The adoption of the internationally recognised GSD™ methodology has also simplified costing and planning processes, optimised production efficiencies, eliminated overtime and boosted employee morale
Coats Digital is delighted to announce that GG Fashion (Cambodia) Co. Ltd., a subsidiary of leading global textile and apparel manufacturer, Ghim Li Global Pte Ltd., has achieved an initial 1 to 2 percent increase in overall production efficiencies since its three-phase adoption of Coats Digital’s award-winning GSDCost solution, in March 2024.
The implementation has curtailed unnecessary staff hours previously spent on laborious manual tasks and is expected to improve core style Standard-Minute-Values (SMVs) further within the year. Thanks to more accurate production targets, reduced overtime hours and improved performance initiatives, GG Fashion has also seen a significant boost in employee morale across its production sites.
GG Fashion (Cambodia) Co. Ltd., a subsidiary of leading global textile and apparel manufacturer, Ghim Li Global Pte Ltd., is a casual lifestyle fashion specialist, producing trousers, tops, skirts, dresses, bodysuits, jackets and hoodies. The company supplies over one million garments a year and boasts a workforce of over 2,200 employees across Cambodia. The company manages over 50 sewing lines and over 1,200 machine operators, and its customers include: Macy’s, Footlocker, Walmart and Aeropostale.
Prior to implementing Coats Digital’s GSDCost solution, GG Fashion faced several critical challenges. High production costs, inconsistent sewing outputs, quality defects and inefficient pre-production planning were among the most significant issues. These challenges resulted in late deliveries, additional costs and compromised product quality.
Wong Chen Hau (Jackson), Continuous Improvement Manager, GG Fashions, said: “As our cost and capacity forecasts were previously based on inaccurate historical data from past production experiences, we suffered unreliable efficiency targets, high defect rates, late deliveries, unnecessary freight costs and unplanned overtime costs. Without an open and transparent capacity platform providing the visibility we needed to create factually stable manufacturing costs or properly assessed production workloads, we additionally had to pay emergency costs to fulfil orders on time, which negatively impacted our profit margins.”
Due to the lack of a robust, scientifically based method-time-cost standard to create accurate cost and capacity forecasts, GG Fashion was often faced with uncertainty surrounding its capacity and garment cost processes, which also hampered its overall levels of quality control.
Darshana Sanjeewa, Industrial Engineering supervisor, GG Fashions, adds: “Before implementing GSDCost, we struggled with uneven skill levels among our sewing machine operators which led to higher costs and lower productivity. We also faced difficulty in maintaining consistent quality control, since we would sometimes need to substitute certain production runs with inferior fabric or threads to ensure we could make a profit and/or deliver on time. This resulted in a high level of defects and a loss in customer satisfaction.”
Following the implementation of GSDCost, GG Fashion was able to establish international standard time and cost saving benchmarks based on standard motion codes and predetermined times. This enabled the sales, costing, planning and production teams to communicate efficiently using the same language, based on a scientific method for correctly analysing manufacturing costs.
Wong Chen Hau (Jackson), Continuous Improvement Manager, GG Fashions, comments: “The integration of GSDCost with existing systems has fostered better collaboration across teams which has ensured timely communication throughout our business operation. We are now all benefiting from more precise planning minutes which have significantly improved pre-production planning accuracy and reduced the likelihood of short shipments or late deliveries.”
By standardising SMV production line motion handling and improving operator efficiency, GG Fashion has achieved a 1 to 2 percent overall improvement in factory efficiencies (dependent on product type, season and quantities) within four months- which has led to reduced production costs and increased productivity. The standardisation of processes has also resulted in better quality control and higher On-Time Delivery Performance (OTDP) which has ensured greater customer satisfaction and reduced penalty charges for late shipments or high defect rates from buyers.
Darshana Sanjeewa, Industrial Engineering Supervisor, GG Fashions, adds: “Coats Digital’s GSDCost solution has been a game-changer for us. We’ve seen a noticeable increase in productivity and efficiency and our delivery schedules we are now much more reliable. Not only has this helped to optimise our profit margins, but also improved our reputation with key customers. As a result of being able to introduce accurate, fact-based performance targets along with greatly improved production processes – minimising the need for last-minute overtime requests – we have also boosted staff morale across the organisation quite considerably.”
GG Fashions’ production teams are fully committed to continuous improvement to achieve further benefits as the system matures and expect to further optimise core style Standard-Minute-Values (SMVs) by the end of the year.
Coats Digital’s GSDCost method analysis and pre-determined times solution is widely acknowledged as the de-facto international standard across the sewn products industry. The solution supports a more collaborative, transparent and sustainable supply chain, in which brands and manufacturers establish and optimise ‘International Standard Time Benchmarks’ using standard motion codes and predetermined times. This use of a common language and standards supports accurate cost prediction, fact-based negotiation, and a more efficient garment manufacturing process, while concurrently delivering on CSR commitments.
Boris Lu, Customer Success Manager, Coats Digital, said: “We are delighted that GG Fashion has realised such great results since the successful integration of GSDCost into its operations earlier this year. An initial one to two percent increase in production efficiency is testament to the power of scientifically-based methodologies in transforming manufacturing processes – and this is only set to improve as GG Fashions starts to capitalise on the full capabilities of the solution in the months ahead. GG Fashion’s dedication to embracing this technology has not only streamlined its operations but also significantly boosted employee morale and customer satisfaction. We are proud to be part of its journey towards operational excellence and look forward to supporting GG Fashion’s continuous improvement and sustained success in the future.”
Key Benefits and ROI for GG Fashions (Cambodia) Co.Ltd
- Increased productivity by 1-2 % depending on product type/season/quantity
- Expected further reduction in SMVs – by March 2025
- Improved capacity planning
- Improved ODTP
- Reduced overtime hours
- Optimised quality improvements
- Improved profit margins
- Enhanced communication and collaboration between planning and production teams
- Increased customer satisfaction levels
- Fact-based stable manufacturing costs
- Enhanced staff morale
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