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Study on ERP in Garments of Textile Industry
What is ERP?
ERP (Enterprise resource planning) can be defined as a software solution that addresses the
enterprise needs taking the process view of the organization, to meet the organizational goals
tightly integrating all functions of an enterprise It is an industry term for the broad set of
activities supported by multi-module application software that help a manufacturer or other
business manage the all the parts of its business. ERP facilitates integration of company-wide
information systems with the potential to go across companies.
Enterprise Resource Planning is the latest high-end solution information technology has lent to
business application. The ERP solutions seek to streamline and integrate operation processes and
information flows in the company to synergies the resources of an organization namely men,
material, money and machine through information. Initially implementation of an ERP package
was possible only for very large Multi-National Companies and Infrastructure Companies due to
high cost involved.
Figure: Components of ERP
ERP for Apparel Industry:
Technology is a necessity in today's business, and the apparel industry is no exception. ERP is
used in Apparel Industry with specific capabilities for apparel design, production, and supply
chain management. The result is a view into all of a business process that delivers functionality,
visibility, and cost-and time-efficiencies along every step of operations from concept to
consumer. So, nowadays ERP solutions are largely used for effective monitoring and control,

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accurate planning and scheduling of orders, better data predictions, quick response to query and
on-line detailed information of orders.
Uses of ERP in Apparel Industry:
1. Production Planning & Control
2. Manufacturing Resource Planning (MRP II)
3. Material Requirement Planning(MRP)
4. Master Production Schedule
5. Customer Relationship Management (CRM)
6. Bill of Material (BOM)
7. Warehouse Management
8. Inventory Management
9. Purchasing Management
10. Shop Floor Control (SFC)
11. Capacity Requirements Planning (CRP)
12. Cost Reporting/Management
13. Lot Traceability
14. Engineering Change Control
15. Repetitive Manufacturing
16. HR Management
17. Plant Maintenance
18. Service Management
19. Finance Management
20. Purchase Order Management
21. Quote Management
22. Quality Management

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Quality Management by ERP in Apparel Industry:
Quality Management in resources ERP is 100% configurable module. This module allows a wide
variety of characteristics and parameters to be specified in the stand inspection operation and
maintain an extensive history to improve product quality and identify recurring problems.
ERP Quality Management allows the quality department to define its own quality test cases
required at different juncture of production, beginning from quality check required during the
inward of raw materials. Further Quality Characteristics, parameters and expected results, under
each quality process check can be configured without any programming assistance.
The material inspection sub system offers a wide range of capabilities for process supervision
and control. These capabilities are fully integrated with the other modules such as purchasing,
inventory management and shop floor control function to ensure that the right quality control
procedures are followed. Capabilities include on-line maintenance of product specifications by
production method and customer, event driven sample requests, sample log-in, test results entry;
quality performance analysis and equipment calibration support is available in ERP.

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Product Data Management (PDM):
Different departments of a textile or an apparel industry have responsibility to perform various
types of tasks. PDM defines responsibility of the persons designated to complete their task in a
regular manner and their data could be used by others when needed. PDM helps to create, store
and re-use product information in efficient way. Every product information are input in the
system and its links with different department such as CAD design, measurement, sketch,
components on prototype, product specifications, production manager, designer, planning
manager. The authorized persons can access the system and work with the latest data.
Figure: PDM
Product Life Cycle Management (PLM):
Now all CAD companies include PLM in their software system because PLM system allows to
go back to design library at any time to reprocess and reuse the data. Designer can change the
design in different ways as they wish. Design can be converted easily into specification sheet and
these designs are stored in organized way in a central server where authorized persons can use
the data whenever needed rather than using individual memory. PLM gives the best collaboration
facility within internal and external global supply chain partners. Every task is determined by
collaborating with different departments through time and action calendars and workflow can co-
ordinate with all parties' activity to launch the product within a shorter time-to-market.
Operational, planning, and business management report of PLM helps people to manage and
work more efficiently.

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Production Planning and Control
ERP Production-Planning-Control Module provides capabilities for planning, execution, and
quality and plant maintenance. Production Plan in ERP is determined based on Resource
Planning, Sales and Operation Planning and Demand of the Product. Having determined the
information, ERP generates Master Production Schedule. Following are few screenshots from
ERP, which helps identify the resources for MPS. Brief flow chart of ERP, Production Planning
and Control algorithm is also given below for your ready reference.
Inventory Management and Orders:
Efficient inventory management should be able to rapidly respond to customer requirements; at
the same time should be flexible enough to undertake any corrections when required, and do the
so without adversely affecting operational efficiencies. The ERP Inventory Management module
offers effective features to minimize warehousing costs and to optimize storage needs in line
with the requirements at hand. Inventory management within the ERP system provides a high
degree of flexibility for handling complex storage needs, and assures continuous update of
warehouse inventory through multiple inventory methods and different types of auditing. All
materials input and output transactions are fully automated due to the seamless integration with
other associated modules within the system. This also enables efficient, prompt and trouble-free
inventory transactions within enterprises.

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Materials:
Production Planning Software - Materials is a comprehensive and user-friendly system covering
all areas related to Materials management. The Materials system of the following modules
Inventory Control:
» Enter all stores transaction on-line
» Track all material by Batch No./Lot No.
» Generate stock ledgers instantly
» Value inventory based on several methods
» Create various analysis reports (ABC, XYZ,
FSN, and VED)
Quality Control :
» Define comprehensive Quality Control
specification for each item
» Access GRNs awaiting Q.C. on-line
» Access Test Intimations from Production
» Generate Q.C. register for items/batches to
be analyzed and print Sampling Slips
» Update test results on-line and match with
standards to approve or reject material
» Print Test Certificates
Engineering:
» Define Units and Conversion Rules
» Define items and their detailed properties
» Define Bill of material for each product
Finished Goods Inventory :
» Enter all stores transactions on-line
» Track stocks Batch wise with manufacturing
and expiry date details
» Print Stock Statements and Stock Ledgers
instantly with ultra-fast processing engine
» Print Excise Bond Stock Statement
Material Requirement Planning :
» Define Production Plan
» Carry out BOM explosion for the plan and
generate Materials requirements
» Generate MRP on any interval and create
Purchase requisitions based on MRP Plan
» Purchase
» Define Payment Terms and Standard
Purchase Terms
» Define Sales Tax Rules, Customs & Excise
Rules for each item (as applicable)
» Create Vendor-Item Catalog
» Send Request for Quotation to vendors
» Enter quotation received and perform
comparative analysis
» Approve quotation for purchases
» Create P.O. on-line based requisitions
Distribution Planning :
» Define each Product and its complete details
such as Pack Size, Weight etc.
» Group products by Product Groups for
planning , reporting and analysis
» Group marketing areas by Zone, Regions and
Territories
» Define Depot wise Sales Forecast
» Create Depot Distribution Plans based on
Sales Forecast and Inventories held
» Create Depot Dispatch Schedules from
Distribution Plan and Production Plan
Sales:
» Maintain finished products price lists
» Comprehensive Pricing Model provides you
» Define state wise Sales Tax , Trade
Discounts, Retailer’s Margins
» Automatically calculate Net Trade Prices and
Assessable Rates (for Excise)
Depot Inventory :
» Record F.G. receipt by Depots
» Record Depot Sales
» Record Inter-Depot Transfers
» Generate Depot wise Stock Statement and
various other reports including Depot wise
Sales, Product wise Sales, Region wise

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» Define Free Quantities under Schemes
» Create state wise price lists for various states
for items with uniform M.R.P
» Maintain extensive Customer’s information
» Process Request for Quotations
» Process Sales Orders
» Create Dispatch Orders from Sales Orders
» Create Dispatch Order from Depot Dispatch
Schedule
» Sales
» Print Sales Register
» Print Daily Stock & Sales Statement
» Print various other reports
» Fully integrated with A/c Receivables
Benefits of ERP in Apparel industry:
Supplier benefit Management benefit Employee benefit Customer benefit
Information in time
about material to be
provided.
Cost savings,
Improvement in
savings. Good
customer
relationships
Satisfaction working
and achieving goals
with good team
work.
Good services. Good
quality at cheaper
price.
Reduction in cycle time:
As of now, allocation of material to specific customer order is not possible with the current
system. Such allocations are useful for making deliveries as planned, as there is no possibility of
the material, which is required by one order, getting consumed for different order. In such cases
earlier order would get delayed if material were not available in the stock while production time
is spent on other order, which could have waited without causing any problem.
Cost savings:
Company losses 2% of its sales value in discounts, which are the result of surplus production,
implementing quality management system can help to bring down excess production, as
management will be assured of the quality right from the raw material itself. Supplier developer
module would be useful in proper selection of suppliers, which can focus on quality, cost and
delivery aspects of supplier.
Reduction in machinery downtime:
5 % machinery downtime is attributed to non-availability of raw material in the stores. This is
due to absence of proper planning system and due to communication delays at every place
because of information recompiling. Prompt communication coupled with effective supplier
selection module and planning system would be useful in bringing down the machinery
downtime.

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Improvement in sales:
75 % customers place repeat orders. Three factors-price, order and delivery affect orders.
Integrated system will definitely be useful on this account. Price is one of the causes of losing
customers; there is ample scope for cost reduction and therefore company can offer lower prices
and incentives to attract customers through integrated information management solution.
Customer satisfaction:
Current system is ineffective in tracking problems related to customers. The response regarding
effectiveness falls in unsatisfactory category. Capacity planning for received order also falls in
average category. Efficient capacity management system can bring down the delivery time for
execution of the order and improve customer satisfaction. This management scheme can be very
useful in maintaining better customer relations with prompt response and by knowing their past
history. Well formulated procedures for customer dialog will be useful in having better customer
relations. It takes approximately 3 days to answer any of customer’s queries. This period can be
brought down to a day, which will have very good impact on customer’s perception of the
organization.
Conclusion:
Thus, due to the globalization information Technology has become a very important asset to the
textile industry. With the development of the data management system for production and on-
line data monitoring systems on the latest machines, the textile industry will flourish with all the
glory to it.
 References:
1) https://www.google.com.bd/
2) http://www.slideshare.net/
3) http://www.fibre2fashion.com/industry-article/5/447/erp-in-apparel-industry1.asp
Etc.