Beruflich Dokumente
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Merchandising
Documentation on the Buying Process, Time and Action
Calendar (TNA) from Order Confirmation to Delivery.
Submitted by:
Nitin kumar
DFT (2014-18)
Time & Action Calendar
The critical path or TNA is a proper collaboration of Time and action. In a Textile
industry, to execute an export order, need to regular evaluation of production
activates with the help of times. This regular evaluation is called Critical Path
Method or Time and action plan or calendar. This is also known as TNA. By this
evaluation, a merchandiser can easily know the present situation of the order.
In the case of export order, we all know that, buyer mention lead time with order
sheet. According to this lead time, a merchandiser make Critical path. This
method helps to make sure an order delivery within lead time.
A time and action calendar is a most effective communication tool that proves it
to be useful to this task. The chart consists of time frames listed for every action
planned (major ones) and these actions need to be earned out on time. The
purpose of TNA is to cross check at frequent intervals, say, once a week, whether
the planning is being executed satisfactorily. The more frequent the checks, the
easier it is to correct deviations. TNA is especially useful when a buyer wants to
know the status of execution of an order.
Structure of T&A
Normally merchandisers prepare a plan of the order in a spreadsheet by listing
down the key processes in first column and planned date of action for each
process in the next column. This planning sheet is popularly known as time and
action calendar (TNA). Once TNA calendar is made, then it can be easy for
merchandiser list down their daily 'to do list' and taking it one by one. As per TNA
schedule processes can be executed on timely basis to track whether an order is
on track or it will get delayed.
- Process flow of an order with the list of task which need to be performed
- For sewing - batch wise and product wise capacity (production per day per
batch)
- Lead time of activities, e.g. raw material lead time, sampling lead time, etc.
► The buying cycle represents the buying pattern (to go to address their purchasing needs ) of the
customer at the market .
Season
Buying Process
►Buyer is always working on two season’s ranges simultaneously.
► While planning a range for the autumn winter season, the buyer simultaneously works on the
garment fittings, fabric sample and quality approval of the range for spring summer season.
► Buying cycle varies greatly between 9 to 18 months depending upon the buyer and the style.
► Competitive & changing fashion industry needs more frequent injection of merchandise.
► Buyers are keeping a substantial amount of budget to respond quickly to the fast fashion items &
short turnaround time. E.g: Zara, Top shop, H&M, George.
► This makes the fashion buying environment extremely challenging as the workload for two or
three seasons overlaps, leaving no time to pause in between new ranges.
Main Events
There are three steps in the buying process, also known as the merchandising cycle:
1. Merchandise planning
2. Merchandise buying
3. Merchandise selling
Merchandise Planning
Involves estimating, as accurately as possible, the various styles, colors, sizes, and prices of goods
consumers will purchase.
• Sales records
• Vendor information
Merchandise Buying
Merchandise buying - the process of purchasing merchandise for resale from manufacturers or vendors
during buying trips.
Shipping dates – very important because you want to stock merchandise in the stores during peak
selling periods to maximize profits.
Merchandise Selling
• The exchange of goods for money, from the retailer to the customer.
• Sales training – store personnel is responsible for training the sales staff.
• Buyers provide information to the staff, helping them to effectively sell the
merchandise.
Introduction
•It is designed to control the key events needed to get the right apparel products, in the right mix,
at the right price to the right customer at the right time.
•Also called as Merchandising calendar, Key events calendar or Critical path calendar.
A planning tool….
•It is the central mechanism from which all marketing schedules and all merchandising and
manufacturing plans evolve.
•It is the clock that drives merchandising product development schedules, manufacturing planning and
shipping schedules.
•It sets forth the starting and completion dates for all critical events necessary to achieve a
successful season.
•The calendar includes information about the name of the buyer, season, style, wash and quantity.
•The calendar includes the target dates for each event such as pre production garment approval, lab dip
approval, pattern approvals and when graded sates of pattern should be sent out.
•The person who is responsible for an event must sign it off in the system when the system has been
completed so that everyone can monitor the status of the line development.
Key Elements of a merchandising calendar-
•It is the merchandiser’s deadline for having all prototypes and pricing for a new product line
completed.
•Merchandisers work back from this date to create their product development plans.
•It is the date of seasonal sales meeting where the merchandising team presents the line to the sales
force. The final line adoption committee meets prior to the line preview date to select those styles that
will make up the final seasonal line.
•It is the merchandisers deadline for having all sales samples ready for the sales team to begin
presenting the new line to the customers.
•This deadline is crucial to the success of the sales effort, since most sales representative schedule their
earliest appointments with their most important customers.
If a sales appointment with a retailer is cancelled due to late delivery of samples, the retailer will most
likely reschedule the sales appointment at the end of the buying season when there will be minimal if
any open to buy available.
•It measures the effectiveness of a product line for the merchandising department.
•A graphic analysis of this plan can project increase or decrease in overall sales for a season.
•It shows season to date as well as shipping statistics for a specific week or monthly time period.
•It helps to determine whether or not the product mixes being delivered to distribution meet the
shippability
•It determines the critical functions necessary to perform an activity or series of activities required to
achieve an overall objective.
The activities involved in the development, execution and delivery of an apparel product line
must be analyzed to determine the critical functions necessary to achieve a successful season.
What determines a critical function is whether an activity that follows a particular function can
successfully take place without the critical function being accomplished. For example, a
prototype cannot be made without a pattern being created or fabric being ordered. Fabric cannot
be ordered without researching suppliers. A pattern cannot be created without a silhouette. Each
of these functions is critical to the succeeding activity and to the final objective of development
of a product line.
•After the critical functions are selected, each one must be analyzed to determine the time required to
accomplish it.
For buyers
For manufacturers
A time and action calendar is a most effective communication tool that proves it to be useful to this
task. The chart consists of time frames listed for every action planned (major ones) and these actions
need to be earned out on time. The purpose of TNA is to cross check at frequent intervals, say, once a
week, whether the planning is being executed satisfactorily. The more frequent the checks, the easier it
is to correct deviations. TNA is especially useful when a buyer wants to know the status of execution of
an order.
Structure of TNA
Normally merchandisers prepare a plan of the order in a spreadsheet by listing down the key processes
in first column and planned date of action for each process in the next column. This planning sheet is
popularly known as time and action calendar (TNA). Once TNA calendar is made, then it can be easy for
merchandiser list down their daily 'to do list' and taking it one by one. As per TNA schedule processes
can be executed on timely basis to track whether an order is on track or it will get delayed.
- Process flow of an order with the list of task which need to be performed
- For sewing - batch wise and product wise capacity (production per day per batch)
- Lead time of activities, e.g. raw material lead time, sampling lead time, etc.
Normally TNA does not depend on fabric used in merchandise like woven or knits. TNA is largely
depends on the particular process flow of an order, machine requirement and available production
capacity. In TNA planned cutting date (PCD) and ex-factory date these are the two most critical dates.
4. It gives the clear idea about the minor or sub activities that need to perform during order
processing at different level.
5. TNA gives the idea about the status of running order andtalks about delay or deviation, if any
6. TNA gives the dates at which raw material need to be sourced, in a way it helps to optimise the
inventory.
4. Holidays
5. Shipment details
7. Logistics facilities
9. Style complications
15. Lead times of various activities like L/C payment, custom clearance, etc
Sampling is the most crucial task and hence need to plan in TNA very carefully, some sampling stages are
very important so any deviation or delay in that will affect the whole TNA.
Proto sample: The submission of proto sample totally depends upon buyers enquiry date.Any delay in
proto submission or approval will affect order conformation date, which will subsequently affect the
submission of fabric development and fit sample, as without proto approval it’s impossible to proceed
further. In sample TNA it is shown that the planned proto submission date is 09-06-2012 and planned
approval date is 27-06-2012, i.e. 15 working days are kept for proto sample approval.
Fit sample: After approval of proto sample manufacturer starts working on fit sample, that needs to
submit exactly at planned date. Any delay in fit sample submission will cause the delay in P.O., size set
sample submission. Fit sample must submit within 45 days of proto approval as to get the sample of bulk
fabric it takes 20-25 working days to get in-house; hence after approval of proto sample i.e. on 27-06-
2012, the planned fit sample submission date is 27-07-2012. Sometimes fabric suppliers are nominated
by buyer or buyer will supply the fabric in either case it may not take more time. Hence, in time and
action calendar approximate 1 month gap is shown between proto sample approval and fit sample
submission. Buyer must give the comments on fit sample within 7 days. Any delay from buyer side will
directly affect the further process. To make fit sample process to complete within time period, the
planned approval date for fit is 22-08-2012 i.e. 21 days or 3 weeks is kept deliberately between first fit
submission and approval, in order to accommodate failures and re submissions of fit sample.
AD/Photo shoot/Salesman sample: These samples are generally submitted parallel with fit sample.
The same period is allotted to salesman sample i.e. 21 working days in TNA. These samples mainly used
for advertising or for visual merchandising or by sales man to collect the order from retailers; hence
from buyer’s perspective, timely submission of these samples is very important. Order size mainly
depends on this sample and any delay or quality issue in sample can reduce the order size. Sometimes
buyer may ask more number of samples e.g. 100 pieces, in that case merchandiser must keep in mind
the capacity of sampling room, time required to complete the demand of buyer, style complexity and
buyers submission date while making the TNA.
Size-set sample: This stage of sampling is most important, without size set approval bulk fabric for
production should not be cut in order to accommodate any changes by the buyer in the bulk production.
So, any delay in size set sample will directly affect PCD and subsequently affect the shipment date. Size
set sample need to submit with actual bulk fabric, hence for timely submission of size set sample
merchandiser should make sure that all bulk fabric should be in-house well in advance of size set
submission date. To avoid the delay, as soon as bulk trims and fabrics are get in-house within 3 days
size-set sample can be produced and submitted to buyer for approval. As per TNA, in table no. 2,
planned submission date of the size-set sample is on 08-10-2012 and expected approval is on 25-10-
2012 i.e.15 working days are kept for completion of size set sample approval process.
GPT sample: Before submission of PP sample it is very necessary that Garment Performance Test
should be cleared from buyer. This sample sent to either third party inspection or in-house testing lab.
While preparing the TNA merchandiser must keep in mind that test results should get approved from
buyer well in advance of PP meeting. For approval of GPT 20 days are kept in TNA to deal with any delay
in the process. Further, to avoid the delay in submission of PP sample and PCD, GPT is happening along
with Size-set sample i.e. from 08-10-2012 to 30-10-2012.
Pilot-run: Before going for actual production pilot run is carried out, in order to see the complications in
actual production and to give the sufficient time for learning curve of operator on sewing floor. In TNA
preparation one day is kept for pilot run for smoother and uninterrupted production. As soon as first
few lots are cut, make sure that they will immediately send for embroidery. Hence cut panels are
available on time for pilot run. In sample TNA PCD is on 31-10-2012 while pilot run is planned on 03-11-
2012, i.e. one day gap is kept for embroidery of cut panels for pilot run. Pilot run can be conducted
before or after PP Meeting.
Pre-production (PP) meeting and sample: Preproduction meeting is very necessary part of any
export order processing; hence merchandiser keeps one day only conducting PP meeting, in order to
discuss the expected difficulties during production. Any delay in this meeting or if more obstacles are
there to solve in production will directly affect the PCD and ultimately results in shipment delay.
PP sample need to submit within 10 days after approval of size-set and GPT samples. As without
approval of PP sample production should not start.To maintain the PCD merchandiser should be very
careful while preparation of TNA for PP sample. PP sample is normally pooled out from pilot-run, hence
submission date for PP sample is 03-11-2012 and approval date is 12-11-2012 i.e. 6 working days gap is
kept for PP sample.
Top of production sample: As soon as production starts and first few pieces are come out of line TOP
sample need to submit to buyer. It’s very crucial stage where merchandiser must keep in mind that by
any reason TOP sample get rejected then production end date is going to be delayed. This can straight
way affects the shipment date. In sample TNA, it is shown that sample is submitted on 17-11-2012 and
planned approval date is 21-11-2-12.
Fabric and trim sourcing is very time consuming process which includes desk loom and lab-dip
approvals, trim and art work approval, FPT approval. The fabric sourcing itself will take lead time of 30-
60 days depending upon type of fabric. For yarn dyed fabric it takes approx. 45 day, for piece dyed fabric
it take approx. 30 days and for fibre dyed fabric it takes approx. 55-60 days. In sample TNA, it is assumed
that fabric used is solid dyed hence 30 days lead time is considered while preparing the TNA, trims also
takes the approximate 30-45 days depending upon from where trims are getting sourced. Hence while
designing the TNA for sourcing the following activities need to keep in mind.
Fabric approvals: With approval of proto sample, merchandiser needs to submit lab-dip for colour
conformation. Lab-dip approval itself is a long process, as development of shade and submission itself
will take 10-15 working days for one attempt, hence for after 15 days of proto approval Lab dip is
submitted. Hence while preparing the TNA merchandiser must keep in mind that, complexity of shade,
buyer’s specification etc. any delay in lab-dip submission will end up with fabric production delay, which
will results in delay in; Size-set sample submission. Hence to avoid the delay in TNA 30 working days
buffer is kept from submission date i.e. 14-07-2012 to planned approval date i.e.20-08-2012.
Trims and art work: Trims and their art work are other important factors of sourcing department
after fabric. Timely approval of trims is very necessary. Trim production and shipment is also time
consuming process, especially if it is imported, hence while preparing the TNA 25 working days buffer is
kept between submission date i.e.14-07-2012and approval date13-08-2012.
Fabric Performance Test (FPT): Before fit sample submission date FPT report must be approved
by buyer, as fit sample submitted in similar fabric. As without approval of FPT fabric supplier can’t ship
the fabric to garment manufacturer. Any delay in FPT submission in will cause in fit sample submission
and may show impact on fabric in-house date which will subsequently affect the size-set submission
date.
3. Production
The most crucial part of any TNA is actual production. While preparing the TNA for production following
activities need to consider.
Planned Cut Date: The most important date for both sourcing and merchandising department. Most of
the time, TNA is prepared by keeping PCD in mind. To achieve the PCD on time sourcing department
plays important role, as lead time of trims and fabric production and availability for garment production
is controlled by this department. While preparing the TNA expected lead time and sufficient buffer
should keep for sourcing.
As there is embroidery included on cut panels, hence after cutting the cut panels need to send for
embroidery. Considering that embroidery is in-house then 6 working days after PCD to complete the
embroidery need to be consider in TNA. If embroidery is outsourced then accordingly more number of
days can be included in TNA.
In some merchandise, washing, printing is required hence merchandiser need to take care of the lead
time requirement for the same including necessary buffer.
Productions start and end date: These two dates are purely depends upon shipment date and
production capacity. As soon as PCD is achieved the production should start immediately after pilot run
and approval of PP Sample. Any deviation in this date will subsequently affect the TOP sample
submission date and shipment date. Number of days required for production is decided by capacity
allocated to that particular merchandise or number of days of available for actual shipment. For
mentioned sample TNA, following assumptions were made while calculating the number of days
required completing the production.
Assumptions:
No. of pieces= 10000
SAM of garment= 28.5 min
No. of M/c= 50
Efficiency = 45%
The calculation for production days can be shown as:
So, if 25 working days needs for production, then production will start on 15-11-2012 and it will end on
15-12-2012, if only one sewing line of 50 machines is allocated for 10000 pieces.
Finishing and packing: As finishing and packing is equally important, hence as soon as first lot comes out
of production, finishing and packing get started. This can be started parallel along with production. In
sample TNA, 17-11-2012 is a starting date of finishing and packing, while 18-12-2012 is end date. 3 days
buffer is kept deliberately between production date and finishing packing completion date to avoid any
consequences.
Apart from these main activities, following constraints merchandiser should keep in mind while
preparing the TNA for production.
3. Style complications
4. Operators skills
5. Start-up loss
Even though most of the users are aware of the term 'critical path method' (CPM), CPM may be
elaborated as ‘critical’ means 'possibility of non-conformance is higher' as per previous experience;
some even link 'critical' with cost involving that activity. Everybody select 'critical' activities
hypothetically based on intuition or previous experience or buyer's milestones and no one actually
makes PERT network of activities and then arrive at CPM.
It was found that in majority of the cases the buyer specifies target dates of key activities and based on
those target dates the manufacturing organization creates their own TNA adding buffer days (to ensure
that buyer target dates are not missed). It was also a common practice to have two TNA: one with few
main important activities (also called milestone activities) that are suggested by the buyer, and another
one with more number of in-between micro activities (in-house activities) to exercise control over
macro activities PERT network or Gantt chart should be mandatorily prepared to decide upon which all
activities should be there in TNA calendar. Merchandiser must prepare either and the resultant critical
path should be the activity chain for TNA calendar, all activities falling in critical path are critical
activities. Critical activities should always be on focus, a single minute delay in any of the critical
activities may lead to final shipment delay.
Conclusion
Garments manufacturing is not a business of 'One Man Show' rather it is a Team-Work where lot of
people, organizations, suppliers, buyer, sub-contractors and manufacturers are involved. Moreover, all
tasks have to be accomplished with in a given time frame to ship out the garments on time. Buyer will
not accept any delay in the garments delivery and if the garments cannot be shipped out on time then
there will be good possibility thatbuyer may cancel the order or may ask for air shipment or Buyer may
ask for discount. To avoid all such adverse situation merchandiser need to do proper planning to
execute any order.
TNA is most important activity for timely shipment. If any merchandiser is able to follow the TNA
properly then it will be not a big challenge to ship the garments on schedule.TNA for any production unit
is summery of sampling, sourcing and production activities and their sub activities. Merchandiser
generally makes the TNA on the basis of lead time mentioned by buyer, shipment date negotiation,
order quantity, production capacity. The milestones and key/critical activities dates are mentioned by
buyer while other in-house activities need to manage by merchandiser by keeping many things in mind.
With the help of TNA merchandisers can ensures satisfaction of each and every step with constant
follow ups and in shortest cycle time possible. Rapidly changing trends of the fashion industry is making
merchandising activities more complicated and so TNA. Merchandiser has to prepare good and flexible
TNA by keeping all facts and facets in mind. If used effectively, a good TNA can help factory to meet
production and shipment deadlines, increase inventory turns, improve customer service, and enhance
profits.
From my real life experience, I found that it is easy to make a TNA calendar but
maintaining the same is very difficult task. But you have to maintain it on regular
basis. Otherwise, there is no use of a TNA calendar.
Second Format
In second format (Format 2) scheduling of multiple styles is done in a single sheet. It
helps you to keep eye on each order quickly. All key processes is listed in the header
row with columns for start and end of the process. Against each style you have two
rows for planned dates and actual dates for the tasks. This format reduces no. of
sheets when a merchant handles dozens of orders. The difference is that you don't
keep name of the responsible persons or departments.
The time and action calendar preparation and maintaining it is same as the first
format. This TNA calendar format is more handy as you have carry less fewer sheet
of printout than previous one.
INTRODUCTION – ABOUT COMPANY
• As one of the world’s leading premium lifestyle brands, Tommy Hilfiger delivers superior styling,
quality and value to consumers worldwide.
• The brand celebrates the essence of Classic American Cool and provides a refreshing twist to the
preppy fashion genre.
• Since its debut in 1985, the Tommy Hilfiger Group has become a US$ 4.6 billion apparel and
retail company.
• Under the leadership of Founder Tommy Hilfiger and Chief Executive Officer Fred Gehring, the
brand can be found in leading department and specialty stores.
• Tommy Hilfiger today has become a global brand with strong recognition and a distribution
network in over 90 countries and more than 1,000 retail stores
Buying Strategies
• Tommy Hilfiger's brand doesn't have the luxury image of a Louis Vuitton or a Gucci. Instead, the
designer focuses on producing clothing that is "affordable, accessible, aspirational, cool
american classic," a strategy that has served the company well amidst the global recession.
• In today’s competitive global fashion market in which Tommy Hilfiger operates, companies
struggle with building sustainable and profitable customer relationships.
• The high-quality global fashion market in which Tommy Hilfiger operates are –
A common factual basis for the selection of most profitable market segments.