Phong Phu International uses FastReactPlan to manage their complex processes and achieve significant cost savings and improved customer service
A. THE CUSTOMER
Phong Phu International (PPJ), with headquarters in Ho Chi Minh City and facilties spread across South, North and Central Vietnam, is one of the world’s leading producers of apparel with a focus on denim.
The company’s vertical operations includes denim and knit fabric production, garment production of jeans, woven and knit casual wear and advanced laundry and finishing for denim apparel. The group has 15 sewing units, 9 laundry and 14 finishing facilities employing almost 13,000 people. They produce up to 400 styles per month, and around 21 million pieces a year for a wide range of USA and EU buyers, such as AEO, Target, Express, ANF, and Talbots.
B. THE CHALLENGE
Mr. Dang Vu Hung, PPJ’s Chairman, explains the goals for the FastReactPlan project:
Our business has increased in size and complexity every year. It became clear as a management team we were struggling to keep track of our plan and progress.
Each department and each production process made their own plan but these were not connected, so we had no visibility of the total process, and when changes were made or problems faced in one area it was taking too long to see how that affected the other processes. As a result our On Time Delivery Performance (OTDP) was suffering, freight costs were increasing and we were very stretched.
Mr Dang Vu Hung, Chairman, PPJ
C. KEY FACTS
Phong Phu International (PPJ)
No visibility of the whole planing process. Resulting in On Time Delivery Performance (OTDP) suffering and air freight costs increasing.
Significant cost and time savings and improved customer service. On Time Delivery Performance has increased from 90% up to 96%.
D. THE CHALLENGE
We needed to find one group wide system that would help us plan better, give us total and up-to-date visibility and management reporting across the whole process, from order receipt to delivery. For most types of garments once sewing is complete the job is almost done, but for denim production it’s just the halfway point!
After sewing comes the complex distressing processes which typically involves up to 22 processes per style, including hand sanding, grinding, ozone, pigment, resin and laser treatments along with numerous washing and drying cycles. Following laundry, the garments then go into the final finishing steps including labelling, embellishment such as rhinestones and patching.
We chose Fast React’s Evolve [now FastReactPlan] because there was no other business that had such a clear understanding of the problems and solutions to solve them. Not just of the typical garment production headaches, but also the unique challenges PPJ faced in the denim laundry area.
Mr Dang Vu Hung
E. THE SOLUTION
Simon Gibson, MD Asia, Coats Digital, explains,
PPJ use all of our standard apparel manufacturing tools including sewing line planning boards, pre-production T&A module to manage sampling, materials and trims, report designer and our high level sales and management control tower view for totals visibility across all processes and locations.
The interesting part of the project for our team was the laundry area. The challenges in managing capacity in laundries are quite unique and different to the planning of typically sewing lines.
For example, there are up to 100 possible processes and a typical style can use a mix of around 10 to 22 of these processes. As such the bottleneck operations move around with the order mix, some days the capacity problem can be in lasering, the next week it’s in PP spray. In addition, some processes work are single garments, whereas as others are processed in batches e.g. washing.
To plan well, not only does each process have to link to each other, but they also have to link to the sewing plan which is feeding it. In normal garment production sewing it is the main capacity constraint, but in denim, for example, we may have a big demand on lasers in a certain month, so that becomes the key constraint.
As a result, the sewing planning team need to be aware of the constraint, and plan a smooth flow of styles that need laser throughout the month – they can’t just send them all in one week.
MD Asia, Coats Digital
F. THE RESULTS
ON-TIME DELIVERY PERFORMANCE
Ms. Dang Thi My Bich, Planning Manager – PPJ washing, said,
PPJ produce a wide range of product types for 15 different brands, so it’s critical we can standardise and specialise by factory as much as possible to ensure quality and cost efficiency. With Evolve [now FastReactPlan], we can immediately see when and which of our factories and processes are full or over loaded so we can plan to move orders to other factories, or discuss delivery priorities with our customers.
FastReactPlan has helped us actively manage the plan and make decisions much sooner and as a result, we have been able to bring our On Time Delivery Performance from 90% up to 96%.
Ms Dang Thi My Bich