ERP

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Study On ERP in GMT Of Textile Industry
INTRODUCTION:
The apparel industry is one of the most important sectors of the
economy with regard to investment, profits and employment generation
all over the world. The important segments covered in the textile
industry include home decor and furnishings along with clothing and
fashion accessories for children, women and men.
The time consumed in actual sewing is not even half of the total time
required in assembling apparel. It’s a series of steps involving
procuring/outsourcing raw material, designing, re-designing as per
customer need, assembling, marketing, fit-in-sessions, and finally
shipping to wholesalers/retailers that take the rest of the time. Apparel
is also short lived – changing weather and climatic conditions,
fashion trends and geography all affect the garment industry. So
manufacturers’ responsiveness, coupled with shorter and quicker
supply chain movement, is a must. This vital time can be compressed
using the novel, nimble and nifty Enterprise Resource Planning, ERP
solution that seamlessly integrates the complete fiber-to-textile-to-apparel-
to-retail operations and gives you the capability to operate
more effectively, respond quicker and grow more profitably.
PRE-SCENARIO OF E.R.P:

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What is ERP?
ERP (Enterprise Resource Planning) is revolutionary concept in the
contemporary world. All the information of an enterprise under one
roof for assisting planning & implementing decisions having complete
visibility-that is the main object of ERP .
Now-a-days, it has been proved that ERP is an obligation for any
manufacturing industry, specifically it can be mentioned with no
doubt that ERP is necessary in the apparel & garments industry, as in
this sector finished apparels are outcomes of many interlinked processes
in the supply chain handled by different factory types and a good
number of people are involved in this process. In order to meet on time

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delivery dates of customer orders, entire supply chain management
should be well practiced by the correspondents.
ERP software in textile
When lots of information are moving in the air i.e. all information is
tracked manually, then it is almost impossible to find out the exact
situation of customer order, then it is almost impossible to find out the
exact situation of customer orders, which steps is the blockage,
therefore often delay occurs in specific decision making due to lack of
the visibility.
Production control system for garment industry:
What type of equipments and investment do we need to use
the system?
To start using the ERP Garment Kontrollis system You don’t need any
major investment. You need a personal computer or laptop, a laser
printer, a cod bar reader – scanner (optional – it increases the speed
and the precision of working with data) and a stable internet

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connection (at least 4Mbps). We offer the server, You don’t have to pay
anything for setting the system, no licenses to buy. Everything works
based on a monthly fee after 30 days of free testing.
Do we have the opportunity to test the system before signing a
contract?
Yes, with the Kontrollis online production control system our customers
have the possibility of a 30 day free testing. We can subscribe any time
for a risk free testing, no credit card info needed or contract in testing
period.
How much time do we need to process the data about
production?
Using the digital data scanner (bar code reader) the data regarding a
one day work of one employee can be input in less than 1 minute. So,
at a firm with 50 workers one person can process all the production
data in less than 1 hour.
Which is the effect of this production control system on the
company’s activity and results?
After subscribing to the Kontrollis production control system our
customers had a significant increase of productivity, from 10 to 30%.
These effects, at a medium sized firm (50-250 employees) could mean
a production growth of a few hundred thousand dollars in one year.
That means that the earning is a few time more than actual costs
(monthly fee + costs of paper). So You are going to have extra profit
from the first months of using the Kontrollis online production
controlling software.

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Is the Kontrollis System good for lohn production systems?
Kontrollis is ready for both main production systems in lohn (using
raw materials of contracted customers) or under own label production.
For both systems Kontrollis can control the worker’s productivity and
material using efficiency. We have customers from both system and
others who produce in both way in the same time and have positive
results with our cloud based production control system.
Do we need to hire an IT man to use the system?
No, we don’t need IT specialist for using the system. Is it enough to have
a footwear (footwear etc.) specialist who has basic computer user skills
and knows your production processes.
Is my data safe with Kontrollis?
Kontrollis uses high performance servers and security systems to keep
our data safe. And on the other hand we pay to this aspect a very high
attention, because we know that we depend on long term on customers’
trust and success. As we don’t use prepaying, we only survive and
develop business if customers are satisfied on long term with our
services. We plan to have a long term partnership with us so we focus
on your trust.
Our company is also responsible for data security, meaning, your main
account administrator has to set the access limits for every other user
according to their skills, responsibilities and trust.

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Implementing this system presumes a lot of extra work?
As any innovation or new project implementing the Kontrollis online
production control software for garment industry also needs extra effort
in the beginning. According to the complexity of your production
process, the number of employees, the existing production controlling
methods (other implemented software, excel tabels or handwritten
accounting), the available time etc. it presumes one to a few months of
harder work.
After implementing the software your company will save lot of work
using the system. After existing experiences at other customers the first
year after starting to use the system had a productivity growth of 10-
25% with the same number of employees.
What happens if it is too complicate for me?
When our account is set we’ll get user’s manual and some tutorial
videos. Also there are contact forms and e-mail addresses if we need
help.
Also after subscribing we’ll get detailed flow charts and tutorial video
of the production control system.
No investments required:
Any textile factory can have an effective controlling system without
any investment. We do not have to invest in servers, network
equipments and software license; we just have to subscribe and pay a
monthly fee for using it after 30 days free testing. All of us need a laser
printer, a broadband internet connection and a bar code scanner.

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We can control the production costs in factory:
The production controlling system for textile industry offers exact and
detailed information about the production costs (material and salary)
for all the orders and styles. We know precisely how much it costs us to
produce a product. We can check the estimated and the real costs,
where are differences and where can we have some savings.
We can know the work efficiency of each employee:
We can know exactly the daily and monthly work efficiency of each
employee, based on which we can achieve a better organization of the
production and we can implement motivation systems that will
increase our productivity.

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Pay our employees based on their productivity:
The system allows you to implement a payroll system based on
individual productivity of each employee. Employees know that they
earn exactly as much as they work. You know exactly what and how
much each employee works and the system also calculates their wages.
Linking the salaries directly to the individual productivity is an
important motivational factor for the employees and leads to high
productivity rate.
Control the quality deficiencies:
With this system our managers can easily identify the persons who
make mistakes in the manufacturing process that lead to quality
deficiencies. Every operation is linked to the worker who did it with
the bar code system. Having this information, we can implement a
strict quality control and significantly reduce the costs related to

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quality defects. Employees will pay more attention to quality and also
quantity.
Pre-calculations and production planning:
When we receive an order, the system immediately calculates the
expected manufacturing costs, giving us the necessary information for a
price calculation. The system also offers important information that
can help us in organizing the production more efficiently.
We can control what is happening at the factory, wherever
we are in the world:
All of us need is an internet connection, and we know exactly the
status of the orders, the daily production and all the important
production data even if we are in other countries to deal with
customers.

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Kontrollis ERP Garment Industry offers now the production controlling
system free testing for 30 days.
Example of ERP Software:
AIMS 360 Apparel ERP Software-AIMS Remote Link:
The latest update of the AIMS Remote Link’ iPad app includes a useful
shopping cart feature that allows for easier order tracking. As you add
orders using the AIMS Remote Link order taking app, you will see a
number at the top right corner of “Cart”, which will indicate the
number of items that are being ordered. Simply scroll through your
look book, select an item, add it to your cart, swipe to scroll to the
next color

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or new item you want and select “Add to Order”, and you will see the
number increase in your cart. The good thing is that you can select
the quantities for each item in the cart after you are done selecting
what the customer would like to order.
Benefits of ERP in Apparel Industry:
Supplier
benefit
Management
benefit
Employee
benefit
Customer
benefit
Information
in time
about
material to
be
provided.
Cost savings,
improvement
in savings.
Good
customer
relationships.
Satisfaction
in working
and
achieving
goals with
good team
work.
Good
services.
Good
quality
at
cheaper
price.
Reduction in cycle time:

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As of now, allocation of material to specific customer order is not
possible with the current system. Such allocations are useful for
making deliveries as planned, as there is no possibility of the material,
which is required by one order, getting consumed for different order. In
such cases earlier order would get delayed if material were not
available in the stock while production time is spent on other order,
which could have waited without causing any problem.
Cost savings:
Company losses 2% of its sales value in discounts, which are the result
of surplus production, implementing quality management system can
help to bring down excess production, as management will be assured
of the quality right from the raw material itself. Supplier developer
module would be useful in proper selection of suppliers, which can
focus on quality, cost and delivery aspects of supplier.
Reduction in machinery downtime:
5 % machinery downtime is attributed to non-availability of raw
material in the stores. This is due to absence of proper planning system
and due to communication delays at every place because of
information recompiling. Prompt communication coupled with
effective supplier selection module and planning system would be
useful in bringing down the machinery downtime.
Improvement in sales:

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75 % customers place repeat orders. Three factors-price, order and
delivery affect orders. Integrated system will definitely be useful on this
account. Price is one of the causes of losing customers; there is ample
scope for cost reduction and therefore company can offer lower prices
and incentives to attract customers through integrated information
management solution.
Customer satisfaction:
Current system is ineffective in tracking problems related to customers.
The response regarding effectiveness falls in unsatisfactory category.
Capacity planning for received order also falls in average category.
Efficient capacity management system can bring down the delivery
time for execution of the order and improve customer satisfaction. This
management scheme can be very useful in maintaining better customer
relations with prompt response and by knowing their past history. Well
formulated procedures for customer dialog will be useful in having
better customer relations. It takes approximately 3 days to answer any
of customers queries. This period can be brought down to a day, which
will have very good impact on customers perception of the oganisation.
Conclusion:
Thus, due to the globalisation information Technology has become a
very important asset to the textile industry. With the development of
the data management system for production and on-line data

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monitoring systems on the latest machines, the textile industry will
flourish with all the glory to it.
REFERENCES:-
 Enterprise Resource Planning by ALEXIS LEON published by
TATA McGraw HILL, 1999 Edition
 E.R.P by PARAGDIWAN and SUNILSHARMA published by
PENTAGON PRESS, 2000 Edition
 E.R.P A Managerial Perspective by SADAGOPAN published by
TATA McGraw HILL, 1999 Edition
 www.erpinform.com
 www.google.com
 ERP Garment Industry.htm

ERP

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