GG Fashion realises Production Efficiency by 1-2% with GSDCost
The adoption of the internationally recognised GSD™ methodology has also simplified costing and planning processes, optimised production efficiencies, eliminated overtime and boosted employee morale.
About the customer :
GG Fashion (Cambodia) Co. Ltd., a subsidiary of leading global textile and apparel manufacturer, Ghim Li Global Pte Ltd., is a casual lifestyle fashion specialist, producing trousers, tops, skirts, dresses, bodysuits, jackets and hoodies.
The company supplies over one million garments a year and boasts a workforce of over 2,200 employees across Cambodia. The company manages over 50 sewing lines and over 1,200 machine operators, and its customers include: Macy’s, Footlocker, Walmart and Aeropostale.
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Produces 1+ million garments annually -
2,200+ employees -
Cambodia -
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The Challenge – Manual processes led to uncertainty surrounding capacity and garment cost processes
Prior to implementing Coats Digital’s GSDCost solution, GG Fashion faced several critical challenges. High production costs, inconsistent sewing outputs, quality defects and inefficient pre-production planning were among the most significant issues. These challenges resulted in late deliveries, additional costs and compromised product quality.
Due to the lack of a robust, scientifically based method-time-cost standard to create accurate cost and capacity forecasts, GG Fashion was often faced with uncertainty surrounding its capacity and garment cost processes, which also hampered its overall levels of quality control.
As our cost and capacity forecasts were previously based on inaccurate historical data from past production experiences, we suffered unreliable efficiency targets, high defect rates, late deliveries, unnecessary freight costs and unplanned overtime costs. Without an open and transparent capacity platform providing the visibility we needed to create factually stable manufacturing costs or properly assessed production workloads, we additionally had to pay emergency costs to fulfil orders on time, which negatively impacted our profit margins.
Wong Chen Hau (Jackson),
The integration of GSDCost with existing systems has fostered better collaboration across teams which has ensured timely communication throughout our business operation. We are now all benefiting from more precise planning minutes which have significantly improved pre-production planning accuracy and reduced the likelihood of short shipments or late deliveries.
Continuous Improvement Manager,
GG Fashions
The Solution
Following the implementation of GSDCost, GG Fashion was able to establish international standard time and cost saving benchmarks based on standard motion codes and predetermined times.
This enabled the sales, costing, planning and production teams to communicate efficiently using the same language, based on a scientific method for correctly analysing manufacturing costs. By standardising SMV production line motion handling and improving operator efficiency, GG Fashion has achieved a 1 to 2 percent overall improvement in factory efficiencies (dependent on product type, season and quantities) within four months- which has led to reduced production costs and increased productivity.
The standardisation of processes has also resulted in better quality control and higher On-Time Delivery Performance (OTDP) which has ensured greater customer satisfaction and reduced penalty charges for late shipments or high defect rates from buyers.
Before implementing GSDCost, we struggled with uneven skill levels among our sewing machine operators which led to higher costs and lower productivity. We also faced difficulty in maintaining consistent quality control, since we would sometimes need to substitute certain production runs with inferior fabric or threads to ensure we could make a profit and/or deliver on time. This resulted in a high level of defects and a loss in customer satisfaction.
Darshana Sanjeewa,
Coats Digital’s GSDCost solution has been a game-changer for us. We’ve seen a noticeable increase in productivity and efficiency and our delivery schedules we are now much more reliable. Not only has this helped to optimise our profit margins, but also improved our reputation with key customers. As a result of being able to introduce accurate, fact-based performance targets along with greatly improved production processes – minimising the need for last-minute overtime requests – we have also boosted staff morale across the organisation quite considerably.
Industrial Engineering supervisor,
GG Fashions
“We are delighted that GG Fashion has realised such great results since the successful integration of GSDCost into its operations earlier this year. An initial one to two percent increase in production efficiency is testament to the power of scientifically-based methodologies in transforming manufacturing processes – and this is only set to improve as GG Fashions starts to capitalise on the full capabilities of the solution in the months ahead. GG Fashion’s dedication to embracing this technology has not only streamlined its operations but also significantly boosted employee morale and customer satisfaction. We are proud to be part of its journey towards operational excellence and look forward to supporting GG Fashion’s continuous improvement and sustained success in the future.” stated Boris Lu, Customer Success Manager, Coats Digital
