Coats Digital has announced that Thanh Cong Textile Garment Investment Trading JSC – a Vietnam-based award winning sportswear and knitwear manufacturer – has realised a 14 per cent increase in efficiency following the implementation of Coats Digital’s GSDCost.
Apart from efficiency increment, the manufacturer has been able to save enormous cost with each production run due to more accurate and transparent costing and capacity forecasting.
By establishing international standard time benchmarks, based on accurate Standard Minute Values (SMVs), the company also witnessed an increase in orders, a significant reduction in overtime hours and material waste, and increased transparency around its labour costs to support an achievable performance incentive programme, Coats Digital reported.
Prior to implementing Coats Digital’s SaaS-based cost optimisation solution GSDCost, Thanh Cong faced challenges in its costing and capacity forecasts on inaccurate historical data stored in multiple Excel spreadsheets which were difficult to update in real-time across all costing, capacity planning and manufacturing teams.
As a result of inaccurate standard minute values (SMVs) regarding CM (Cost to Make) production times, and poor costing and planning visibility, Thanh Cong suffered low efficiency rates, high defect rates and late deliveries, which often resulted in additional air shipment costs and an unnecessary amount of material and people-hour wastage.
Following the implementation of GSDCost, Thanh Cong was able to establish international standard time benchmarks based on standard motion codes and predetermined times. This enabled the sales, costing, planning and manufacturing teams to communicate efficiently using the same language, based on a scientific method for correctly analysing manufacturing costs.
As a result, business units could fairly negotiate product prices with customers, and a more succinct single view of overall CM costs enabled Thanh Cong to realise a production efficiency increase of 13.82 per cent.
Tran Thanh Bang, Thanh Cong Smart Factory Team Leader, commented, “GSDCost is the only globally recognised international method-time-cost standard to successfully achieve cost optimisation and sustainable improvements to productivity. GSDCost has enabled us to not only increase our overall efficiencies by a staggering 14 per cent, but has very positively impacted our bottom line, by saving us over US $ 12,000 in costs per 22,000-piece production run.”
An open and transparent production capacity platform has also enabled Thanh Cong management to set achievable productivity goals based on a fair standard of working hours. The introduction of achievable performance incentives has consequently greatly improved staff morale and motivation, as goal setting targets are now based on realisable targets.
“Another great advantage is that there is no longer any disagreement between the sales and production teams regarding cost plans, which means a much more peaceful working environment, where staff can occupy themselves with more meaningful activities to enhance the business. Our staff are also enjoying working towards incentivised good performance targets, based on real and achievable goals,” added Tran Thanh Bang.
Patrick Chau, Customer Success Manager, Coats Digital, mentioned “We are delighted that Thanh Cong has realised such fantastic efficiency results and significantly increased its profitability as a result of implementing GSDCost. Thanh Cong’s planning and sales teams were quick at learning how to get the most out of the GSDCost solution and its waste reduction achievements and increased transparency around labour costs, will greatly support the company and its brand partners’ social responsibility goals to meet increasing consumer demands for a more transparent, sustainable and ethically responsible apparel supply chain.”