IILM GSM PROJECT REPORT LILLIPUT Kidswear GROUP 6 SECTION B

Ashwin Rajaure Hari Krishna Tarun Joshi Yogesh Dhiman Shubham Goyal Varun Singh Chauhan

INTRODUCTION:
Lilliput is the leading brand in kids wear, which was established in the year 1991 by Mr. Sanjeev Narula. They offer an extensive product range of garments for infants, toddlers and juniors and also offer a wide range of kids footwear, toys, baby care products, nursery furniture and hard goods, such as strollers, walkers and cycles. In addition, they have an attractive range of kids accessories. Lilliput was incorporated on August 14, 2003 under the Companies Act, 1956, as a private limited company with the name Anand Children Wear Private Limited. A fresh certificate of incorporation dated July 15, 2006 was issued by changing the name to Lilliput Kids wear Private Limited. Lilliput is into international business which primarily consists of private label manufacturing of childrens apparel for international retailers based in the United States and Europe. Lilliput multi-channel sales strategy made them to reach consumers where they shop; they conduct their domestic sales business through the intermediary of distributors and franchisees, which operate exclusive brand outlets, and through shop-in-shops within multi-brand outlets. The exclusive brand outlets are comprised of two primary store formats: Lilliput stores, which average 1,100 square feet per location and carry apparel, footwear products and a limited range of accessories for kids; and Lilliput World stores, which average 5,600 square feet per location and carry a complete range of our kids products. Lilliput apparel and footwear products are also sold at shop-in-shops in multibrand outlets, including at Shoppers Stop, Lifestyle, Globus and Central. In addition to the shop-in-shops, they also sell their products to distributors who resell our products to local and regional specialty stores. As of August 31, 2011, their products were sold in 261 exclusive brand outlets, which included 190 Lilliput stores, 62 Lilliput World stores and nine Lilliput Bazaar stores operated by distributors and franchisees, and 541 shopin-shops in 434 multi-brand outlets throughout India. Lilliput is currently operating with six manufacturing facilities with a total installed capacity of approximately 12 million garments per annum, which are located in North and South India. Lilliput have invested in information technologies to monitor and run their business. In 2008, they implemented Dynamic NAV, an ERP program developed by Microsoft, at both the distribution centre and exclusive brand outlet levels and are in the process of implementing it across their offices and manufacturing facilities. Their ERP platform includes modules that not only automate business processes, but also provide business intelligence technologies designed to provide an integrated view of our business. They are mainly recording information relating to sales, inventories, finance, production and purchases. The ERP system is deployed through a centralized data centre located at our head office.

AWARDS AND RECOGNITION

They have received the following awards and recognitions for achieving and maintaining high standards in various aspects of our business:

Award/Recognition

Bestowed by

Year of Award 2011, 2009, 2008 2011 2009

Most Admired Kids Wear Brand Images Fashion Forum of the Year Best Performance in Kids Wear Platinum Award Childrens Fashion Images Fashion Forum Readers Digest Trusted Brand (Voted by Consumers)

Best Brand Kids wear and Toys Shoppers Stop Pinnacle Awards Best Brand in the Kids Segment Shoppers Stop Pinnacle Awards Emerging India Award SME of the Year Brand of the Year Kids Wear

2011

2010, 2009, 2008, 2007

ICICI Bank and CNBC TV18 2009 Emerging India Awards The Clothing Manufacturers 2009, 2008, Association of India Apex 2007 Awards Central Icons Award 2008 2007

Brand of the Year Kids Wear

Most Admired Kids Wear Brand Lycra Images Fashion of the Year Awards

PRODUCTION AND OPERATION:

The production process followed by Lilliput Company can be described by following flow diagram:

DESIGN DEPARTMENT: In this department they use automated machines for designing the cloth which make the design so sophisticated and attractive.

CUTTING DEPARTMENT:

In this department they use both manual and automated procedures for cutting the cloth according to the design of the cloth.

EMBROIDERY DEPARTMENT: In this department they use automated machines to make designs on the clothes. Here they feed the design in the computer and run the cloth manually through the machine where it gets designed automatically the design control is done by the systems.

STITCHING DEPARTMENT:

In this department for stitching and over locking the clothes they use sewing machine with manual force, there are more than 1000 sewing machine which are fixe with motors to reduce the stress on the workers work continuously for the whole working day.

WASHING DEPARTMENT: In this department they use big laundry machines to wash the clothes having a huge capacity.

SEAM CHECKING DEPARTMENT: In this department they verify the clothes whether they are any extra threads hanging on the clothes it is done manually by workers.

PRESSING DEPARTMENT: In this department they use manual force only but they use sophisticated tables for pressing the clothes.

PACKING AND LABELLING DEPARTMENT: In this department they use manual force but for sealing the packets they use machines for pressing the covers.

METAL DETECTING DEPARTMENT: This department motto is to make the clothes more protected from stealing as we see in big retail stores for clothes they break a metal seal and then billing is done, so in this department they use automated machines.

Lilliput was started with the objective of manufacturing world class kids wear. Today, it has a growing presence in both domestic and international market. The brand Lilliput enjoys an enviable reputation in the kids wear market of India. Lilliput continues to work towards its mission of - Growing to become an international brand in lieu of emerging as an exclusive fashion destination for kids. However, a mismatch on the operational front was a hindrance to its exponential growth. In order to meet the growing needs of the company globally and to streamline its internal business processes, Marico implemented Microsoft Dynamics NAV 4.0. This helped the company to achieve full integration of its systems along with optimizing the productivity of its employees. Lilliput was working on various systems, using individual solutions to manage both the store and company finance. However, with the growing number of stores and multiple transactions, there was a need to record various business processes in a single database. It became important for the company to shift to a robust system since top management was also not able to get critical reports like daily sales and stock figure of individual stores. Lilliput required a solution, which could provide them integrated information and could streamline processes. Solution They evaluated various ERP and business solutions available in the market; they finally chose Microsoft Dynamics NAV 4.0 because it integrated easily with their manufacturing set-up and processes. The solution was also easy to implement and customize according to specific customer requirements. Lilliput selected Microsoft Dynamics NAV and LS Retail to improve efficiency and streamline processes to meet the growth in demand and increase in operations and production. The ERP solutions were implemented by Tectura, a Microsoft Certified Partner, specializing in Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and technology solutions. Microsoft Dynamics NAV is an integrated ERP application, which focuses on all back-office activities like finance, supply chain management, manufacturing, CRM etc. On the other hand, LS Retail, an end-to-end retail solution, takes care of all the activities at the store level such as billing, inventory management (shop level), discounts and promotions. LS Retail is an add-on built on top of Microsoft Dynamics NAV and helps the customer to have online integration of data between the stores and the head office. The new solution has helped Lilliput to increase efficiency both from the customer and also the internal operations standpoint. In addition, the powerful Point-of-Sale (POS) application that takes care of the different activities at the store level and handles important aspects like billing, stock and offers.

PROCESS MANAGEMENT:

Benefits: Improves Inventory Control: Due to the huge number of stores being added to the existing chain, better inventory management and distribution was one key business need of Lilliput. The solution integrates purchase order management and item variants management with inventory management for mapping the inventory process. Extends Information Access: The solution provides access to standardized information throughout the organization to the people who need it. Access to this information ensures that all employees know exactly what needs to be done. It gives the employees a complete view of the business, from the big picture to minute details. This helps them to analyze business performance, and ensure optimum operational efficiency. Streamlines Business Processes: The solution has helped the company to streamline business processes. Employees are now able to gather information from a single secure database, which is simultaneously available for use across various departments. These simple but critical processes optimize business processes and leverage corporate knowledge within the organization.

SUPPLY CHAIN MANAGEMENT:

The above chart shows SCM and work flow in detail showing various areas of business involved. 1. First the need for a product will be identified by sales deptt the same is communicated to the marketing deptt to get their ideas and supporting information. 2. Secondly the marketing deptt takes assistance from business analyst on the project and their inputs in terms of research findings. 3. After that the analyzed data is sent back to marketing deptt for designing a business plan. 4. This plan is forwarded to BUM (business unit manager) or directors. 5. This directors/BUM takes the final decision on the project under process. 6. Once the project with proposed plan structure is approved by these directors it is sent back to analyst where they prepare and implement the manufacturing process. 7. Requirements regarding raw materials and components are further communicated to the purchasing deptt. 8. Purchasing deptt in coordination with logistics and transport deptt plan how to purchase and deliver the materials to the manufacturing plant. 9. Once orders are placed with the suppliers, they dispatch the raw materials as per said terms and conditions on due date to the manufacturing plant. 10. Associated carriers which are approved by the manufacturing unit transport the raw materials. 11. Received raw materials are stored in the warehouse and are moved as per requirements to the manufacturing area.

12. After undergoing all the requisite processes of production, finished goods are packed/labeled and sent to the warehouses in respective location. 13. Finished goods are placed in the inventories which are awaiting orders. The inventory details are updated in the computerized system. Products are ready for sale at this stage. 14. Customer orders are received through customer services. 15. These orders are also fed in the computerized system to know the demand. 16. Centralized computer system records for all transactions and all products available for sale. 17. After every order is completed, a pick list is forwarded to warehouse. 18. If the company is involved in exports a copy of ordered goods to the concerned deptt for documentation. 19. Approved documents from export deptt are sent to the warehouse. 20. Orders for replenishment are dispatched by the warehouse. 21. Carriers collect the consignment and deliver it as per terms and conditions to the customers. 22. This whole transaction gets recorded in the centralized computer system which shows further stock requirement. 23. This re-order for stock requirement is communicated to the purchase deptt which get in touch with the suppliers for raw materials

The major problem was associated with the huge amount of sales happening across India and abroad which could not be managed neither by any management of the company nor with the help of any software support available in the market to streamline the process. As we have discussed above in Process Management this problem was overcome by Microsoft Dynamics NAV (an ERP solution by Textura).