Manufacturing and Analysis Exam 1

Research and Analysis types

Historical sales analysis

Market and consumer research

product trend identification

industry innovation

competitive comparison

social-economic climate

for reoccurring or ongoing business to maximize successful aspects and minimize poor performing aspects

Historical Sales Analysis

to identify and capitalize on market trends as well as gain a greater understanding of the consumer’s changing wants and needs

Market/Consumer Research

to find and forecast new styling, updated components or other revised quality for a specific product category

Product Trend Identification

to seek out recent technical and creative developments to utilize in new product development as appropriate

Industry Innovation

identify competition and examine all aspects of their business approach and product offering

Competitive Comparison

analyze and consider overarching current political climate, economic events and societal shifts as it relates to changes in viability of a specific product category

Social-Economic Climate

Creative and Technical design are not

mutually exclusive

Tech provides

market info and production limitations

creative provides

design wish list for pre-design research

Factors to evaluate with sourcing and costing

reliability and stability

product development support

logistics

communication

leadtime

social and environmental issues

cost

engaged in ___ merchandise generally without transformation, it is an intermediate step in the distribution of merchandise, non-consumer and supplies used in production goods

wholesalers

engaged in ____ merchandise, generally without transformation, it is the final step in the distribution of merchandise, sells merchandise to the general public

retailers

businesses engaged in the mechanical, physical or chemical transformation of materials, substances or components into new products

manufacturers

to convey the quality, performance, manufacturing origin and care to consumers so they can weigh their personal preferences and values when making purchasing decisions

why we need labels

The Federal Trade Commission protects

competition and consumers

The US law mandates that all apparel products sold in the US must contain

labels that fulfill certain requirements

Textile Fiber Products Identification Act requires

fiber content

manufacturer or importer

country of origin

US customs service term used to verify country of origin. It refers to a fundamental changed in from, appearance or nature of the manufactured goods

substantial transformation

a compilation of technical specifications and construction details created to provide manufacturers sufficient information to estimate costing and initiate protosamples

Tech packs

textile material from which garments are produced

fabric

the greatest single contribution to the cost and quality of a garment

fabric

properties of the fabric influence

aesthetics

durability

comfort

safety

cost

fabric is ____ or ____ woven from yarn

knit or woven

yarn is either

spun or filament

the physical features of a fabric are determined by

fiber content

structure of the yarn

structure of fabric

how it is dyed, printed or finished

the starting point

fiber

fibers are raw materials - 2 basic types

manufactured and natural

fibers have different characteristics that affect the

feel, texture and performance

tend to have varied dimensional stability, uneven texture, and produce a softer more textured handfeel

natural fibers

tend to have good dimensional stability, even texture, resulting in a smooth handfeel

manufactured fibers

from animal sources (wool and silk)

protein fibers

from plant sources (cotton and linen)

cellulosic fibers

all natural fibers except silk are

staples

short fibers measured in inches and centimeters

staple fibers

made from petroleum products (nylon, acrylic, polyester)

synthetics

made from plant fibers (rayon and acetate)

manufactured cellulosics

manufactured fibers are produced as _____ and can be as long as desired

filaments

filaments are measured in

yards or meters

filaments can be manufactured as either

smooth or bulked

filament fibers can also be cut into ____ to be spun into yarn that more closely resemble natural fiber yarn

staples

intended to directly affect the overall cost of imported goods

trade agreements and programs

the two major tools used by government today to discourage importing and strengthen trade barries are

tariffs and quotas

preferential agreements can eliminate or reduce duty rates to promote trade and reduce trade barriers between countries

free trade agreements and trade preference programs

tax on imports that is imposed by a government

tariffs

tariffs can be either

specific or ad valorem

____ tariffs based on predetermined monetary amount per unit

specific

meaning they are based on a percentage of the monetary value of the product being traded (in regards to tariffs)

ad valorem

the several purposes tariffs serve

raising revenue

protecting domestic industries by making foreign goods expensive

regulating trade with other countries

address unfair trade practices

The untied states international trade commission responsible for creating and maintaining the _______ ______ ______ of the United States

Harmonized Tariff Schedule

a type of trade restriction that limits the quantity of a product or commodity that can imported into a country during a given period of time

import quota

quotas are typically set as

numerical limit or percentage of the total market demand for the product

quotas are reviewed and set

annually

when a fixed quantity of a certain product is allowed to be imported from a specified country.  After the limit is reached, any goods arriving for importation are embargoed.

absolute quotas

a complete or partial prohibition of trade with a particular country

embargo

allow for a specific quantity of merchandise to be imported at a reduced rate.  When the limit is hit—the tariff (duty) rate is increased.

tariff rate quotas

_____ ______ _______ are negotiated to promote trade among member countries by eliminating or reducing tariff rates and easing government trade rules

free trade agreements

between 2 countries

bilateral free trade agreements

between a group of countries

multilateral free trade agreements

legislated by congress and allows duty-free entry of apparel into the US if the apparel is cut and assembled in a beneficiary country using US fabrics made of US yarns

Trade preference programs

The world trade organization is a forum for governments to

negotiate trade agreements

settle trade disputes

settle intellectual property disputes

The office of textiles and apparel does what

monitors textile and apparel trade policies and practices

both imports and exports

ensures compliance with international trade agreements

meeting the consumer’s expectations

quality

typically, companies has dedicated _____ _____ or _____ _____ departments

quality assurance or quality control

general guidelines established by companies to reflect and assure the final quality level of their product

standards

define exactly how a particular product will be made while adhering to company standards

specifications

the importance of setting standards

consistency

safety

compliance

efficiency

customer satisfaction

Quality standards ensure that textile products meet a consistent level of quality regardless of manufacturer or C/O. This helps to maintain the reputation of the manufacturer and build trust with customers.

consistency

Textile products that do not meet quality standards can pose a safety risk to consumers. Standards can help to ensure that products meet safety requirements and are free from harmful chemicals or other hazards.

safety

Many countries have regulations and standards that must be met for textile products to be sold in their markets. Setting quality standards helps manufacturers comply with these regulations and avoid penalties or other legal issues.

compliance

Standards can help to streamline production processes and reduce waste and save time by identifying and eliminating defects or production problems early in the process.

efficiency

Consistently meeting high (or expected) quality standards can lead to increased customer satisfaction and loyalty.

customer satisfaction

the importance of precise specifications

communication

product uniformity

reduced leadtimes

cost effectiveness

Language and cultural differences increase chances for misunderstandings. Well-crafted specs contribute to clear communication and prevent production failures or delays

communication

Precise specifications ensure that production is consistent in quality and appearance, regardless of when or where they are produced. This helps to maintain the reputation of the brand and build trust with consumers

product uniformity

With precise specifications, manufacturers can streamline their production processes and reduce waste by eliminating errors and mistakes.

reduced leadtimes

Precise specifications help to reduce material waste, rework, and other costs associated with production errors and delivery delays

cost effectitveness

the difference between the allowable minimum and maximum of a specification or standard

tolerance

allowable tolerances establish the

limits within which the product can vary but still be of acceptable quality

the ensure quality - yarn, fabric, trim and finished product are tested at various stages of production

testing

determine or confirm that the appropriate quality, composition and construction is maintained

ensure compliance with federal requirements

the primary purposes for testing

there are 2 levels of testing

mandatory and supplemental

there are 4 major categories for mandatory testing

fiber labeling, care labeling, flammability, and hazardous chemicals

define the maximum number of defective product allowed within a sample lot of inspected goods

acceptable quality levels (AQLs)

These are defects that render the product unsafe or unusable and can cause harm to the user.

critical defects

defects that affect appearance, function, or performance and could result in customer dissatisfaction

major defects

the industry standard is ___ AQL for major defects

2.5

These are defects that do not affect the function or performance but detract for the appearance or quality.

minor defects

the industry norm is ___ AQL for minor defects

4.0

an agreement that sets expectations for transfer of ownership and/or payment, terms of trade that identify the division of costs and risks between the buyer and seller when shipping internationally.

incoterms

the agreed upon unit price paid to the seller from the buyer for production of an item. 

first cost

range of additional costs involved with importing the item into the US

buying agent fees, freight, duty, import fees, domestic transportation charges

this is a commission paid to the Agency or Buying Office that facilitated the purchase and oversaw the production process on the buyer’s behalf.  They typically range from 4-8% of First Cost.

buying agent fees

either boat or air shipment.  It should be noted that in addition to air shipment adding significantly to the Landed Cost, there are negative environmental impacts

freight

These are payment for the tariffs set by the U.S. government and are different for every product category that is imported

duty

a range of miscellaneous fees relating to documentation and handling of goods during clearance through U.S. Customs

import fees

Cost for movement of shipment to buyers required destination.

domestic transportation charges

Freight rates fluctuate and are fully dependent on the type of carrier and size of shipment

estimated landed cost

In order to make a final decision about factory selection you must estimate the ____ ____ based on the ____ ____

landed cost based on the first cost

Unit First Cost

  + Agent Commission

  + Duty

  + Est. Freight

  + Misc. Fees

  Unit Estimated Landed Cost (ELC)

calculation in estimated landed cost