Gnanavinthan Thavanayagam, SAD Senanayake, T Mathiventhan, and S Anusooya
Application of Critical Path Method for Improving the Lead-time of
Merchandising in Apparel Supply Chain
Gnanavinthan Thavanayagam1, S A D Senanayake2, T Mathiventhan3 and S Anusooya4
Department of Industrial Engineering, IDT Clothing (Pvt) Ltd, Mumbai, India1
vinthant@yahoo.com1
Department of Management Studies, The Open University of Sri Lanka2
sasen@ou.ac.lk2
The Eastern University of Sri Lanka3
tmathiventhan@esn.ac.lk3
The University of Auckland, Auckland, New Zealand4
Anusooya.Ssivam@plantandfood.co.nz4
Corresponding author: vinthant@yahoo.com
Abstract
The main emblematic issues are being faced by Sri Lankan apparel supply
chain are longer lead-time, distance from the raw material suppliers and customers,
smaller order quantity and eventually, failure in achieving the planned startup date,
all of which now force to improve the supply chain efficiency in order to be
competitive in the global market. The objective of this study is to analyze
merchandising activities in Sri Lankan apparel supply chain with the application of
Critical Path Method (CPM) and find out the critical path of merchandising
processes, which influences the production startup time significantly; subsequently,
crushing the merchandising activities to minimize the lead-time taken from order
confirmation to planned start date.
In this research, both quantitative and qualitative approaches were
undertaken, and variables measured by using interval and ordinal scales. The data
collection strategy consists of observations, in-depth interviews, records of past
administrative reports and critical incidents. Consequently, the lead-time of three
independent variables, such as fabric sourcing, trim sourcing and sample approval
processes were analyzed to find out which variable significantly influences the
dependent variable of production startup date by using a network analysis of Critical
Path Method. Further, statistical software, Minitab also used to find out the critical
path of the merchandising activities.
Through nearly more than eight years of experiential analysis and three years
of empirical data analysis, the most critical merchandising process, which influences
The 2010 International Conference on Innovation and Management, Penang, Malaysia, July 7- 10, 2010. p.
25-26
Gnanavinthan Thavanayagam, SAD Senanayake, T Mathiventhan, and S Anusooya
the production startup date, has been found. The results shows that though all three
processes such as fabric sourcing, trim sourcing and sample approval processes
considerably influence the total lead-time between order conformation and
production startup date, the most critical merchandising process influences the
production startup date is, sample approval process.Consequently, this lead-time has
been crushed from 80 days to 58 days by using the time/cost trade-off analysis.
Hence, provides quick turnaround time to customers and reduce the cost of
production, thus enables the organization to be competitive in the global market.
Further, this research provides valuable information and unprejudiced
recommendation for senior managers to develop their own supply chain strategies in
the apparel industry in order to gain the competitive advantage in the international
market. Keywords: Supply chain, merchandising, critical path method, apparel
manufacturing, leadtime.
Keywords: Supply chain, merchandising, critical path method, apparel manufacturing,
leadtime.
The 2010 International Conference on Innovation and Management, Penang, Malaysia, July 7- 10, 2010. p.
25-26
