning and manufacturing teams to communicate efficiently using the same language, based on a scientific method for correctly analysing manufacturing costs.
Michael Zhong added, “GSDCost is a very important project for the digital transformation of the group. Through GSDCost, a standardised production process has now been established, which has successfully been applied to other processes in the production management lifecycle, such as: capacity planning, planning management, production efficiency management, production line balancing and employee skills training. Finally, through GSDCost we have significantly improved management visibility and achieved one single version of the truth that benefits all team stakeholders. The GSDCost system has consequently and greatly improved our ability to deal with complex cost management scenarios, and ensured the efficient and smooth communication between factories and business departments, since critical information can now be clearly visualised and communicated on the same platform.”
Bella Yang, GSD Project Director of Jiale Group, commented, “By reducing our initial SMV of 15.9 minutes to 11.28, our manufacturing costs have reduced significantly,” adding, “As a result, we can now capitalise on additional order opportunities across all business units.”
Boris Lu, Customer Success Manager, Coats Digital, averred, “The determination of Jiale management to promote the GSDCost project, from project establishment to customer and staff buy-in, has been exemplary. The team showed great enthusiasm and determination to successfully overcome an initial change-resistant internal culture from the top down. Through the rigorous training of the GSDCost team, the Jiale team soon quickly grasped the scientific standard working hour management system and gradually established a standard database that has achieved remarkable results across the whole business. The success of the Shanghai factory has greatly inspired Jiale’s customers, and we are delighted that the group headquarters has decided to officially roll out GSDCost across its Indonesian production base, as a result.”
