Aster Boutique

Wear the Elegance

Submitted to:
Mujahid Hussain

Group Members:
Aimen Naz
Mahnoor Jowad
Saira Shahid
Taniya Asif

Wear the Elegance

 ASTER BOUTIQUE Wear the Elegance

Table of Contents

1. Description of Aster: ................................................................................................................................. 3

2. Selection of our product ........................................................................................................................... 3
2.1. Idea development .............................................................................................................................. 3
2.2. Product screening .............................................................................................................................. 4
2.3. Preliminary design and testing........................................................................................................... 4
2.4. Final design and productivity measurement: .................................................................................... 6
2.5. Description of resources necessary to manufacture: ........................................................................ 7
3. Competitive advantage: ............................................................................................................................ 7
3.1. Cost: ................................................................................................................................................... 8
4. Process Plan: ............................................................................................................................................. 8
4.1. Continuous Improvement: ................................................................................................................. 8
4.2. Breakthroughs:................................................................................................................................... 8
5. Supply Chain Strategy: .............................................................................................................................. 9
5.1. JIT (just in time): ................................................................................................................................. 9
6. Lean Manufacturing: ............................................................................................................................... 10
6.1. Techniques: ...................................................................................................................................... 11
6.2. Team Approach: ............................................................................................................................... 11
7. Production Capacity: ............................................................................................................................... 11
7.1. Breakeven Analysis .......................................................................................................................... 13
7.2. Formula ............................................................................................................................................ 14
8. Bibliography: ........................................................................................................................................... 15

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1. Description of Aster:

Aster is an upscale women's clothing business. Aster which means "flower" defines the business
and its essence of inclusion. Aster's clothing selections and exclusive personal style services,
which include a detailed Style Assessment, will ensure that our customers are well dressed. Aster
is a woman-owned business. It specializes in ‘’hand-woven’’ technique products, specially a
wide clothing range in women prêt wear. It also provides unstitched clothing.

It focuses on meeting the needs more than it focuses on trends. Surveys are done repeatedly to
focus on customer demands. The need of clothing is a basic need and it cannot be ignored. Aster
is trying to meet it in a way that is stylish and yet comfortable. Its standards are not easy to make.
To meet such hard standards, it has different approval techniques that focus on quality.

Clothing for stylish women

Aster will carry Ready-to-Wear (RTW) and also unstitched fabric. Its designs are exclusive and
up-to-date. We focus on current fads and fashions that are about to prevail the market. The
manufacturing of fabric is outsourced to a Faisalabad. We buy fabric from there and then sew
and it to our standards.

Getting the word out

Aster will generate awareness and sales by utilizing PR tactics and the referral networks of
personal stylists. Additionally, Aster will meet our customers where they are, focusing on how
women approach shopping by obtaining mentions and review in the top fashion publications,
travel guides and local papers.

2. Selection of our product

2.1. Idea development

Initially we started identifying our business goals and ambitions. We created information about
our balance sheet, income statement and cash flows in order to identify the prices of our inputs
versus outputs. A well-defined business plan steered our business and brought huge profits for us
in a short period of time. We first started with developing a prototype of our product, conducted
several surveys from common people and then created manufacturing and operations processes.
We decided to buy the material for our collection from Faisalabad.

The idea behind selecting a clothing business is that it is one of the basic needs and in this era it
is quite a famous need. There is a huge scope of succeeding in a clothing business. Few years
ago, vendors were less but in today’s times, it has become more competitive. Selecting

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something with such level of competition is a challenge and this challenge has made us choose
Aster.

We have different strategies that not only over comes this competition but also make it unique.
We sell it in lesser prices than the rest of the vendors but we also focus on quality. Quality is our
main concern which cannot be comprised in any case.

2.2. Product screening

The screening step is a critical part of the new product development process. Product ideas that
do not meet the organization's objectives should be rejected. Two problems that may arise during
the screening stage are the acceptance of a poor product idea, and the rejection of a viable
product idea.

As it is a crucial step we tried to focus on our objectives which are selling at lower prices and
focusing on quality.

In order to do so, we carried out break even analysis and found out that 1800000 will give us the
total dollar amount in sales that will we need to achieve in order to have zero loss and zero profit.

When analyzing this clothing business, it is the most achievable target which is why we selected
this business.

2.3. Preliminary design and testing

The preliminary design phase may also be known as conceptual design or architectural design.
During this phase, the high-level design concept is created, which will implement the complex
electronics requirements. This design concept may be expressed as functional block diagrams,
design and architecture descriptions, sketches, and/or behavioral (hardware description
language).

For this we appointed Shujat Hassan, Systems Engineer, maintained a systems perspective and
looked at complex electronics operations in accordance with the rest of the system. The
infrastructure of our outlets was designed by Osama Amir. The configuration Management
process was defined and in operation. The hardware description language and toolset was
finalized by Shujat Hassan. Our assurance engineer, Saima Khawaja evaluated the design of
complex electronics.

The objective of the design phases (preliminary and detailed) is to create a design that will
correctly and completely implement the requirements. For the preliminary phase, the main goal
is to map out how the complex electronics will perform the functions specified in the
requirements, within the constraints of the device, the defined interfaces, and the environment
the device will operate within. At this phase, the designer needs to maintain a systems

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perspective and look at the complex electronics operations in concert with the rest of the system.
Now is the time to identify inconsistencies, misunderstandings, and ambiguities.

The objective of design assurance is to verify that the design does implement all the
requirements, and that it implements nothing but the requirements. Any deviations (such as
additional functionality that may indicate a missed requirement) are fed back to the requirements
engineering process.

The main design activities for the preliminary design phase are:

1. Create the high-level design description.

2. Identify major components, including third-party IP modules or cores.
3. Any derived requirements that result from the process are fed back to the requirements
engineering process
4. Any omissions or errors are resolved
5. Include reliability, maintenance, and test features that are necessary to meet performance
and quality requirements, and to ensure that testing can be performed to verify the
requirements.
6. Identify constraints on other system elements that are a result of this high-level design.

This assurance process for complex electronics assumes that complex electronics requirements
have been developed assessed, and base lined (formalized). In reality, these requirements may be
included in a higher-level assembly requirements specification, such as a circuit board or sub-
system. The requirements for complex electronics are likely to be a work in progress, as design
decisions in other areas of the system influence the functions the CE device will perform.
Requirements management will be an important process throughout the design, implementation,
and test phases.

Entrance Criteria:

The following criteria should be met prior to beginning the development and assurance of the
complex electronics preliminary (architectural) design.

 The complex electronics requirements should be complete and base lined. In reality, the
requirements must be sufficiently complete to allow the design to be started.
 The Configuration Management process is defined and in operation.
 The Assurance process is defined and operational. The assurance engineers responsible
for the complex electronics have been identified.
 The hardware description language (HDL) and toolset have been selected. HDL coding
guidelines for the project are complete.
 Design guidelines are specified.

Exit Criteria:

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At the end of the preliminary design phase, the following criteria should be met:

 Requirements for complex electronics are complete, with only limited exceptions.
 The top level design architecture is approved.
 A preliminary design document has been created
 Behavioral simulation has been performed (if required)
 Models and test benches required as inputs to the Detailed Design phase (e.g.,
synthesizable RTL models) are generated.

Roles and Responsibilities:

The table below describes typical activities during the Preliminary Design Phase for both
engineers and assurance personnel.

Preliminary Design Phase

Role Typical Activities
Systems Ensure that design decisions at the sub-system level (including the
Engineer complex electronics) are consistent with the overall system design.
Manage the interfaces between the various system elements. Ensure
that the sub-system designs will be verifiable. Start system integration
planning.
Electronics Assess the complex electronics architecture for compatibility with
Designer interfacing electronics. Plan for integration of the complex electronics
with supporting electronics. Ensure the CE is testable in-circuit.
CE Create the architectural design for the complex electronics. Create the
specialist test bench to evaluate the design. Perform behavioral simulations.
(optional) Work with the systems engineer to resolve interface issues.
System If the complex electronics is safety related, review the architectural
Safety design for proper implementation of safety features. Ensure that the
CE does not create any new hazards.
CE/Quality Assess the complex electronics design against the requirements.
Assurance Perform other analyses required by the CE classification. Ensure that
the documented design process is in place and is followed by the
design team.

2.4. Final design and productivity measurement:

Measuring the productivity of product development is complex and multi-faceted task, and it is
different from manufacturing operations. We divided our company into departments according to

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the roles they perform for the company. The functional departments provide expertise for our
stitching purposes. Our management authorizes investments in order to earn revenues and
profits. It is absolutely critical to measure the ability to consistently and systematically execute
the projects. We measured the results of improvement by monitoring aggregate increases in
output, productivity and quality. This helped us in measuring the optimization of the system as a
whole which was fairly high.

2.5. Description of resources necessary to manufacture:

We buy cloth from Faisalabad. We have outsourced the printing machine for latest and
innovative designs. We deal with three categories of cloth that include: Embroided and prêt.

3. Competitive advantage:
Competitive advantages are conditions that allow a company or country to produce a good or
service at a lower price or in a more desirable fashion for customers. These conditions allow the
productive entity to generate more sales or superior margins than its competition. Competitive
advantages are attributed to a variety of factors, including cost structure, brand name and quality
of product offerings, distribution network intellectual property and customer support.

Competitive advantages provide an edge over rivals and an ability to generate greater value for a
firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is
for competitors to neutralize the advantage. The two main types of competitive advantages are
comparative advantage and differential advantage.

Comparative advantage is generated by a firm's ability to produce a good or service at a lower

cost than its competitors. This gives the firm the ability sell its goods or services at a lower price
than its competition or to generate a larger margin on sales. Rational consumers will choose the
cheaper of any two perfect substitutes offered. If the effects of comparative advantage are
partially offset by imperfect substitution, higher margins for the lowest-cost producers will
eventually benefit shareholders through superior returns or provide the company with more
resources for marketing, research and development or administrative infrastructure
improvements to support future growth.

Comparative advantage can be derived from economies of scale, more efficient internal systems,
and location in geographies with low labor or low property expenses. These do not always imply
the company can produce a better product or service, but rather they can offer a product or
service for a lower price. In the context of international trade economics, comparative
advantages are determined by opportunity cost, and any part has a comparative advantage at

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something. Amazon.com Inc. is an example of a company focused on building and maintaining

comparative advantage. The e-commerce platform, its vendor relationship and its shipping
network provide a level of scale and efficiency that is difficult for retail competitors to replicate.
Amazon has risen to prominence largely through price competition.

3.1. Cost:
For Aster, we are focusing on low cost and high quality. This competitive advantage is the most
important and not anyone can achieve it. Mostly, business try to make focus on high
advertisement cist and lavish point of selling. We are cutting cost on these variables and focusing
on simple options for advertisements and point of sale. Our boutique it simple yet classy which is
not an additional burden on the variable cost of our dresses.

4. Process Plan:
The process of manufacturing will be outsourced to a factory in Faisalabad. Our
process will consist of batch production. There will be a batch of cloths in a specific color and
print and then the next batch. As our clothes will include the following categories:

 embroided
 prêt (ready-made)

The batch process is useful as we will be ordering bulks of same prints.

4.1. Continuous Improvement:

Our production team will make sure that the batch contains all the fresh pieces. Furthermore, we
will be sending our external affair manager to the factory to ensure that there is no problem in the
production process.

4.2. Breakthroughs:

Breakthrough is a significant or sudden advancement, development, achievement, or increase, as

in scientific knowledge or diplomacy that removes a barrier to progress. There have been a
number of breakthroughs in the market because of its dynamic environment. However we have
also faced a number of breakthroughs during the wedding season or increase in demand for
casual wear. For example in changing seasons. We are producing embroided dresses which
includes gowns, maxi's, lehnga's etc.

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5. Supply Chain Strategy:

We will be focusing on the effectiveness of the product, cost and forecasting any future
expenses. Secondly moving down the chain our primary aim would be to minimize the cost of
production. Thirdly, we will be focusing on JIT (just in time) method of delivery. We have hired
the best transporting company which will be making timely deliveries to our city store. Lastly, as
the customers make our brand likewise they can notarize it as well. So, we will be satisfying our
customer needs.

5.1. JIT (just in time):

Just-in-time (JIT) is an inventory strategy companies employ to increase efficiency and decrease
waste by receiving goods only as they are needed in the production process, thereby reducing
inventory costs. However, JIT is just a management philosophy and not a technique. We will be
getting on time deliveries which will in turn have a positive effect on the completion of the
dresses that are being made. Furthermore, it is a very crucial stage in the delivery process of a
product. Elements of JIT include continuous improvement and elimination of waste.

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Continuous Improvement includes:

 Attacking fundamental problems - anything that does not add value to the product.
 Devising systems to identify problems.
 Striving for simplicity - simpler systems may be easier to understand, easier to manage
and less likely to go wrong.
 A product oriented layout - produces less time spent moving of materials and parts.
 Quality control at source - each worker is responsible for the quality of their own
output.

Elimination of waste includes:

 Good housekeeping - workplace cleanliness and organization.

 Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch
size is 1item. Multi-process handling - a multi-skilled workforce has greater
productivity, flexibility and job satisfaction.
 Leveled / mixed production - to smooth the flow of products through the factory.
 Kanbans - simple tools to `pull' products and components through the process.
 Judoka (Autorotation) - providing machines with the autonomous capability to use
judgment, so workers can do more useful things than standing watching them work.
 Andon (trouble lights) - to signal problems to initiate corrective action.

6. Lean Manufacturing:

It is a systematic method for the elimination

of waste with in the manufacturing system.
Companies that employ this strategy must
employ workers with multiple skill sets to
assume different roles as needed, and must
develop a process that produces a high
percentage of goods that passes quality
control on the first pass. By maximizing
efficiency, companies who use lean
manufacturing plan to reduce costs and
make themselves more competitive in the
market.

These systems stress the process' ability to make modifications to their product quickly and
adapt to changes in the volume of goods produced. There are several factors affecting the lean
manufacturing the product.

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 waste of the product

 over production waste
 waste of waiting
 non-value added processing
 late transportation
 un-used employee creativity

We will be focusing on all of these factors by carefully analyzing the problem and solving it. Our
bulk production will be avoiding the waste of the product. Secondly, we have ordered a certain
amount of cloth printing which will prevent over production.

6.1. Techniques:

Through the use of these techniques we will be able to eliminate the waste that is produced
during the manufacturing process. We can also adopt different strategies to avoid the waste and
to reduce the cost that are being incurred due to the wastage. Furthermore, we can improve the
quality of cloths continuously. Through lean manufacturing we will be able to accomplish the
goals of producing more material with lesser waste and low costs. Reduced costs will be
favorable for us as the prices will be kept low and the customers will be satisfied from the price
component.

6.2. Team Approach:

We will be forming teams of 4-5 persons who will be reporting monthly to the teams in the head
office. The field teams will be visiting the factory and other suppliers of beads, tassels, patches,
laces etc. They will also be making reports of market surveys and needs that are to be catered.
The team in the head office will be submitting the data to the required departments. The teams
will be communicating through PDA's, internet, instant messaging and weekly formal or
informal meetings. Through the team building strategy we will be developing sense and
motivation in our employees. They will have a monthly target to achieve and a different one
every month because of our dynamic fashion environment.

7. Production Capacity:
In manufacturing of clothes, “Production capacity” is one of the most important criteria used for
seller selection by the buyers because the production time of an order is directly proportional to
seller’s production capacity.

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Capacity of a facility is primarily expressed in terms of total machines factory have. Secondly,
how much pieces the factory produces on daily for the specific products? In general, total
numbers of machines in a factory mostly remains same for a period. But factory may produce
various types of product during the season. According to the product (style) category, machine
requirement may change and daily average production in each style may vary. So to be specific
during booking orders, planner should know exactly how much capacity he or she needed to
procure the order in a given time period.

A facility’s capacity is presented in total minutes or hours or in pieces (production per day). The
method used to calculate capacity has been explained in the following. To calculate Daily
production capacity (in pieces) one needs following information.

1. Factory capacity in hours

2. Product SAM
3. Line efficiency (Average)

1. Calculation of factory capacity (in hours):,

Total number of machines = 150

Shift hours per day = 10 hours
so, total factory capacity (in hours) = 150*10 hours = 1500 hours

2. Calculation of Product Standard minutes (SAM): This facility produces shirts. Its SAM is
45 minutes.

3. Factory Average Efficiency: Average line efficiency is 50%.

Calculation of production capacity (in pieces): Production capacity (in pieces) = (Capacity in
hours*60/product SAM)*line efficiency

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This facility has 6 sewing lines and each line has 25 machines. Total 150 machines and working
shift is 10 hours per day. Total factory capacity per day is 1500 hours (150 machines * 10 hours).
SAM 45 minutes and used all 150 machines daily production capacity at 50%

= (1500*60/45)*50% Pieces
= (1500*60*50) / (45*100) Pieces
= 1000 Pieces

Production (capacity) planning is normally done based on sewing capacity. As it is the volume of
products or services that can be produced by an enterprise using current resources.

7.1. Breakeven Analysis

The Break-Even-Point (BEP) value helps the clothing industry in planning the number of
assembly lines required to produce the particular number of units in required time and also
helps in maintaining proper style distributions for each assembly line and machines in order to
reach the deadlines while earning profits.

Textile and clothing industry is among the few industries contributing highest commercial
contribution to the countries' economic growth with major supply base for global apparel brands.

The apparel industry plays a pivotal role as a key driver of the national economy and has grown
to be the most significant contributor to the country's economy over nearly three decades of its
existence.

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7.2. Formula

The break-even point formula is calculated by dividing the total fixed costs of production by the
price per unit less the variable costs to produce the product.

Assumed data:

Total fixed costs: 300,000

Variable costs per unit: 2500

Sale price per unit: 3000

Desired profits: 200000

Calculation: 300000/3000-2500= 600 units

Breakeven point in Rupees:

600*3000=1,800,000

1800000 will give us the total dollar amount in sales that will we need to achieve in order to have
zero loss and zero profit.

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8. Bibliography:

1. Investopedia. (2014, April 22). Competitive Advantage. Retrieved November 16, 2016, from
Investopedia: http://www.investopedia.com/terms/c/competitive_advantage.asp

2. Nick Johns, (1993) "Productivity Management through Design and Operation: A Case Study",
International Journal of Contemporary Hospitality Management, Vol. 5 Iss: 2.

3. Mind Tools. (2014, May 2). Lean Manufacturing. Retrieved November 2015, 2016, from
Mind Tools: https://www.mindtools.com/pages/article/newSTR_44.htm

4. Wikipedia. (2005, July 04). Just-in-time manufacturing. Retrieved November 25, 2016, from
Wikipedia: https://en.wikipedia.org/wiki/Just-in-time_manufacturing

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