Dr. Gordon Yen

1. Dr. Gordon Yen Enhancing Supply Chain Visibility in Fountain Set with SCOR Model

2. Basic Information of FSHL • Knitted fabric mill founded in 1969 • One of the world’s largest with over • 50k tons of monthly capacity • Highly vertical-integrated operations - Spinning, Knitting, Dyeing, Printing, Finishing & Garment Production • Ship fabric to over 40 countries for supply chain of internationally renowned brands

3. Multiple Challenges • Fragmented supply chain • Highly customized product quality and design requirements • Large work-in-progress inventory • Short lead-time High penalty on delay

4. Solution (SCOR) Collaborative project between GS1 and FSHL - To examine the entire ‘MAKE’ process

5. Objectives • To find out how time is spent on value-added and non-value addedprocesses • To provide insights for improvement * Increasing visibility in the ‘MAKE’ production process * Reducing production time and cost

6. ‘MAKE’ process in FSHL Knitting Dyeing Finishing mills Quality Control Packaging and staging Delivery

7. Value-stream analysis Measure process performance with average length of time spent on each process Value Added Process Knitting Dyeing Finishing QC & Packaging Delivery The MAKE Process Non-value Added Process Grey Fabric Staging Dyed Fabric Staging Finished Fabric Staging Packaged Fabric Staging

8. Recommendations For Cycle Time Improvement Value Added Process •  Process Time Without Affecting Product Quality • Use additional facilities/resources to improve productivity The MAKE Process Non-value Added Process • Staging Time • Eliminate unnecessary staging/delay or minimize staging through root cause analysis

9. Potential Root Cause External Process • Awaiting customers’ provision of color assortment information • Awaiting customers’ approval of fabric swatch (on color, architecture, etc.) Fabric Staging • Awaiting instructions from production planning • Awaiting availability of materials • Awaiting availability of machinery Internal Process

10. Further break down steps through Work • Breakdown Structure (WBS) • Study each step and define a standard time • Capacitycan be obtained • Prepare optimized production planthrough staff • experience or production scheduling software • Compare the production plan with the actual output • - Performancecan be measured

11. Define Standard Time For All Steps Under the WBS Identify Manufacturing Capacity From the Standard Time Optimization of Production Plan Achieve Defined Performance

12. Set up Internal Benchmark & Model Operation

13. Standard knitting timeby fabric architecture, material, and knitting machine type • Standard dyeing timeby material type, color or by volume

14. Under the SCOR model, performance are measured by • Fill rate • Cycle time • In FS’s operation, • Fill rate can be defined as • % of batch orders completed within standard time • Cycle time can be defined as • Average cycle time of a batch order

15. Set a target performance level for each, e.g. • % of batch orders completed within standard days • As-Is: 80%, To-Be: 90% • Average cycle Time • As-Is: 30 days, To-Be: 25 days

16. Improve Accuracy of Cycle Time Measurement

17. Moving from manual record to barcode scanning system • Also testing RFID for rapid and accurate measurement

19. Overall benefits of the project

20. Performance quantificationenhances supply chain visibility • Eliminate wastes • stemming from over-production, transportation, over-processing, waiting time, inventory, motion, and scrap • Operational efficiencyis enhanced in the overall supply chain • Improve customer satisfaction

21. Thank You