GSDCost gives Epyllion transparency of their true cost of production

The challenge

Prior to the installation of GSDCost in 2014, time, cost and capacity calculations at Epyllion were based upon historical time study data created in their own production units. Epyllion acknowledged this data was subjective and outdated. Therefore it was unreliable, with no indication of the real cost of their manufacturing.

As a result, the company lacked visibility and confidence in the true cost of production. Consequently, they were also unable to establish meaningful and realistic production targets for their sewing workers. This lack of transparency had a negative impact on the business. For example, it caused lost revenue by inadvertent under-costing of orders, and an adverse impact on lead times.

Additionally, it was difficult to achieve agreed delivery targets without the extra time and unplanned and costly overtime. Once accurate and reliable SMVs were in place, Epyllion could accurately identify the true cost of production of their operation. As a result, the company could make more informed key business decisions using reliable fact-based data. An additional focus was to optimize and standardize their manufacturing processes to further improve their product quality and production efficiency.

The objective

The key objective was to establish the common language of GSDCost as the dependable unit of measure for time and cost within their business. Additionally, they aimed to establish the true cost of their production. Subsequently, GSDCost was the catalyst for driving improved cost and production efficiency.

The solution

During the important training and implementation stage, the operational team acquired a thorough understanding of GSDCost. For instance, the training included extensive practical sessions on the shop floor. They were able to create accurate cost benchmarks of their current production. For this reason, this gave the company a crucial awareness of potential excess motions in the methods. As a result, non-value-added activities were eliminated.

Epyllion now has the tools to set meaningful production targets based on fact-based capacity data. Additionally, the lost business opportunities previously caused by over-costing or under-costing of orders, were eliminated. They are also able to understand the true cost of production per style. Consequently, the company was able to make more informed commercial decisions.

Why GSDCost?

Shajedur Rahman (Mithu) commented, “We chose GSD as a partner, as they are recognised as the global standard for time and cost in the apparel industry. We were confident that their experience and the proven solution would provide a strong foundation for our company to optimise costs and improve our productivity.”