Internal Customer Contracts

Date: 15^th October 2001

Background

As part of the review of the Pre-production Strategy and Processes, all department heads will be asked to propose and agree ‘Internal Customer Contracts’.

These Contracts will make it clear to the Business Management and to the internal Process Team members, what the process Dimensions, Boundaries and ‘Ground Rules’ are.

Examples in Simple Form.

Managing Director – Sales, with Sales Director.

• 1. Obtain Range Plan from each Department.

  2. Agree Range Structures and Margin Targets

  3. Secure Delivery Slots with the Merchandising Executive

Managing Director – Sales, with the Design Director

• 1. Agree Range Structure – Size of Range and Target Values

  2. Agree Products and Price Points – Matrix of Fabrics by Selling Price

  3. How many Prototypes to make.

  4. How many Prototypes to show to achieve Target Sales.

Managing Director - Sales, with the Fabric Technical Director

• 1. Must not allow Unapproved Fabric Qualities into the System at the Point of Selling.

  2. No more than 10% Risk Fabrics to be shown at Final Garments.

  3. All Fabrics to be given a 50 hour Wearer Trial before Final Garments

  4. Be responsible for feeding the Cutter who will cut the Wearer Trial Garments.

Managing Director – Manufacturing with the Garment Technical Director

• 1. Deliver Pre-production Packs of Appropriate Information to Factories eliminating the need for UK based technical staff to travel offshore for the purpose of conducting Pre-production Meetings.

  2. Deliver a Pre-production Process capable of replacing the process of Piloting with Efficient ‘First Production, Style Change’ Practices

Design Director with Design Room Manager

• 1. Deliver ‘Right First Time’ New Style Development to the Design Team.

  2. Employ current Manufacturing Methods when developing all New Products.

  3. Fully optimise existing Stroke Numbers for the development of New Style.

  4. Employ Front and Collar Shapes, which utilise existing Jigs.

Typical Contract Structure ( Based on the ‘Fisher Controls’ model )

The original document obtained from Fisher Controls is not available therefore the following example is compiled from my memory of the content.

Each line on the lists above should have a formal contract document outlining:

• • The contract title, i.e. ‘Agree Range Structure and Margin Targets’

  • The People with whom the agreement is made.

  • A list of the recipients of the output of the contract.

  • Contract Frequency. (i.e. Once a Season or Once a Stroke Number)

  • ‘Dates by When’, or, ‘Time Periods Ahead of Plan’ by when the output is too be finalised.

  • A list of relevant process steps needed to achieve the contractual agreement.

  • A list of other activities / dependent events required to be completed before the objective can be met.

  • Impact of slippage.

Draft Example Contract:

See next page.

Internal Customer Contract

Contract Title:

Deliver Pre-production Packs of Appropriate Information to Factories eliminating the need for UK based staff to travel offshore for the purpose of conducting Pre-production Meetings.

Contract Between:

Managing Director – Manufacturing - and the Garment Technical Director.

Contract Output Affects the Role of:

Garment Technical Executive; Factory Garment Technical Managers: Factory Managers; Merchandising Executive, Sales Director, Purchasing Manager, Quality Manager

Contract Frequency:

Once per Stroke Number & Loading Factory.

Contract Completion Date:

Minimum of 3 Weeks before ‘Feed On’ to the Manufacturing Production Team

Key Process Steps:

• • Stroke Number to be Contract Sealed.

  • All Product Information made available to commence Manufacture (Manufacturing Sequence with SAH, Trimmings, Labels & Packaging Materials}.

  • All Pattern Work Completed and Jigs, Dies & Markers made Available (Fabric Allowance, ‘Make Up’ Method and Delivery Presentation Method).

  • Factory ‘Test Lot Pack’ available (3 Cut Garments, Sets of Correct Trimmings, Copy Patterns and Markers, Copy of Contract and Contract Sealed Garment)

  • Contract Seal made using Correct Methods & Standard of Finish.

  • Web Product Data Management file complete and up to date with all product and technical information.

  • Full Pre-production Agenda Simulated and all notes completed ahead of delivery..

Dependent Events:

• • Key Dates Plan & Contract Available Sales Team

  • Garment Contract Sealed Technical Executive

  • Production Factory and ‘Feed On Date’ Identified Merchandise Exec.

  • All Design & Fabric Technical Information in Web Product Data Management. Design & Fabric Tech.

  • All Trims Delivered and Available Purchasing

  • All Labels and Packaging Delivered and Available. Purchasing

  • Manufacturing Process Constraints Identified Manufacturing Manager

Impact of Slippage: Factory Style Change and Feed On Delayed