This article is written by Prafull Sundriyal
An efficient manufacturing planning and control system in the apparel industry is crucial for streamlining production processes and meeting customer demands. This system operates across five major levels, and each plays a vital role in ensuring smooth production activities. Let's explore these levels with examples specific to the apparel sector for both domestic and international markets.
1. Strategic Business Plan
The strategic business plan is a high-level framework developed collaboratively by various departments such as marketing, finance, production, and engineering. It outlines the company’s long-term objectives and aligns operations with these goals. A methodology like Hoshin Planning ensures that all efforts are directed toward achieving strategic priorities.
Example:
- Domestic Market: An Indian apparel brand focusing on ethnic wear develops a strategic plan to expand its reach to Tier 2 and Tier 3 cities over five years by leveraging e-commerce platforms.
- International Market: A global sportswear brand like Nike plans to increase its presence in Asia by launching region-specific designs that cater to local preferences and climates.
2. Production Plan (Sales and Operations Planning)
The production plan translates the strategic business plan into actionable goals. It determines the quantity of product groups to be produced in each period, required inventory levels, and resource availability. This process often involves aggregate planning for families of products.
Example:
- Domestic Market: A fast-fashion brand in India plans its production for seasonal collections (e.g., spring-summer and autumn-winter) based on forecasted demand, ensuring timely availability of stock at retail outlets.
- International Market: A luxury brand like Burberry prepares its production plan to match the demand from different regions while considering shipping timelines to its global stores.
3. Master Production Schedule (MPS)
The master production schedule provides a detailed plan at the item level, specifying what products need to be produced, in what quantities, and when they should be ready.
Example:
- Domestic Market: An Indian denim manufacturer like Spykar schedules the production of various sizes and styles of jeans to meet high demand during festive sales.
- International Market: A European retailer like Zara updates its MPS weekly to reflect real-time market trends and ensure rapid delivery of new designs to stores worldwide.
4. Material Requirement Planning (MRP)
MRP determines the materials needed and their required quantities based on the master production schedule, ensuring that production runs smoothly without delays caused by material shortages.
Example:
- Domestic Market: An apparel manufacturer in Tirupur calculates the fabric, thread, buttons, and zippers required to fulfill large orders for export to Europe.
- International Market: A U.S.-based brand like Levi’s uses MRP to coordinate the sourcing of sustainable materials for its eco-friendly denim collection.
5. Purchasing and Production Activity Control
This level involves implementing the plans by procuring raw materials, scheduling production activities, and ensuring the timely completion of tasks. Capacity management is critical to avoid underutilization or overloading of resources.
Example:
- Domestic Market: A kurti manufacturer ensures that dyeing, cutting, and stitching processes are aligned with delivery schedules for domestic retailers.
- International Market: A contract manufacturer in Bangladesh manages large-scale production for global brands like H&M, ensuring timely delivery and adherence to quality standards.
Sales and Operations Planning (S&OP)
Sales and operations planning is a cross-functional process involving sales, marketing, product development, operations, and senior management. It helps balance demand and supply effectively.
Process:
- Data Gathering
- Demand Planning
- Supply Planning
- Pre-S&OP Meeting
- Executive Meeting
Example: A domestic apparel brand aligns its marketing campaigns with production capacity to prevent overstocking or stockouts during festive seasons. Internationally, brands like Adidas conduct global S&OP meetings to adjust plans based on regional market demands.
Manufacturing Resource Planning (MRP-II) and ERP
MRP-II integrates finance, marketing, and production into a cohesive planning system. ERP (Enterprise Resource Planning) extends beyond manufacturing to include all business functions, providing an enterprise-wide view.
Example:
- Domestic Market: A mid-sized Indian apparel firm adopts ERP software to integrate procurement, inventory management, and sales processes.
- International Market: A global brand like Uniqlo leverages ERP to synchronize operations worldwide across its factories, warehouses, and retail outlets.
Strategies for Production Planning
- Chase Strategy: Production aligns with demand, minimizing inventory. Example: A custom clothing manufacturer produces garments only after receiving orders.
- Production Leveling: Produces at a consistent rate, balancing demand fluctuations. Example: An FMCG apparel brand like Jockey maintains steady production to meet consistent demand.
- Subcontracting: Outsourcing production to meet peak demands. Example: A domestic apparel brand outsourcing winter wear production to meet seasonal demand spikes.
- Hybrid Strategy: Combines multiple strategies for optimal efficiency. Example: A global brand like GAP uses a mix of in-house production and subcontracting to balance costs and demand.
Made-to-Stock vs. Made-to-Order Production Plans
Made-to-Stock: Total Production = (Total Forecast + Back Orders + Ending Inventory – Opening Inventory).
Example: A retailer stocking ready-to-wear garments for peak seasons.
Made-to-Order: Total Production = (Total Forecast + Opening Backlog – Ending Backlog)
Example: A bespoke tailoring service producing garments based on individual customer orders.
Resource Planning
Resource planning integrates factory capacity and financial constraints to meet business goals. Product groups are established to simplify planning processes.
Example:
- Domestic Market: A saree manufacturer classifies products by fabric type (e.g., silk, cotton) for production planning.
- International Market: A global brand categorizes products by region to tailor planning to specific market demands.
Conclusion
In conclusion, effective production planning systems are critical for the apparel sector’s success, enabling brands to meet customer demands, optimize resources, and maintain a competitive edge in both domestic and international markets.
References
Book
- Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2004). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill Education.
- Stevenson, W. J. (2021). Operations Management. McGraw-Hill Education.
Journals and Articles
- Nahmias, S., & Olsen, T. L. (2015). Production and Operations Analysis. Wiley.
- Hopp, W. J., & Spearman, M. L. (2011). Factory Physics: Foundations of Manufacturing Management. Waveland Press.
Industry Reports
- McKinsey & Company. (2023). The State of Fashion Report.
- Statista. (2023). Global Apparel Market Overview.
Web Resources
- Apparel Resources: https://www.apparelresources.com/
- Textile Exchange: https://textileexchange.org/
- Infor Syteline (APS system): https://www.infor.com/products/syteline
Case Studies
- Zara’s Supply Chain: Harvard Business Review Case Study.
- Nike’s Demand Planning: Journal of Operations Management.
Note- All the images are generated by Google Gemini and Microsoft Copilot.
About the Author:
Prafull Sundriyal is a seasoned professional in Supply chain management with a solid academic background, holding an MFTech degree from NIFT Bengaluru and a BTech in Mechanical Engineering. With over five years of extensive experience in the Apparel and Fashion Industry, he has effectively collaborated with both domestic and international clients to deliver optimized solutions and enhance operational efficiency. Currently serving as an M3 Consultant at Infor, Prafull specializes in streamlining workflows, executing timely project implementations, and reducing operational costs. His expertise encompasses Project management, Product development, Operations, Strategy, and Customer success, making him a trusted advisor for seamless system transitions and impactful business outcomes.