Maximising Output with Efficient Factory Layouts and Workflow Optimization

Vietnam’s garment industry is rapidly growing, with exports of textiles and garments reaching $39 billion in 2023. Despite this success, many apparel manufacturers in Vietnam still face the challenge of suboptimal factory layouts, which contribute to inefficiencies in their workflows and limit their potential output. These inefficiencies stem from poor space utilisation, outdated workflow designs, and unoptimized production lines, all of which hinder a factory’s ability to meet its full production capacity.

As the demand for faster production cycles and higher outputs increases, Vietnamese manufacturers are under pressure to enhance their operational efficiency without incurring significant investments in new technologies or infrastructure. This is where optimising factory layouts and workflows becomes crucial. By redesigning production floors and implementing efficient workflow management practices, factories can drastically improve their productivity and competitiveness in the global market.

The Challenge: Suboptimal Factory Layouts and Workflow Inefficiencies

In Vietnam, the garment industry is predominantly composed of small to medium-sized enterprises (SMEs), many of which operate in factories that were not designed with modern manufacturing requirements in mind. As a result, these factories often have disorganised floor plans, which lead to inefficiencies such as excessive movement of materials, bottlenecks in production lines, and wasted time between processes.

As the demand for faster production cycles and higher outputs increases, A common opportunity for improvement in these factories is optimizing the arrangement of workstations. By ensuring workers are positioned closer together, delays in the handover of materials or completed components can be minimized. Additionally, establishing clearer separation between production zones, such as cutting, sewing, and finishing, helps streamline processes and reduces the need for manual transportation of materials across different areas. Addressing these areas can significantly boost the overall output of a factory.

According to a report by the Vietnam Textile and Apparel Association (VITAS), inefficiencies in factory layouts can reduce production output by as much as 15-20%. In an industry where time and speed are critical, these inefficiencies translate into lost revenue and decreased competitiveness on the global stage.

“Vietnam has always aimed at self-reliance, overcoming difficulties with the spirit of optimism and perseverance.”
Pham Nhat Vuong
Founder of Vingroup

How Groyyo Consulting Can Assist

Groyyo Consulting, with its deep expertise in apparel manufacturing, can offer Vietnamese manufacturers tailored solutions to optimise factory layouts and workflows, thereby significantly increasing their output without major investments in new machinery or infrastructure. By leveraging industry best practices and a deep understanding of factory floor dynamics, Groyyo helps manufacturers achieve tangible improvements in efficiency, space utilisation, and workflow design.

1.) GPL- Layout redesign and Productivity Improvement

  • -Reduced number of operator in sewing lines, thereby reducing the labour cost
  • -Converts operator into a producer by eliminating the various unnecessary movements
  • -Reduced total 3-4 operators in each lines
  • -18% improvement in productivity

2.) Doly J Pvt Ltd-Layout Optimization & Productivity improvement

  • -Increasing the production per machine, utilizing the idle machine, reducing the number of operations per machine and hence reduced the investment in machineries and equipment
  • -Reduces the inventory level of work in process and of finished products.
  • -Reduction of lead time by 10 days from actual
  • -Efficiency improvement by 15% from the existing

3.) FEEL IT FASHION- Manufacturing Excellence

  • -Developed Standard Operating Procedures for each department and set up an improved department workflow that has helped in the inter departmental data flow
  • -Improved Process design and layout  as per the product mix and capacity study
  • -Improved Efficiency by 12% by Streamlining workflows and reduce production time
  • -Increased line capacity by 15-20% and more production space

4.) ND GEMS: Plant Start-up

  • -Reduces the capital investment by proper space utilization of material handling equipment required.
  • -Reduces set-up time involved, Increased the output per man-hour
  • -Reduced Labor Costs cost by 8%
  • -Productivity improvement by 15%

5.) Elira Home Furnishing: Manufacturing Excellence

  • -Process design improvement and layout upgradation
  • -Implementation of 5S and Kaizen for continuous development
  • -Increased productivity by 57% within a timeline of 6 months.
  • -Earned minutes per tailor per month has boosted from 6,206 mins to 10,661 mins.

Factory Layout Redesign

One of the primary areas Groyyo focuses on is factory layout redesign. An efficient factory layout is one that minimises material handling, reduces worker movement, and ensures a logical flow of operations from start to finish. Groyyo employs a systematic approach to factory layout design that includes the following steps:

  • Space Utilisation Analysis: Groyyo experts conduct a thorough audit of the factory’s existing space utilization. This involves mapping out the production floor to identify areas where space is being wasted, such as unused corners, poorly arranged workstations, or unnecessary aisles.
  • Process Flow Mapping: By creating detailed process flow maps, Groyyo identifies the movement of materials through the factory, from the arrival of raw materials to the shipment of finished goods. This allows them to pinpoint inefficiencies and suggest layout adjustments that can shorten travel distances and reduce the number of handoffs between departments.
  • Optimal Equipment Placement: Groyyo ensures that machinery and workstations are strategically placed to reduce the time workers spend moving between tasks. This also includes the appropriate positioning of storage areas for raw materials and finished products, ensuring that materials are readily accessible without causing clutter or congestion on the production floor.

According to Groyyo’s internal data, implementing a more efficient factory layout can lead to productivity increases of up to 30%. This translates to faster production cycles, reduced lead times, and a greater capacity to take on additional orders without the need for additional square footage.

Streamlined Workflow Optimization

In addition to redesigning the physical layout of a factory, Groyyo focuses on optimising the workflow to improve coordination and synchronisation between different production stages. This includes:

  • Time and Motion Studies: Groyyo consultants conduct time and motion studies to measure the time taken for each task in the production process. This helps to identify bottlenecks or tasks that are causing unnecessary delays. By refining the workflow, factories can ensure that no stage of production is left waiting for materials or components from the previous stage.
  • Balanced Production Lines: One of the key principles Groyyo applies is line balancing, which ensures that each workstation is operating at an optimal pace, with no one task outpacing the others. By balancing production lines, Groyyo can help factories avoid bottlenecks and ensure a smooth flow of materials through the entire process.
  • Lean Manufacturing Principles: Groyyo incorporates lean manufacturing principles to eliminate waste in the production process. This includes reducing the amount of time workers spend on non-value-added activities, such as walking between workstations or waiting for materials. Implementing lean principles can result in significant cost savings, increased productivity, and higher overall output.
“The Vietnamese people deeply love independence, freedom, and peace. But in the face of United States aggression, they have risen up, united as one man.”
Ho Chi Minh
Former President of Vietnam

Measurable Impact Without Major Investments

One of the key advantages of working with Groyyo Consulting is the ability to achieve significant improvements in factory output without requiring major capital investments in new technologies or infrastructure. Instead, Groyyo focuses on making the most of existing resources by optimising space, processes, and workflows.

For instance, a factory that implements Groyyo’s recommendations for layout redesign and workflow optimization can expect to see a 20-30% increase in output without the need for additional labour or machinery. This represents a significant return on investment, as manufacturers can increase their production capacity without incurring the costs associated with expanding their facilities or purchasing expensive new equipment.

Conclusion

In Vietnam’s competitive apparel manufacturing landscape, maximizing output is essential for staying ahead of the competition. By optimising factory layouts and workflows, manufacturers can significantly improve their productivity without the need for major investments. Groyyo Consulting’s expertise in space utilisation, workflow optimization, and lean manufacturing principles can help Vietnamese apparel manufacturers streamline their operations, reduce downtime, and increase output—ultimately driving greater profitability and success in the global market.

For Vietnamese manufacturers seeking to enhance their efficiency and competitiveness, partnering with Groyyo Consulting offers a proven pathway to success. By focusing on the fundamentals of factory layout and workflow design, manufacturers can unlock their full production potential and thrive in the ever-evolving apparel industry.

Divya Mohan
General Manager - International Business

Insights

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