by [TC]²
Pipeline Analysis
(PA)
How Does Your Business Flow?
Pipeline analysis can be used by members of the U.S. Integrated Textile Complex to target places in the supply chain where better process technology, information technology and coordination between pipeline members can reduce the time to market.
The prize
in this competition is a greater share of the global market. It's a
competition that pits the U.S. Integrated Textile Complex against the
world, where faster, simpler steps from raw materials to consumer products
to the point of purchase may provide a necessary competitive edge. "Pipeline
analysis" can reveal ways to speed and smooth the process of getting
the goods into the hands of consumers.
Pipeline analysis is one technique developed under the Demand Activated
Manufacturing Architecture (DAMA) project. The goal of the analysis
is to strengthen the competitiveness of the complex, including the fiber,
textile, apparel, and fabricated product sectors. Increased competitiveness
will result in the recapture of lost shares in the global marketplace.
The DAMA project has written a Pipeline Analysis Guide to describe the
necessary steps in the analysis.
The System "As Is"
A typical "as is" supply-chain pipeline is an unintegrated
collection of businesses. The goal is to determine where changes in
a "link" in the supply chain or where changes in interrelationships
among links will result in reduced product throughput time, lead time,
and stock-outs and where non-value added activities can be reduced or
eliminated. But first it is necessary to understand the pipeline as
it is today. Pipeline analysis starts at the business function level
(information flow, inbound and outbound logistics, production, customer
service, etc.) for each link in the supply chain.
Process level representation of the apparel sector
The DAMA project used a mail-order catalog as a model.
Links in this chain included the fiber company, the textile company,
the apparel company, and the retail company. The initial description
of this pipeline system that produced a men's nylon jacket, led to a
requirements document, in which problems were stated and remedies were
hypothesized. Information flow, business flow, and process flow within
and among links were analyzed to reveal barriers to competitiveness
such as delays in delivery, high inventory, and the inability to respond
rapidly to changing market demands. Studies identified both direct and
indirect costs associated with each product. From this and three other
studies, a series of high level Process Step Maps were published. See
DAMA Publications for availability.
The System "To Be"
The next step was to analyze the components of the flow processes in
order to test the hypotheses and to introduce possible remedies to the
problems that had been identified. Analysis tools used included value
engineering, methods engineering, "PERT" charts, and production
planning and control. Computer simulation tools were used to create
the "as is" scenario, to simulate changes in the variables
necessary to test the hypotheses, and to evaluate the results of these
changes.
Competitive advantage of "To Be" pipeline.
The pipeline analysis method thus becomes a cyclical process.
It gathers data, tests hypotheses, measures results against requirements
then, refines those requirements, and repeats the steps until the goals
of the analysis are met, and solutions to the problems in the system
are found. In the mail-order catalog model that was used, the areas
investigated to improve system performance included "just-in-time"
manufacturing, changes in inventory management, and shipping from the
apparel manufacturing company rather than the retailer. These changes
resulted in gains in the overall competitiveness of the pipeline. In
addition, the analysis recommended a variety of pilot projects to verify
and test the results.
The pipeline analysis method can serve as a useful tool for members
of the U.S. Textile Complex to propose and test possible innovations
in information and process flows to make the industry more responsive
to market demands. A more responsive U.S. textile industry will thus
have a competitive edge in the world's markets.
For more information, please contact:
Jim Lovejoy
Textile/Clothing Technology Corp.
211 Gregson Drive
Cary, NC 27511
(919) 380-2184
FAX: (919) 380-2181
e-mail: jlovejo@tc2.com