newsletter JAN 2014
Facilitation and Project Management Cluster facilitation services are provided by Benchmarking & Manufacturing Analysts SA (Pty) Ltd (B&M Anaylsts, an organisation that provides high value specialised support services to drive sustainable industrial development. Over the past 15 years B&M Analysts have developed methodologies and skill sets that allow them to play a unique role in relation to supporting the competitiveness of value chains and the growth of industrial sectors. These services are tailored to support the industrial development goals of government organisations, private sector organisations, and public-private partnerships (PPP). B&M Analysts is a verified Level 2 B-BBEE contributor under the Codes of Good Practice for Broad-Based Black Economic Empowerment (B-BBEE). For more infomation on B&M Analysts please visit www.bmanalysts.com
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Introduction to the CCTC The Cape Clothing and Textile Cluster (hereafter the CCTC) was launched in 2005 in response to the considerable pressure the industry was facing as a result of trade liberalization and increased global competition. The aim of the cluster is to assist clothing and textile firms to bolster their competitiveness. The Cluster operates as a Not-for-profit Company (NPC), governed by an executive committee and numerous Technical Steering Committees (TSCs). The service provider of the cluster is Benchmarking and Manufacturing Analysts (BMA), who are responsible for the management and facilitation of the cluster. BMA is also the service provider to the CCTC’s sister cluster, the KwaZulu-Natal Clothing and Textile Cluster (KZN CTC). The activities of these clusters are synergised and therefore enable a national development strategy to be executed for enhanced competitiveness of the clothing and textile industry in South Africa. With support from five of South Africa’s largest retailers, the Cluster has been able to establish and entrench programmes designed to assist local firms’ development by accumulating economies of scale through group activities and shared resources.
The benefits of clustering include: • • • • • •
The generation of a critical mass of resources Shared learning The rapid diffusion of ideas Collective action and risk sharing Reduced costs Enhanced ability to compete on a global platform
CONTENTS 5. Announcements 6.
19.
Focus Article – Team Responsibility and Competitiveness Evaluation (TRACE) Upcoming Events
- Benchmarks
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TRACE
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Quick Response Training
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Best Practice Study Tour to KZN
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CMT Development Programme
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WCM Workshop Series
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Preferential Procurement Workshop
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CTCIP Peer Group Session
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Looking Ahead
25.
Industry News
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SACTWU Calls On Department to Buy Local
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Wetherlys Adds Hertex to Fabric Partnership
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Union to Buy Apparel Business
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Aussie +Size Clothing Store Opens in Sandton
Announcements Hello & Goodbye December 2013 saw the departure of Cobus De Hart, a highly valued member of the CCTC management team who most members will know from any of the myriad of events which he planned, ran or supported. Cobus leaves us to complete his PhD and will be taking up a position at an economic forecasting and consulting firm in Paarl. We wish him all the best in his future endeavours. Cobus’s departure ushers in two new members to the team. Sean Kirby who has worked for B&M Analysts in Durban for many years has relocated to the Cape Town Office to accommodate his studies toward a PhD at UCT and act as an additional resource for the CCTC team as well as the companies research unit. Zara Christie also joins the team as an intern whilst she works on her Masters Dissertation at UCT. Zara’s research will focus on education and development within the clothing and textiles sector of the Western Cape and will no doubt add great value to the work of the Cluster.
Focus Article – Team Responsibility and Competitiveness Evaluation (TRACE) TRACE is a skills development programme run by B&M Analysts. Due to the increased importance of the role of the team leader in the manufacturing environment, World Class Manufacturing (WCM) concepts can and should be successfully introduced and implemented at this fundamental level. The TRACE skills programme provides both the theory and practical application of fundamental WCM principles. This is complemented by leadership and management training in order to support a holistic and comprehensive skills upgrading programme. It is an NQF level 3 course providing 49 credits and is registered with the MerSeta. The TRACE skills programme has two core goals: The first being to skill learners to better understand the concepts and basic implementation of WCM principles in the workplace. The second is to ensure that these skills translate directly into the organisation’s operational competitiveness and efficiency improvements.
The 8 modules in the skills programme: listed below: • • • • • • • •
Lean Continuous Improvement (CI) and Problem Solving 5S Communication & Visual Performance Management (VPM) Total Quality Management (TQM) Total Productive Maintenance (TPM) Project Management Leadership
The TRACE skills programme has a learning cycle consisting of 5 elements: • • • • •
Theory Practical application – during normal work hours Assignments – demonstrated practical application of the theory Assessment & coaching – weekly one-on-one contact time Knowledge tests
The team leader is central to creating a culture of World Class Manufacturing. To enable the effective application of TRACE-acquired skills there are several requirements and issues that require clarity in order to prepare for the implementation of the TRACE skills programme. Basic logistical arrangements require clarity regarding: • Classroom environment • Scheduled class days and times Questions regarding the role of the learner within the organisation: • Is this clear to management, the learner and the team members? • Is this clear to the trainer? Clarity is required for the area within the factory and team that the team leader is responsible for with respect to: • Application of assignments • Visual management boards • Assessments during and post implementation Support from management at all levels is required for: • Reinforcement of importance • Skills application / assignment support (real and motivational!) • Application of new skills in day to day business operations
Exploring the TRACE skills programme module content provides more insight into the value of the course and how each concept interlinks with the others. One module is no more important than another as to achieve the full benefit each section works in synergy with the others in order to achieve WCM. 1. Lean The objective of this module is to demonstrate an understanding of seven wastes which undermine lean manufacturing. The learning areas are: • ‘Overproduction’ waste • ‘Waiting time’ waste • ‘Transport’ waste • ‘Processing’ waste • ‘Inventory’ waste • ‘Quality’ waste • ‘Motion’ waste The seven wastes are: • Overproduction • Waiting • Transport • Processing • Inventory • Motion • Correction/Defect
There are two assignments required for this module. The first is about the team leader creating awareness and providing training regarding the seven wastes. The assessor may randomly ask team members about the seven wastes to confirm the team leader understands the training provided. The second assignment is about identifying and rectifying areas where each type of waste is occurring. 2. Problem Solving The objective of this module is to assist learners to improve team performance by: • Identifying variations in performance • Undertaking root cause analysis • Developing and undertaking corrective actions • Reporting on quality and other problems in the work area The learning areas identified for this section are: • Improvement ideas • Define – Measure – Analyse – Improve – Control (DMAIC) • Five ‘whys’ • Fishbone diagram There is one assignment for this section which consists of undertaking the DMAIC process. Team leaders are also provided with a detailed plan and template sheets for handling improvement ideas.
This includes: • • • • •
Improvement idea form Team review of ideas Feedback on ideas Implementation of approved ideas Recognition of best ideas
3. 5S The objective of this module is to understand, explain and apply the concept of 5S in the workplace. The concept of 5S is: • • • • •
Sort Straighten Shine Standardise Sustain
The learning areas for this section are: • The importance of 5S to World Class Manufacturing • Understand the stages of 5S There are two assignments for this module that consist of practically applying 5S in the workplace and training team members regarding the concept as well as auditing the workplace regarding the elements of 5S. 4. Communication The objective of this module is for team leaders to communicate effectively through both verbal and visual mediums. The learning areas for this section are: • Functions of communication • Barriers and direction of communication • Communication skills • Visual performance management The team leaders are shown how to develop a ‘Team Information Board’ and have three detailed assignments for this module.
5.
Total Quality Management (TQM)
The objective of this module is to understand and apply TQM in the workplace. The learning areas for this section are: • TQM approach to quality • Process stability & control • Quality measurement and visual performance management (VPM) • Quality interventions Traditional approach to quality
TQM approach to quality
There are four assignments for this module. Tasks include reviewing of work instructions, reviewing the reject measurement system, reviewing visual performance management and the reviewing of 5S all using tools provided in his section.
6.
Total Productivity Maintenance (TPM)
The objective of this module is to understand and apply TPM in the workplace. The learning areas consist of: • Introducing TPM • Autonomous maintenance • Planned maintenance The 8 pillars of TPM
This module has five assignments. Tasks consist of teaching team members about TPM and the steps involved in each learning area. Each learning area is delved into quite deeply to cover all aspects of TPM.
7. Project Management The objective of this module is for the team leader to demonstrate an ability to define, plan, monitor, control and deliver in relation to a project such that agreed benefits are realised. The learning areas for this section are: • Planning • Organising • Leading • Controlling This module has four assignments with each one relating to one of the four learning areas. 8. Leadership The objective for this module is to understand, explain and display leadership skills in the relevant environment. The learning areas for this module consist of: • What is leadership? • Trust and leadership • Team based leadership • Making leadership practical This section has three assignments which cover health and safety regulations, understanding and working within an organisation and noting what motivates team members.
Next Level Impact The team leader is central to creating a culture of World Class Manufacturing and Continuous Improvement. It must be asked: • How can leadership skills and the leadership role be entrenched? • How can team leaders be empowered to apply newly acquired skills? • What organisational changes need to be made to sustain enhanced performance at a team level? The enabling criteria for this are: • Strategy – strong strategic organisational frameworks. • Leadership – strong senior level management leadership and support. • Integration – Integrate TRACE outcomes into standard operational and reporting practices. • Empower – empower team leaders and teams to operate with appropriate levels of autonomy. • Sustain – sustain culture of ‘Continuous Improvement’ and elevated organisational performance. Overall the TRACE skills programme provides comprehensive training with regards to World Class Manufacturing and provides skills to workers that can be applied in any area of the organisation. Increased competitiveness and efficiency gains can therefore be more readily achieved
Upcoming Events January 2014 This year the Cluster gets off to a running start with numerous activities in January, February and March. Details of selected activities are included below. Benchmarks Freudenberg Nonwovens was the first firm to be benchmarked in 2014 ensuring the programme gets a start early in the year. A new member, Impahla Clothing, also undertook their first ever benchmark this month. We trust that both firms, seasoned and new, found this to be a value-adding exercise. TRACE Freudenberg Nonwovens further showed their commitment to World Class Manufacturing by starting the year at full speed with the first TRACE programme for 2014. This will be the 4th group that Freudenberg is putting through the training programme and is testament to the value our member firms derive from participating in the programme. TRACE stands for Team Responsibility and Competitiveness Evaluation and is a unique training course offered by the CCTC focussing on the essentials of leadership, management and World Class Manufacturing for Supervisors and mid-level management. TRACE is MERSETA
accredited and awards successful graduates an NQF level 3 qualification making it the only course of its kind in South Africa. Rock ‘n Roll Clothing in Observatory will see their first group of learners start TRACE towards the end of January. We are confident that they will extract huge benefit from this undertaking. If you would like to know more about TRACE or enquire about participating in one of the courses, please contact Roslynn Manuel at roslynn.manuel@bmanalysts.com or (021) 552 0240 QR Training The Cluster will run its first QR Training course for the year on 30 January, 13 and 20 February. The course is the only one of its kind in South Africa, introducing participants to the theory and practical challenges of implementing a Quick Response operating model in both manufacturing and retail environments. Participants are required to attend all three days of the training and are given the option of completing three assignments which count towards a competency certificate in Quick Response. Ordinarily, participation is reserved for Cluster members only, however on this occasion it is being made available to nonmembers at the highly discounted rate of R1 999. 00 + vat. CCTC members attend the training for FREE.
If you are interested in participating in the course, please contact the Cluster on cctc@bmanalysts.com or (021) 552 0240 February 2014 Best Practice Study Tour to KZN The very popular Best Practice Study Tour to KwaZulu-Natal will be taking place from the 19th – 21st February 2014. The three day tour provides our members the opportunity to visit some of the Province’s best clothing, footwear and textile manufacturers, providing a rare and valuable learning opportunity for member’s in all stages of the lean journey. Apart from flights, all costs are covered by the Cluster. Space is limited to 15 participants so please contact us as soon as possible if you would like to attend. Enquiries and reservations can be made with Sean Kirby at sean.kirby@bmanalysts.com or (021) 552 0240. CMT Development Programme 2014 sees the launch of a new CMT development programme which will replace the existing SME programme. Owing to the huge success of the SME Development programme, the executive committee has decided to allocate more funds towards an enhanced programme focussed on supporting the development of small CMTs which provide the invaluable flexibility and responsiveness required by
the local industry. February will see the start of two months of selection and assessment of participants with the programme kicking off in April. Four phases are envisaged, including: WCM & Measurement, Skills Development, HR & Financial Management and finally, marketing. Each phase will be two-fold including both introductory workshops and on-site expert support. If you would like to participate in the programme or have a strategic supplier who you feel would benefit from being involved, please do not hesitate to contact Stephen Wright at stephen.wright@bmanalysts.com or on (021) 552 0240 WCM Workshop Series The annual World Class Manufacturing Workshop Series kicks off in February with the Executive Session. The workshop series is broken down into three sessions aimed at executives, management and supervisors respectively with one workshop in each of the months of February, March and April. The workshop series aims to be an introduction to WCM for those who are new to the concepts as well as a refresher to those who are already familiar with them. Keep an eye on the website for further information and feel free to contact Stephen Wright should you have specific questions. Stephen.wright@bmanalysts. com (021) 552 0240
March Benchmarks The Cluster plans to benchmark the following four firms in March: - Peter Blond - PepClo - African Nature Company - Berg River Textiles (Special Training) WCM Workshop Series March will see the second session of the WCM Workshop Series, this time focussed on Management. The management session tends to go into more detail than the Executive Session focussing by drilling deeper into the theory and specifics of WCM. Preferential Procurement Workshop Based on the outcomes of the workshop held late last year, the need for a more practical workshop focussing on the details of the application process as well as the opportunity for industry to interact directly with the relevant government officials and decision makers was identified. Such a workshop is now being planned for March and interested parties should keep an eye on the CCTC website for further updates on this event.
CTCIP Peer Group Session The first of the highly effective 2014 knowledge sharing ‘Peer Group Sessions’ of the CTCIP will take place in March with the host being Falke Eurosocks. These are closed sessions reserved for participants of the CTCIP and consist of detailed factory tours and guided knowledge sharing workshops which focus on refined aspects of Lean or World Class Manufacturing. If you would like to find out more information or enquire about joining the CTCIP, please contact Stephen Wright at Stephen.wright@bmanalysts.com or (021) 552 0240 Looking Ahead April - AGM - Strategy Session - Exco Meeting - K-Way Benchmark - CMT Development Programme Launch May - Benchmarks: Waltex, ELtex, Bri-Clo - CMT Development ramp up - Carbon Footprint and auditing workshop - CTCIP Best Practice Study Tour - CTCIP Peer Group Session (PepClo)
Industry News SACTWU Calls On Department to Buy Local On 13 October 2013, a national Sunday newspaper carried an article alledging that the Gauteng Provincial Department of Health had imported clothing and textile products for its hospitals. This was in serious contravention of the government procurement regulations – an innovative national employment creation policy – which requires that clothing and textile products (amongst others) bought by government must be manufactured locally. In that article, the SA Clothing and Textile Workers’ Union (SACTWU) noted the existence of an imminent larger tender for clothing and textile products, which closes on 8 November 2013, and which is apparently worth around R180m. In order to ensure that the Gauteng Department of Health procures these goods locally and in order to ensure that no supplier hoodwinks the Department into importing more of these goods, SACTWU calls on the Department to invite the Department of Trade and Industry (dti) to participate in the bid adjudication process. We believe the dti has the requisite knowledge of the industry to guide adjudication in the correct manner, and to ensure that the job creation, industrialisation, social and health multipliers of this tender are maximized. This tender should and can do much to support the local textile and clothing manufacturing industry, and workers within the industry, if the Department adheres to the regulations and ensures that all of these products are locally
made. However if the Provincial Department imports these goods again, not only will it be breaking the law and undermining the job creation efforts of National Government, but it will also compound the crises of unemployment and poverty in South Africa. Ironically this will exacerbate poverty-related diseases experienced by clothing and textile workers, their families and working class communities in general, and it will further strain national healthcare i nfrastructure who will turn to clinics and hospitals for support.” Date: 5 November 2013 Source: SACTWU Written By: Andre Kriel Wetherlys Adds Hertex to Fabric Partnership Collaboration aims to broaden offerings and ensure a curated selection for customers. Joining other fabric houses to ensure a curated selection is available for its customers, fabric supplier Hertex is now in collaboration with Wetherlys to broaden its offerings of an assortment of checks, chenille’s, damasks, geometrics, jacquards, felt, florals, plaids, stripes and solid textures to create fabulous furniture and great accent pillows. “This collaboration is another prime example of how the company is able to maintain its reputation as acknowledged trendsetter in the industry,” says Karen Ingram, marketing executive of Wetherlys.
The latest collection can be seen in two easily colour-coordinated books in-store. Date: 9 January 2014 Source: BizCommunity Written By: BizCommunity Union to Buy Apparel Business Seardel‚ the industrial holding group controlled by investment group Hosken Consolidated Investments (HCI)‚ will cast off its loss-making clothing manufacture operations. In an intriguing twist‚ Seardel has disclosed that the buyer of the threadbare clothing operations is trade union investment company Sactwu Investment Group‚ which is aligned to the Southern African Clothing and Textile Workers Union (Sactwu). Vunani Securities small-to-mid-cap analyst Anthony Clark said on it was ironic that Sactwu was now buying one of the biggest apparel manufacturing concerns in the country. The union’s staunch protection of workers’ rights had led to major job losses and the curtailing of new investment in the sector. “Let’s see if they have the stomach to make those difficult decisions when losses at the Seardel clothing manufacturing operations mount up‚“ Clark said. While some observers doubt that Sactwu can pull Seardel’s clothing operations back into the black‚ the union does have a hedge in that it remains a major
shareholder in HCI. If a new-look Seardel - 80% controlled by HCI and now with high-growth media assets‚ including cash-generative e.tv - benefits from a more profitable focus‚ then Sactwu will also gain. Clothing was Seardel’s backbone The clothing manufacturing operations Sactwu bought formed the backbone of Seardel’s business for decades. There is now not much value accorded to Seardel’s clothing operations‚ which carry a book value of R51m and an inventory count of R131m. Sactwu‚ which will fund the transaction with a loan from Seardel‚ will pay just R77m for the business in April next year after accounting for R105m in retrenchment costs and continuing losses. Recent results from Seardel make plain the challenge faced by Sactwu‚ which might have to resort to serious down-sizing and restructuring. In the year to March this year‚ turnover in the clothing operations - which manufacture well-known brands like Speedo‚ Brooksfield and 46664 - dipped 19% to R695m as Seardel restructured operations to eliminate lower-margin products. This improved efficiency saw operating losses cut from R101m last year to a R34m. At that stage‚ Seardel’s chief executive Stuart Queen warned that despite the improvement‚ continuing losses in any business were unsustainable. Seardel is due to release its interim results at the end of November. Although a recent trading statement lacked detail about the company’s
business segments‚ it seems likely that further losses have been notched up by the clothing operations and that directors have finally run out of patience. This week Seardel directors confirmed a decision had been taken earlier to exit the apparel manufacturing business. But they pointed out that the subsequent sale agreement with Sactwu was cemented after notice was given of the proposed closures. The directors said the deal was driven by the need to protect local manufacturing and save jobs. Ryan Seaborne‚ a portfolio manager at 36one Capital‚ said it was prudent for Seardel to shed uncompetitive assets. “The clothing manufacturing interests are really a small part of the new-look Seardel.” Date: 1 November 2013 Source: BizCommunity Written By: Marc Hasenfuss
Aussie +Size Clothing Store Opens in Sandton The leading Australian plus size clothing brand, City Chic, has opened its first store in South Africa in Sandton City, with brand ambassador Anele. The label pioneered the shift to fashionable, stylish, plus size clothing, giving customers the latest looks and styles, perfectly tailored to enhance their curves. The Speciality Fashion Group acquired the brand in 2006 and quickly grew the label in Australia from seven to 79 stores in four years. Today it has 90 stores in Australia, branches in New Zealand and has rapidly expanded its international online shopping offering. With these achievements, it is set to be as big a success in the South African market. Embracing vibrant colour, with some prints exclusive to the brand, the South African consumer can look forward to a trendy selection of designs. These include a range of exquisite lingerie in sizes that are usually not catered to in South Africa and a specially crafted ‘Booty’ cut jean, designed specifically for the local market. The group is currently securing key locations in other regions in order to widen the reach of the brand to the South African consumer. “We’re excited to launch in South Africa,” says Phil Ryan, GM for the brand. “It offers South African woman an original experience, as we know there is a gap in
the market for fashionable, sexy designs for the plus size market, with no real competitors vying for this space as yet. Additionally, market research shows that there are many South African women looking to flaunt their curves in chic fashion items that are inspired by the latest runway looks.” “The brand is all about fashion. It gives our customers the same looks as their slimmer sisters’ wear, but these looks are subtly modified to suit a fuller figure. We realise that fuller figured gals have great décolletage, cleavage and booty, and our collections show off these assets to great advantage.” Booty range There are several collections, with evocative names such as Miss Mod and Graphic Jungle, that ensure the range caters for every occasion - from everyday curvy street and fashion wear to work wear, evening dresses, striking accessories and lingerie engineered by master lingerie expert Jonathan Yeomans to give a perfect fit and great support. Every woman needs a perfect fitting pair of jeans in their wardrobe and there is a reason why the jeans range is called ‘TDF’ (To Die For). The jeans are designed for fuller figured girls. Baggy and shapeless is gone and gorgeous curves in plus size skinny leg and bootleg jeans are here to stay. According to Courtney Maxwell, designer for the jeans collection and the current
face of City Chic, “We discovered, via focus groups, that our customers come in four body shapes: Apple, Pear, Column and Hourglass.” The jeans are made in quality sateen denim that has great fabric retention, so they do not ‘grow’. They feel ultra-soft, are comfortable to wear and are available in a dark wash with a clean silhouette creating a slimming effect. The shopping experience is a personal one. Fuller figured women often find shopping to be depressing because they feel that no one caters for them and makes them feel good. This is where the well-trained staff at City Chic come in. The staff have been put through a rigorous but motivating four weeks of training to gain a thorough understanding of how to best dress a plus size figure. The results of this training are evident in the many tears of joy that have been shed in its changing rooms around the world. Women find curves they never thought they had, through lingerie and supportive clothing made from top quality fabric and tailored to flaunt their very best features. Suddenly shopping is fun again and a morning at the shop results in a gorgeous confident woman leaving the store feeling ready to celebrate her curves. For more information, go to www.citychic.co.za. Date: 22 October 2013 Source: BizCommunity Written By: BizCommunity
newsletter JAN 2014