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Manchu Times Manchu Times FashionFashion

Performance Performance Enhancement Enhancement

ProposalProposal( New York / Hong Kong / ( New York / Hong Kong /

Dalian )Dalian )Raymond ChongRaymond Chong

October 30 2010October 30 2010

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Hardware ImprovementHardware Improvement Company WebsiteCompany Website Organization ChartOrganization Chart Show RoomShow Room LibraryLibrary Standard Operation Procedure Standard Operation Procedure

( SOP )( SOP ) Core SystemCore System Tracking Chart ( Style from NYO )Tracking Chart ( Style from NYO ) Sample Room CapacitySample Room Capacity Current Factory / Production BaseCurrent Factory / Production Base Production PlanningProduction Planning

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Software Improvement Software Improvement ( Ext. / Int. )( Ext. / Int. )

SOP DepartmentSOP Department Factory Sourcing / Evaluation DepartmentFactory Sourcing / Evaluation Department Quality Assurance DepartmentQuality Assurance Department Human Resource DepartmentHuman Resource Department Administration DepartmentAdministration Department Operation / Compliance DepartmentOperation / Compliance Department Innovation / RND DepartmentInnovation / RND Department Purchasing DepartmentPurchasing Department HK MerchandisingHK Merchandising Dalian Merchandising ( APC )Dalian Merchandising ( APC ) Laboratory / Color / Wet Processing Laboratory / Color / Wet Processing

DepartmentDepartment Design & Technical DepartmentDesign & Technical Department Pattern DepartmentPattern Department Internal Sample RoomInternal Sample Room

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Company WebsiteCompany Website Company IntroductionCompany Introduction

The Company The Company The OfficesThe Offices The Product and CustomersThe Product and Customers The FactoriesThe Factories The VisionThe Vision Increase B2B business Increase B2B business PS : Link with customers and supplier PS : Link with customers and supplier

directlydirectlyE.g. ( William E. Connor ) E.g. ( William E. Connor ) www.weconnor.comwww.weconnor.com ( Li&Fung ) ( Li&Fung ) www.lifung.comwww.lifung.com ( Mast ) ( Mast ) www.mast.comwww.mast.com ( CFL ) ( CFL ) www.cflhk.comwww.cflhk.com ( EPIC ) ( EPIC ) www.epichk.comwww.epichk.com

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Organization ChartOrganization Chart Structure of Organization – Update Structure of Organization – Update

FrequentlyFrequently New York OfficeNew York Office

•Staffs for which brand / customerStaffs for which brand / customer•ResponsibilityResponsibility

Hong Kong OfficeHong Kong Office•Staffs for which brand / customerStaffs for which brand / customer•ResponsibilityResponsibility

Dalian OfficeDalian Office•Staffs for which brand / customerStaffs for which brand / customer•ResponsibilityResponsibility

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Show RoomShow Room Display the samples and products of Display the samples and products of

Manchu Capability and Strength. Manchu Capability and Strength. Customer also can develop Customer also can develop

something new from the sample something new from the sample library to get more businesslibrary to get more business

Current Situation :--Current Situation :-- NYO – Show Room setup is NYO – Show Room setup is

traditional and no fashion attitudetraditional and no fashion attitude HKO – Show Room is too small and HKO – Show Room is too small and

no current sample can be displayedno current sample can be displayed Dalian Office – Too old fashionDalian Office – Too old fashion

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LibraryLibrary Library – NYO / HKO / Dalian officeLibrary – NYO / HKO / Dalian office

Fabric Library – Fabric Library – •Running Current FabricRunning Current Fabric•Potential FabricPotential Fabric

Washing Panel Library –Washing Panel Library –•Wet ProcessingWet Processing•Dry ProcessingDry Processing•Denim WashesDenim Washes

Trims / Accessory Library –Trims / Accessory Library –•Embellishment / Beading / Rhine Embellishment / Beading / Rhine StoneStone

•Interlining / Shoulder Pad / ButtonInterlining / Shoulder Pad / Button

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Standard Operation Standard Operation Procedure (SOP)Procedure (SOP)

Internal – Established from top Internal – Established from top managementmanagement Rule and Regulation – Current Rule and Regulation – Current

ColleaguesColleagues Guideline – New ColleaguesGuideline – New Colleagues Procedure ( Manchu ) – Procedure ( Manchu ) –

•Operation / Compliance department Operation / Compliance department should conduct training / seminarshould conduct training / seminar

•Team leader should publish the Team leader should publish the document and coach the team to followdocument and coach the team to follow

External – Announced from CustomersExternal – Announced from Customers Best Practice ( factory ) – MonitorBest Practice ( factory ) – MonitorPS : Suggest to setup a SOP teamPS : Suggest to setup a SOP team

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Core System (1)Core System (1) Record Tracking / Data AnalysisRecord Tracking / Data Analysis

Sampling –Sampling –•Sample Requested Date ( from Sample Requested Date ( from customer )customer )

•SID creation dateSID creation date•Fabric / Trims ( Last received date )Fabric / Trims ( Last received date )•Pattern Finished DatePattern Finished Date•Sample Package Ready DateSample Package Ready Date•Sample Finished DateSample Finished Date•Sample Delivery DateSample Delivery Date•Parcel Tracking NumberParcel Tracking Number

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Core System (2)Core System (2) Record Tracking / Data AnalysisRecord Tracking / Data Analysis

Production :--Production :--•GAC / Hand-off / Ex-Factory DateGAC / Hand-off / Ex-Factory Date•Fit / PPS / TOP Sample Wall DateFit / PPS / TOP Sample Wall Date•Fit / PPS / TOP Sample Approval DateFit / PPS / TOP Sample Approval Date•Fabric Inspection DateFabric Inspection Date•Plan Cut Date / Actual Cut DatePlan Cut Date / Actual Cut Date•Plan Sew Date / Actual Sew DatePlan Sew Date / Actual Sew Date•In-line / Pre-Final / Final Inspection In-line / Pre-Final / Final Inspection DateDate

•Ship Date / Forwarder InformationShip Date / Forwarder Information

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Tracking Chart ( Style from Tracking Chart ( Style from NYO )NYO )

Developing from NY designerDeveloping from NY designer Project number of style for each season Project number of style for each season

and each customer before season and each customer before season startingstarting

Update timeline of tech pack flowing outUpdate timeline of tech pack flowing out Update sourcing place and timeline of Update sourcing place and timeline of

fabric and trims status ( from NYO, fabric and trims status ( from NYO, Innovation / RND, or Local Source in Innovation / RND, or Local Source in Dalian )Dalian )

Target Sample Due Date ( ETA )Target Sample Due Date ( ETA ) Tracking Chart should be updated on Tracking Chart should be updated on

multiple sides ( NYO, HKO and Dalian multiple sides ( NYO, HKO and Dalian office ) weeklyoffice ) weekly

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Sample Room Capacity (1)Sample Room Capacity (1) Monthly Sample Capacity ( 2010 )Monthly Sample Capacity ( 2010 )

Maximum Output = Sample Room A+B ( Maximum Output = Sample Room A+B ( 780 pcs ), Sample Room C ( 300 pcs ), 780 pcs ), Sample Room C ( 300 pcs ), Outsourced 14 Sample Rooms ( 1508 pcs Outsourced 14 Sample Rooms ( 1508 pcs ) = 2588 pcs) = 2588 pcs

11 Current Customers = 235 11 Current Customers = 235 pcs/cust/mnthpcs/cust/mnth

Average Monthly Actual Output 1085 pcs Average Monthly Actual Output 1085 pcs ( based on Jan to Sep analysis ) ( based on Jan to Sep analysis )

Average 150 orders around 800 samples Average 150 orders around 800 samples ( current pending in Core ( current pending in Core System )System )

Outside Sample Rooms can only make Outside Sample Rooms can only make the Quantity Sample ( Color-run, the Quantity Sample ( Color-run, Salesman, Coordination Sample )Salesman, Coordination Sample )

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Sample Room Capacity (2)Sample Room Capacity (2) Predict Monthly Sample Capacity Predict Monthly Sample Capacity

( 2011 )( 2011 ) WHBM requested to have 25% sample WHBM requested to have 25% sample

order increasedorder increased Express requested Sample Turn Around Express requested Sample Turn Around

time with 10 days time with 10 days Guess will place more Suit and try Jean Guess will place more Suit and try Jean

itemitem Guess – International style will have 64 Guess – International style will have 64

pcs/style for Salesman Samplepcs/style for Salesman Sample New Balance requests Salesman Sample New Balance requests Salesman Sample (1085+800) + 25% = 2356 pcs(1085+800) + 25% = 2356 pcs

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Current Factory/Production Current Factory/Production Base (1)Base (1)

Current Problems with 6 Main FactoryCurrent Problems with 6 Main Factory Orders allocated to all 6 factoriesOrders allocated to all 6 factories Production Capacity is limitedProduction Capacity is limited Factory locate the orders in sub-Factory locate the orders in sub-

contractorscontractors Sub-contractor have not been reviewed Sub-contractor have not been reviewed

and approved by MTF before productionand approved by MTF before production Order go to other vendor due to Product Order go to other vendor due to Product

and Construction can be done is limitedand Construction can be done is limited Poor Quality final goods caused Charge Poor Quality final goods caused Charge

Back or RTV ( return to vendor )Back or RTV ( return to vendor ) CM cost is rising up every year crazilyCM cost is rising up every year crazily

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Current Factory/Production Current Factory/Production Base (2)Base (2)

SuggestionSuggestion Create a Factory Sourcing / Evaluation team Create a Factory Sourcing / Evaluation team

to aim for wider factory base and productto aim for wider factory base and product Look for “ Factory “ which can be approvable Look for “ Factory “ which can be approvable

by different customer to increase the order by different customer to increase the order quantityquantity

Look for “ Factory “ which is capable to do Look for “ Factory “ which is capable to do different product ( E.g. Jean, Shirt, Blouse and different product ( E.g. Jean, Shirt, Blouse and Soft Dress )Soft Dress )

Look for “ Factory “ in continental of China Look for “ Factory “ in continental of China which can lower down the CM costwhich can lower down the CM cost

Work with Factory Evaluation team ( or 3Work with Factory Evaluation team ( or 3rdrd party ) from customer sideparty ) from customer side

Record Keeper for Factory Evaluation and Record Keeper for Factory Evaluation and ApprovalApproval

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Production PlanningProduction Planning Production Planning is NOT equal to Order Production Planning is NOT equal to Order

AllocationAllocation When the Factory and Production Base is When the Factory and Production Base is

increased which can be aligned with the increased which can be aligned with the order quantity and category needorder quantity and category need

Production Planning really can be Production Planning really can be established by monthly basisestablished by monthly basis

Production Planning has to be done based Production Planning has to be done based on the factory monthly capacity and on the factory monthly capacity and capabilitycapability

In-charge Production Planning, who should In-charge Production Planning, who should well known the factory communicate well well known the factory communicate well with factory and merchandising departmentwith factory and merchandising department

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SOP Department ( DLN – SOP Department ( DLN – Ext. )Ext. )

Define the ResponsibilityDefine the Responsibility Implement MQM / TQM to all factoriesImplement MQM / TQM to all factories Coach and Train factory the Coach and Train factory the

requirements of the need of MQM / requirements of the need of MQM / TQM ( seminar if need )TQM ( seminar if need )

Control and Monitor if factory did not Control and Monitor if factory did not followfollow

Discuss with factory management for Discuss with factory management for improvementimprovement

Raise up to MTF senior management if Raise up to MTF senior management if factory management is not listeningfactory management is not listening

Recommend to merchandising team to Recommend to merchandising team to stop order if factory did not follow stop order if factory did not follow

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Factory Sourcing/Evaluation Factory Sourcing/Evaluation DeptDept

Define the ResponsibilityDefine the Responsibility Coordinate with merchandising team for what Coordinate with merchandising team for what

product as customer looking forproduct as customer looking for Coordinate with technical team what capability Coordinate with technical team what capability

and facility as factory should have for different and facility as factory should have for different productproduct

Look for “ Factory “ which can be approvable by Look for “ Factory “ which can be approvable by different customer to increase the order quantitydifferent customer to increase the order quantity

Look for “ Factory “ which is capable to do Look for “ Factory “ which is capable to do different product ( E.g. Jean, Shirt, Blouse and different product ( E.g. Jean, Shirt, Blouse and Soft Dress )Soft Dress )

Look for “ Factory “ in continental of China Look for “ Factory “ in continental of China which can lower down the CM costwhich can lower down the CM cost

Work with Factory Evaluation from customer Work with Factory Evaluation from customer sideside

Record Keeper for Factory Evaluation and Record Keeper for Factory Evaluation and ApprovalApproval

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Quality Assurance Quality Assurance DepartmentDepartment Need a Proactive and Aggressive leader in teamNeed a Proactive and Aggressive leader in team

Coordinate with merchandising and technical Coordinate with merchandising and technical departmentdepartment

Follow up MQM / TQM procedure as Follow up MQM / TQM procedure as establishedestablished

Quality should be controlled at the front end, Quality should be controlled at the front end, pay attention at in-line and interimpay attention at in-line and interim

Take proper corrective action for mistake and Take proper corrective action for mistake and error in production error in production

Raise up issue to senior management and stop Raise up issue to senior management and stop production if necessaryproduction if necessary

Work with QA team ( or 3Work with QA team ( or 3rdrd party ) from party ) from customer sidecustomer side

Case Study with QA staffs and factory for any Case Study with QA staffs and factory for any Charge Back and RTV ( return to vendor ) to Charge Back and RTV ( return to vendor ) to learn from lesson ( seminar if need )learn from lesson ( seminar if need )

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Human Resources Human Resources DepartmentDepartment

The one oversee Human Resource of the The one oversee Human Resource of the whole organization should be well whole organization should be well understood the company vision and understood the company vision and direction to align the company strategy .direction to align the company strategy . Recruitment –Recruitment – Organization –Organization – Restructuring –Restructuring – Offices & Staff Alignment –Offices & Staff Alignment – In-house Training – English, Mandarin etc.In-house Training – English, Mandarin etc. External Training – Excel, Management External Training – Excel, Management

SkillSkillPS : Fu should not get involved this taskingPS : Fu should not get involved this tasking

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Administration Dept ( DLN )Administration Dept ( DLN ) Fu should oversee whole picture of Fu should oversee whole picture of

belowbelow Fu needs assistant to help himFu needs assistant to help him

Sample SchedulingSample Scheduling Sample ArrangementSample Arrangement Sample Tracking Data ( from Core )Sample Tracking Data ( from Core ) External Sample Room OutsourcingExternal Sample Room Outsourcing Clerical PurchasingClerical Purchasing Company Car ArrangementCompany Car Arrangement Petty CashPetty Cash

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Operation / Compliance Operation / Compliance Dept Dept

( DLN – Internal )( DLN – Internal ) Hardware :-- Hardware :--

Manchu Established Internal SOPManchu Established Internal SOP Software :-- Software :--

Conduct Training and Seminar Conduct Training and Seminar regularlyregularly

Implement Established SOPImplement Established SOP Monitor if the internal colleagues has Monitor if the internal colleagues has

complied established SOPcomplied established SOP Control and Record if someone did not Control and Record if someone did not

follow which will be affected to the follow which will be affected to the annual resultannual result

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Innovation / RND Innovation / RND DepartmentDepartment

Define the ResponsibilityDefine the Responsibility Update Core System by daily basisUpdate Core System by daily basis Coordinate with merchandising and Coordinate with merchandising and

purchasing departmentpurchasing department Source the fabric and trims aggressively to Source the fabric and trims aggressively to

hit customer target price and time mannerhit customer target price and time manner Negotiate Costing and Delivery with fabric Negotiate Costing and Delivery with fabric

mills and trims suppliersmills and trims suppliers Discuss with customer in advance for Discuss with customer in advance for

potential issue during product developmentpotential issue during product development Make sure all suppliers to adhere the Make sure all suppliers to adhere the

Testing Requirements and aware all Test Testing Requirements and aware all Test ProtocolsProtocols

Make sure to get Test Reports for fabric Make sure to get Test Reports for fabric and trims before deliveryand trims before delivery

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Purchasing DepartmentPurchasing Department Define the ResponsibilityDefine the Responsibility

Coordinate with merchandising team in Coordinate with merchandising team in both HK and Dalianboth HK and Dalian

Reflect to merchandising team in both Reflect to merchandising team in both HK and Dalian if any delayed of fabric or HK and Dalian if any delayed of fabric or trimstrims

Make sure the prices of bulk as Make sure the prices of bulk as negotiated by Innovation / RND negotiated by Innovation / RND department to be remaineddepartment to be remained

Obtain Test Report for bulk fabric and Obtain Test Report for bulk fabric and bulk trims from mills and supplier before bulk trims from mills and supplier before shippingshipping

Fabric and Trims Tracking and MonitorFabric and Trims Tracking and Monitor Keep Partnership with fabric mills and Keep Partnership with fabric mills and

trims supplierstrims suppliers

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HK MerchandisingHK Merchandising Define the ResponsibilityDefine the Responsibility

Update Core System by daily basisUpdate Core System by daily basis Approach Customer AggressivelyApproach Customer Aggressively Provide Costing Competitively ( options Provide Costing Competitively ( options

)) Provide Product Development ServiceProvide Product Development Service Coordination with all departmentsCoordination with all departments Fabric and Trims Tracking and MonitorFabric and Trims Tracking and Monitor Sample Tracking and MonitorSample Tracking and Monitor Update Costing Reaction ( from Update Costing Reaction ( from

development to production )development to production )

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Dalian Merchandising ( APC Dalian Merchandising ( APC ))

Define the ResponsibilityDefine the Responsibility Update Core System by daily basisUpdate Core System by daily basis Approach Customer if necessaryApproach Customer if necessary Provide sufficient information to HK Provide sufficient information to HK

teamteam Coordination with all departmentsCoordination with all departments Follow up production status ( Sample Follow up production status ( Sample

Approval, Testing etc. )Approval, Testing etc. ) Fabric and Trims Tracking and Fabric and Trims Tracking and

MonitorMonitor Sample Tracking and MonitorSample Tracking and Monitor Update HK team for Costing Reaction ( Update HK team for Costing Reaction (

from development to production )from development to production )

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Lab/Color/Wet Processing Lab/Color/Wet Processing Dept (1)Dept (1)

Define the ResponsibilityDefine the Responsibility Coordinate with merchandising, Coordinate with merchandising,

technical and inspection centertechnical and inspection center The only department can conduct The only department can conduct

testing ( Fabric Shrinkage, testing ( Fabric Shrinkage, Button Pull Strength, Tensile Button Pull Strength, Tensile Strength, Seam Slippage, Seam Strength, Seam Slippage, Seam Strength etc. )Strength etc. )

The only department can comment The only department can comment and make decision for Colorand make decision for Color

No One can override the decision No One can override the decision from this department, unless decision from this department, unless decision from senior management of MTFfrom senior management of MTF

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Lab/Color/Wet Processing Lab/Color/Wet Processing Dept (2)Dept (2)

Need a well experienced and understanding Need a well experienced and understanding Leader for Wet & Dry Processing from Leader for Wet & Dry Processing from Product Development to ProductionProduct Development to Production

Coordinate and Communicate with Coordinate and Communicate with customer, Dalian merchandising and local customer, Dalian merchandising and local laundry for correct interpretation and laundry for correct interpretation and executionexecution

Create Washing Library ( Hanger ) by Create Washing Library ( Hanger ) by different washing methoddifferent washing method

The only department can comment and The only department can comment and make decision for Washingmake decision for Washing

No One can override the decision from this No One can override the decision from this department, unless decision from senior department, unless decision from senior management of MTFmanagement of MTF

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Design & Technical Design & Technical Department (1)Department (1)

Define the ResponsibilityDefine the Responsibility Provide Design Service to customer to adopt Provide Design Service to customer to adopt

for productionfor production Provide Creative idea to simplify the style to Provide Creative idea to simplify the style to

be production friendly if possiblebe production friendly if possible Communicate with customer design and tech Communicate with customer design and tech

design for more on aesthetic and constructiondesign for more on aesthetic and construction Coordinate and Coordinate and CommunicateCommunicate with with

merchandising, technical and pattern merchandising, technical and pattern department for any needdepartment for any need

Provide on site product development service Provide on site product development service when customer visitwhen customer visit

Work with design visit and attend fit session if Work with design visit and attend fit session if needneed

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Design & Technical Design & Technical Department (2)Department (2)

Promote the experienced and potential pattern makers to be Tech Merchant ( TM ) to relieve Senior TM workload

Give training for the promoted TM / TM assistant for how to write comment when sending sample together, and how to write e-mail regarding technical issue

In the future, the TM assistant can be hired with good background of English only, so that they can learn knowledge during duty everyday

When Tech department has enough manpower, TM should work with QA team closely means going to factory more to upgrade the quality of goods.

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Pattern Department (1)Pattern Department (1) Define the ResponsibilityDefine the Responsibility

Coordinate with merchandising and Coordinate with merchandising and technical departmenttechnical department

Provide / Estimate the Best efficient Provide / Estimate the Best efficient consumption use for fabric and trims consumption use for fabric and trims at the Right 1at the Right 1stst Time Time

Follow customer requirements for Follow customer requirements for pattern and block usepattern and block use

Provide suggestion to customer to Provide suggestion to customer to make better fit if possiblemake better fit if possible

Try to maximize the output of Try to maximize the output of pattern to achieve the company goalpattern to achieve the company goal

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Pattern Department (2)Pattern Department (2) Efficiency ( 3D Fit Solution ) –A. Investment : Software – USD 12,000 per module ( Category -

Bottom, Shirt, Blazer etc. ) for 1st year Upgrade / Maintenance – 15% for following each

year Visual Dress Form – USD 2,500 per formB. Benefit / Advantage –

Reduce Time, Number of Sample and Cost Allows immediate result without making

physical sample or muslin Offers an excellent communication

tool between customers and pattern makers By deploy to 3D Fit Solution, the headcount

and Pattern Maker can be reduced comparing to using by CAD

Market User : JC Penny, Newway ( Mother Works ), TAL and Giordiano

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Internal Sample Room (1)Internal Sample Room (1) Quality Right 1st Time ( Sample Order

Form ) – Information is very important how Quality Sample to be made at Right 1st Time

To avoid information error – APC must submit the CSP form together when submit sample package

Sample Package is not ready – Cannot be allowed to send into Cutting Room

Sample Order Training – Refresh regular training for all new and existing merchandising

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Internal Sample Room (2)Internal Sample Room (2) Accuracy / Productivity ( Award Scheme ) –

Accuracy Award Scheme –•Concept of Quality Right 1st Time has to be adopted for all and tie-in with award scheme

•Any mistake should be recorded accurately•Award criteria should be changed based on accurate record

Productivity Award Scheme –•Productivity Award has to matched with Quality Right 1st Time concept to be adopted

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