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Assignment 2
Garment Industry Case Study

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The Business Problem

In common with the rest of the UK textile and garment industry, IGL faced problems of increasing competition from overseas suppliers, in particular relatively low-wage Newly Industrialising Countries like Hong Kong. In response to these competitive pressures, The Special Garment Group began searching for appropriate strategies to meet the challenge. In early 1983, they hired management consultants to study the future of their contract garments business.

MIS Garment Industry Case Study

Organizational Structure
CONGLOMERATE INTERNATIONAL GARMENTS LIMITED BOARD

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PRODUCT GROUP 1

SPECIAL GARMENTS GROUP BOARD

PRODUCT GROUP 3

CHIEF EXECUTIVE

PROFIT CENTRE 1

PROFIT CENTRE n

COMMERCIAL DIRECTOR

FINANCE DIRECTOR

DP MANAGER

DP MANAGER

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SADT Diagram
Suppliers Retailers Business Objectives & Strategies Investment Proposal Project Plan

Policies & Plans

Concepts & Business Needs . Flexibility . Responsiveness

Production Control

MICS Development Project

User Training Management Info

Education & Training

DP Staff (SDC & SGG)

Hardware

MICS Application

Finance

Technology

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Investment Proposal
1. increase the proportion of high value-added merchandise 2. improve the speed of response to market changes
(to gain competitive advantage over imports)

3. improve efficiency
(including a major investment in labour-saving machinery and new computed-based control systems)

*
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Four Alternatives
Software
1. IGL write it

Hardware
upgrade current hardware

2. A software house
write it with IGL assistance

upgrade current hardware new hardware

3. A software house
model it on a general manufacturing package

4. A software house (SDC) new hardware (Computers Anonymous) adapt its MICS
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DP Managers Reservations
1. interfacing production machinery to the existing computer hardware 2. unachievable timescale for change 3. lack of suitable packages for the existing hardware *

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Implementation Plan
Stage to be completed detailed specification review specification finalised start user training start implementation target implementation date complete implementation complete installation Date mid Nov 83 mid Dec 83 Jan 84 Jan 84 Mar/Apr 84 mid Mar 84 May 84

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Implementation Events
Event
commissioned consultant consultants report .. investment proposal .. reported four alternatives . commercial director evaluates board approval . several PCs in use running Lotus v. successful ... 5-7 weeks behind schedule, partly because of problems relocating machinery Commercial Director noted five problems ... gradual improvements to MICS ... went live, but with serious performance problems, and some features not implemented .. another consultant asked to recommend to continue or abandon .
MIS Garment Industry Case Study

Date
early 83 Aug 83 Oct 83 Oct 83 Sep-Nov 83 Nov 83 early 84

Apr 84 Sep-Nov 84 Nov 84 Mar 85

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Implementation Events (cont.)

Event

- MICS will always be difficult and expensive to maintain - will always suffer performance problems - recommended to continue with MICS, but to introduce new management structures and procedures

Date

contractual problems with SDC ... Mar 85 consultant report

over-stocking and under-ordering .. 2 weeks later Release 2 of software still had problems, but would . end 85 see light at end of tunnel Commercial Director - time to pull the plug on project, resigned Data Processing manager - proposed going back to the old system

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The Role of Management

The Chief Executive
recognised that a total change of emphasis would be required to create a manufacturing environment which can respond rapidly to changes in the market.... It will involve a total cultural change.

The Commercial Director

recognised that replacing manual routines with computer systems is a difficult process. He advocated a short, sharp, once-only disruption (that) will focus management attention and generate momentum.
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The Role of Consultants

Consultants had a role in the project after the initial recommendation. IGL should have been managing the project more closely than they were, but instead, it was allowed to get into serious trouble before the Board took any action. Their action was to have the project reviewed by some other consultants.
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The Technology
major investment in new production machinery personal computers with the Lotus 1-2-3 spreadsheet MICS - integrated production control system which kept track of internal production as well as internal ordering and stock control *
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What did IGL do well?

They commissioned consultants to recommend business strategy for gaining competitive advantage They developed an investment proposal to implement the recommendations They set up a project team to evaluate options They set up a User Committee with reviews and check points *
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What did they do wrong?

they misread the markets willingness to pay for improved flexibility and responsiveness they paid too little attention to relationships with suppliers and retailers they put responsibility for a total cultural change in the hands of someone new to the company they did not capitalise on the strengths of their own DP staff they accepted an evaluation of options weighted in favour of SDC they repeatedly ignored warning bells about overly ambitious deadlines they overlooked the major technical difficulties of porting to a new platform * MIS Garment Industry Case Study