Managing information is crucial rather critical for streamlining operations. Gone are the days when we could get away with one month delay with the customer. Cajoling customer for time extension is not possible now. We have to be on time every time to minimize lost profits which can happen for other reasons too. It is time we lay down SOPs which reduces costs, optimizes labour, and improves quality, compliance, safety and operational efficiency. It is here that ERP software solutions streamlines operations with ease, says Piyush R. Vyas, a Diploma holder in Administrative Management and International Marketing who is with the Apparel Industry since 1975.
[bleft]ERP will not produce, ERP will not think. To make ERP successful, it requires consent of all in the organization. If we do not manage ERP, our efforts and money will go down the drain[/bleft]
The production in a Garment Industry gets delayed for several reasons. Beginning with the batch setting which takes its own time, say two days before the output slowly builds up – all taken in our stride – nothing new. Naturally the delivery date remains as is and that’s where the pressure comes on the finishing department.
The other reasons could be that half way through production, the factory realizes that they are running short of buttons. The fight starts among the finishing department, stores and purchase, leading to merchandising. After some investigations it is realized that the merchandiser calculated the number of buttons wrong.
In a different situation, at times it is found that goods are almost ready but the sample of blouse has not been sent to the buyer for approval. Until the factory gets the approval, shipment cannot move.
Quite often we face a situation where the cartons were not ordered because polybags were not ordered, thus upsetting the whole schedule of finishing department which may even affect the next orders in queue.
In a bizarre case, an exporter based out of Mumbai and having a factory in Bangalore dispatched the goods to Chennai to be shipped out. The shipping department in Mumbai HO lost track of the goods lying in Chennai. After 15 days, the whole company “woke up” because the buyer sent the alarm ringing.
There are umpteen such examples from our day-to-day work life. Managing information is not only crucial but critical. Gone are the days when a customer could be cajoled for extension of time-period leading to not only loss in profits but also the customers.
That brings us to another question – Do we have a control on costs/inputs during order execution? How strong is our MIS to do a post-mortem costing to know whether the order really contributed what it ought to have?
Today, we have large departments, dependent on employees. It’s time we lay down Standard Operating Procedures (SOPs) – to satisfy the need of an organization, educate the employees and monitor the process.
Laying SOP’s is easy but managing such large information is humanly impossible. It is here that we need a versatile and flexible ERP software solution to streamline operations, manage information and make the whole operation seamless. The ERP could start with costing, order receipt from buyer, Time and Action Calendar (TNA), Bill of Material (BOM), order processing, purchase, stores, production and shipping.
ERP and its Features
Typical ERP software consists of various modules that integrate activities across different departments – specific to the garment manufacturing industry. Some of the features include:
a) Costing module,
b) Merchandising module,
c) Purchase/Inventory module,
d) Production/Planning module,
e) Logistics/Shipping module, and
f) Where all are tied into a Finance module.
Different Attributes of ERP
It is observed that our industry is keen to “install” ERP systems, but its success rate in the industry is not very encouraging. Generally, it is said that the chances of successful implementation are 50:50 – as both the industry and the software companies are equally at fault.
We usually go by the initial presentation of the software company which impresses us and is flexible on costs. At times we find that the software company is “also” learning our trade while they are implementing the solution. They do not have a thorough understanding of working of our industry. We sometimes find that the software lacks certain points – while the software company make you believe that you are asking for too much, and it calls for “customization” of the software solution to fit the requirement of the company. Naturally customization comes with added cost.
Sometimes it happens that one particular software is better and contains more information on a particular functionality (depending on developer’s background or beta test company) while it lacks depth in some other functionalities.
At times there is a resistance to change from within the organization. The resistance is due to many reasons – job insecurity, additional workload all because until the software is inducted and installed, the employee continues with manual records and also with the likes of EXCEL programmes. Initially, the staff gets dejected – as it has to work on two systems simultaneously with no clear benefits in sight from ERP. It is a known fact that any A&F (apparel and footwear) software is difficult to develop, install and learn; this is because of the number of variables that we work with – style, colour and size.
Preparing for ERP Implementation
After the approval, which invariably comes from the top without taking the lower and middle management in confidence, there is a strong need to educate everybody in the organization about the benefits of an ERP. Each and everyone in the organization should be given a written down operational details with responsibilities clearly defined. Go slow. Do not try to induct all modules of the ERP at one go. It is good to start with inventory management module. Effort should be to make ledgers/written records obsolete.
The aim for the organization should be to receive the material and issue delivery note online. Once this particular module gets going successfully, it is time to shut down manual book keeping. It is only here that one can see and reap the benefit of ERP solutions, and steadily the people will start accepting other ERP modules.
Alongside inventory module, one can attach production module also. When production module is up and running, shipping module can be made functional. In fact make a time bound programme with software companies for each module to ensure that the whole organization supports the induction slowly but steadily.
Conclusion
To be competitive, we need to be productive; we should be able to sweat our machineries. And to be able to do that efficiently, we need to be up-to-date with information and take quick decisions. Once the top management decides for (need of) ERP, it is important to take everyone into confidence. All the Heads of Departments should be made to realize the need of ERP and be involved to get the ERP inducted across the organization. It is thus important to go with a vendor who has installations with satisfied customers. It is very important to check the vendor’s client list, call them to find out if all the modules are working “online”.
Once the vendor is finalized…,
Treat the vendor as a partner – part of the organization. Both the vendor and organization need to work closely to make it happen, to implement the software. On the hardware side, it is important that the organization understands the hardware and infrastructure requirement of the ERP. This aspect should be taken care of by the organization and the existing IT department. After a detailed discussion with the ERP vendor, the in-house IT department should draw plan for IT requirement and budget the cost of hardware.
It is equally important to nominate a senior person within the organization to take charge of induction of software. He need not be an IT expert, but with a vast domain expertise. This person should be well experienced with the working of all departments, the one who understands the link of each activity. He should be the go-between the ERP vendor team, the IT department and all other departments. With a time bound programme, and an effective induction, ERP can be implemented and made to work in the company’s benefit.
