Shared Flashcard Set

Details

231 Final Exam
ISU TC 231 Comprehensive Final Part 1 - Production/Sourcing
215
Art/Design
Undergraduate 3
12/07/2011

Additional Art/Design Flashcards

 


 

Cards

Term
product standards
Definition
a set of characteristics or procedures that provide a basis for resources and production decisions.
Term
product standards
Definition
Reflect the quality level and characteristics important to the target customer.
Term
specifications
Definition
brief, written descriptions of materials, procedures, dimensions, and performance for a particular style;
Term
specifications
Definition
properties and characteristics desired for a particular product.
Term
sources of standards
Definition
international, national, industry, firm
Term
International Organization of Standardization
Definition
Comprises the national standards from 163 countries. Provides International Standards for Business, Government and Society.
Term
ISO
Definition
___certification is recognized world wide and required to sell goods internationally.
Term
American Society for Testing and Materials (ASTM)
Definition
The worlds largest source of voluntary standards for thousands of different types of products.
Term
American Association for Textile Chemists and Colorists (AATCC)
Definition
The world’s leading not-for-profit association serving textile professionals providing test method development, quality control materials, and professional networking for thousands of members in 60 countries throughout the world.
Term
Quality
Definition
------- must be built into the product from the beginning it cannot be added at the end of the construction process.
Term
Quality Standards
Definition
Reflect the overall intrinsic quality level the firm seeks to achieve.
Term
Quality Standards
Definition
Provide consistency between products and product lines
Term
Quality Standards
Definition
Bases for product development decisions, specifications development, and quality control.
Term
Quality Standards
Definition
Affect the costs, intrinsic quality, materials used, methods of production
Term
Quality Assurance
Definition
------- --------- is commitment to quality, all employees participate, based on defect prevention
Term
basic blocks
Definition
----- ------ are original pattern pieces that are kept intact and copied and manipulated to produce patterns for garment styles. They contain fitting ease, but no seam allowances
Term
pattern blocks
Definition
are developed to reflect the size and fit requirements of a firms target customer
Term
basic blocks
Definition
provide consistency among sizes for a variety of styles
Term
grading
Definition
is the process of scaling the sample size of a garment to other sizes in the range for production.
Term
grading rules
Definition
are the amount s added or subtracted from each measurement to mark changes from one size to another.
Term
Companies doing business with the European Union
Definition
are required to use European sizing charts and state in metric units any measurements included on apparel
Term
performance standards
Definition
Must meet the needs of both the customer and the firm
Term
Types of performance standards are used in product development
Definition
Standards related to the performance of materials
Term
Types of performance standards are used in product development
Definition
Standards for performance of finished product
Term
specifications
Definition
Used to communicate standards and provide control of products during production
Term
specifications
Definition
Basis for negotiation of bids and contracts between suppliers and buyers
Term
specifications
Definition
Determine acceptability of materials and finished goods
Term
specifications
Definition
Help to ensure products meet the firms quality, fit and performance standards
Term
specification libraries
Definition
are previously developed style, pattern, and measurement specifications that can be reused to save time and money
Term
Final Specs Determine
Definition
Quality, Appearance, Dimensions, Basis for product evaluation
Term
specifications
Definition
establish minimum requirements and allowed variance for acceptability of materials and material performance, procedures for production, characteristics of finished garments, size dimensions, and measurements and placement of components.
Term
open specifications
Definition
use generic terms and identify only the properties that are needed allowing for flexibility in sourcing.
Term
closed specifications
Definition
limit the product to a specific brand or vendor.
Term
overspecified
Definition
when the specified value exceeds the
lowest acceptable level or the
specification is really not needed.
Term
tolerances
Definition
the allowed variation from the specification.
Difference between the allowable minimum
and maximum on a process or finished
measurement.
Term
rigid specifications
Definition
little or no tolerance
Term
a products compliance with specifications
Definition
will determine if it is considered first quality, a second or rejected.
Term
random samples
Definition
checked to assure compliance with specifications.
Term
fit
Definition
How the garment (style) conforms to or differs from the body
Term
fit
Definition
Determined by the design team
Term
fit
Definition
Begins with the basic block but exhibits fashion elements
Term
basic block
Definition
set of pattern pieces for the simplest garment of a particular type that reflects a set of measurements and fit for the sample size
Term
types of fit:
Definition
slim, relaxed, regular
Term
balance
Definition
a garment’s physical equilibrium on the body.
Term
ease
Definition
difference between garment measurements and body measurements.
Term
positioning
Definition
placement of design lines, trims, and components.
Term
Shoulder seams, side seams, and CF & CB
Definition
divide the body in half
Term
Side seams
Definition
perpendicular to the floor
Term
Comfort/Fitting ease
Definition
built into basic block, fit standards. Impacted by body movement, fabric characteristics, style of garment, type of fit, and customer preferences
Term
Direct materials cost
Definition
Fabric, thread, trim, and findings used in garments
Term
Direct labor cost
Definition
Wages of employees who work on the product
Term
Factory costs
Definition
Indirect labor, occupancy costs, other overhead
Term
gross profit margin
Definition
Difference between cost of good sold and net sales
Term
gross profit margin
Definition
Amount available to cover general operating expenses and profit
Term
General Operation Expenses
Definition
Indirect labor—other than indirect factory labor
Term
General Operation Expenses
Definition
Management salaries
Term
General Operation Expenses
Definition
Occupancy costs for headquarters
Term
General Operation Expenses
Definition
Variable costs
Term
costing determines
Definition
Product ability
Term
costing determines
Definition
Profit potential
Term
costing determines
Definition
Justification for adoption
Term
costing determines
Definition
Justification for equipment purchases
Term
Contribution margin:
Definition
price of the product - cost of goods
Term
direct costing
Definition
Is based on variable/direct costs of the product production labor, material costs, sales commission
Term
direct costing
Definition
Makes is possible to compare the cost of producing each products and its contribution to nonvariable selling, administrative costs and profit.
Term
absorption costing
Definition
Considers all manufacturing (V/N.V) costs to be product costs.
Term
overhead application rate
Definition
applied to measurable direct labor hrs/ machine time. (overhead application = total factory overhead/ total direct labor)
Term
absorption costing
Definition
Risk of overhead inflating the direct cost
Term
absorption costing
Definition
Risk of not being accurate.
Term
Activity-Based Costing ABC
Definition
Determines cost of all activities
Term
Activity-Based Costing ABC
Definition
Overhead costs are assigned to styles and customers
Term
Activity-Based Costing ABC
Definition
Provides most realistic information of actual product costs
Term
Costing Individual Styles
Definition
Product development costs
Term
Costing Individual Styles
Definition
Validation costs
Term
Costing Individual Styles
Definition
Bill of materials (BOM)
Term
Costing Individual Styles
Definition
Breakdown: sequential list of all operations
Term
Costing Individual Styles
Definition
Production Standard for each operation
Term
Costing Individual Styles
Definition
Start up costs
Term
Costing Individual Styles
Definition
Make up costs
Term
Product Development Costs
Definition
Include all the activities needed to prepare a new product for the line
Term
Product Development Costs
Definition
Pattern development
Term
Product Development Costs
Definition
Refining style and fit
Term
Product Development Costs
Definition
Grading
Term
Product Development Costs
Definition
Selecting and sourcing materials
Term
Product Development Costs
Definition
Establishing assembly methods
Term
Product Development Costs
Definition
Determining stitch and seam types
Term
Product Development Costs
Definition
Determining placement of zippers, snaps, labels
Term
Validation Costs
Definition
Will vary by style
Term
Validation Costs
Definition
Checking fit and garment measurements
Term
Validation Costs
Definition
Checking each set of graded patterns to verify seam alignment and notch placement
Term
Validation Costs
Definition
Costing
Term
Validation Costs
Definition
Specification development
Term
Validation Costs
Definition
Data entry for bill of materials
Term
Validation Costs
Definition
Verifying new style number and the line in computer system
Term
Validation Costs
Definition
Customer approval of artwork
Term
Material Costing
Definition
the largest part of product costs
Term
Material Costing
Definition
Begins with the Bill of Materials
Term
bill of materials
Definition
list of all the materials and quantities of each used in one of one style.
Term
Material Costing
Definition
Based on sample development
Term
Material Costing
Definition
Based on sample
Term
Material Costing
Definition
Specific products to be used
Term
Material Costing
Definition
# of units required
Term
Material Costing
Definition
$ per unit
Term
Material Costing
Definition
Waste
Term
Material Costing
Definition
$ per garment
Term
Bill of Materials
Definition
Item description
Term
Bill of Materials
Definition
Content/color/Finish
Term
Bill of Materials
Definition
Placement
Term
Bill of Materials
Definition
Width/weight/size
Term
Bill of Materials
Definition
Supplier
Term
Bill of Materials
Definition
quantity
Term
standard labor costs
Definition
Compensation for producing the firm’s product line
Term
standard labor costs
Definition
Base rate: $ compensation for one hour of work
Term
standard labor costs
Definition
Plant efficiency: volume of production relative to # of work hours
Term
standard labor costs
Definition
% plant efficiency x number of work hours x weighted average base rate
Term
labor intensity
Definition
-complexity of a design
-materials used
-amount of change in product
-degree of specialization required
Term
Factors Affecting Direct Labor Costs
Definition
Labor Intensity of a product
Term
Factors Affecting Direct Labor Costs
Definition
Desired quality level
Term
Factors Affecting Direct Labor Costs
Definition
Automated vs. non automated operations
Term
Factors Affecting Direct Labor Costs
Definition
Set up time needed
Term
Factors Affecting Direct Labor Costs
Definition
Quantity (volume) produced
Term
Factors Affecting Direct Labor Costs
Definition
Response time required
Term
total direct labor cost
Definition
# of operators x hours per week x weeks per year x average hourly earnings
Term
direct labor costs
Definition
standard labor cost + excess labor costs
Term
excess labor costs
Definition
compensation for time spent on the job but not producing a product
Term
budgeting
Definition
Total Direct Labor cost, direct labor costs, excess labor costs
Term
Production costs
Definition
increase as volume decreases.
Term
break even point
Definition
when revenue from sales equals the cost of producing a specific product. Point when a style begins to turn a profit.
Term
pricing strategies
Definition
Cost-based and Demand-based
Term
cost based pricing
Definition
Determine manufacturing costs and add markup to determine wholesale price
Term
cost-plus pricing
Definition
wholesale price is determined by multiplying unit cost by some reasonable markup. (dose not account for variations at different levels of output)
Term
return on investment (ROI)
Definition
the amount earned in direct proportion to the amount invested. (target amounts usually 10 – 20% after taxes)
Term
cost based pricing
Definition
Prices based solely on costs, rather than the value customer places on product
Term
status pricing
Definition
list price may be set well above cost of production.
Term
market penetration pricing
Definition
prices are set slightly above costs to maximize sales volume.
Term
market pricing
Definition
prices are set to match competitors.
Term
Legal Restrictions on Pricing
Definition
price fixing
Term
Legal Restrictions on Pricing
Definition
price discrimination
Term
discounts
Definition
trade, quantity, seasonal, payment terms
Term
allowances
Definition
advertising, shipping, chargebacks
Term
FOB
Definition
Includes all costs: materials, labor, transport to and loading to primary carrier
Term
FOB
Definition
Loading is the point of ownership change
Term
FOB
Definition
Manufacturer takes responsibility up to the shipping point
Term
Total Landed Costs (TLC)
Definition
FOB, quota cost, agents commission (% of FOB), tariffs (based on weight and value), freight and insurance, customs clearance
Term
producer goods
Definition
products and materials that are used in the production of other goods.
Term
consumer goods
Definition
end products produced by manufacturers and distributed by retailers.
Term
mill
Definition
owns textile machinery and makes yarn and/or fabric.
Term
converters
Definition
finishers. They buy greige goods from a mill, apply finishes, dyes, and prints.
Term
fancies
Definition
made in shorter runs, more expensive to produce. Can be made to customers specifications.
Term
staple
Definition
made year round little change from year to year.
Term
primary fabric source
Definition
mills, converters, involved in making and transforming the fabric.
Term
secondary fabric sources
Definition
firms involved in resale. jobbers, brokers, wholesalers.
Term
jobbers
Definition
buy fabric from mills, converters and apparel manufacturers in small quantities.
Term
brokers
Definition
facilitate transfer of ownership from textile mill to apparel manufacturer.
Term
wholesalers
Definition
purchase a large assortment of fabrics from textile mill and sell at smaller quantities to apparel manufacturers.
Term
make-to-stock
Definition
Traditionally used for basic goods. Relates sales forecasts to inventory levels. Firm maintains a large investment in inventory of finished goods.
Term
make-to-order
Definition
Goal is to not maintain a finished goods inventory. The goal is to have zero inventory at the beginning and end of sales season.
Term
materials sourcing
Definition
Designers, buyers, merchandisers, sourcing specialists or purchasing agents may be involved in the process.
Term
materials sourcing
Definition
Include fibers, yarns, fabrics and findings.
Term
fabric certification
Definition
Is a statement of compliance with specifications.
Term
fabric certification
Definition
Includes documentation of flaws and their locations.
Term
fabric certification
Definition
Reports textile tests performed and results.
Term
fabric certification
Definition
Identifies the lab and when tests were conducted.
Term
fabric certification
Definition
Documentation of purchase order numbers, lots, markings on materials
Term
open stock
Definition
materials have shorter lead time and are usually lower priced than goods made to the apparel firm’s specifications.
Term
unique original designs
Definition
may be developed for a line. Textile print may be designed by the firms designers, purchased from a fabric design studio or free-lance designer. Print can be copy written.
Term
confined print
Definition
when a firm purchases the full production run of a textile design from a mill or converter.
Term
put up
Definition
how fabric is folded or rolled
Term
shorts
Definition
less than 40 yards in length. Often purchased by jobbers.
Term
remnants
Definition
less than 10 yards in length.
Term
over-the-counter
Definition
less than 30 yards, rolled on flat bolt. Available at fabric stores like JoAnn’s
Term
fabric is produced by
Definition
mills
Term
Greige Goods Mills
Definition
Weave massive quantities of basic fabrics and sell the raw goods to garment producers or converters
Term
Greige Goods Mills
Definition
Produce a commodity product with no differentiation
Term
Greige Goods Mills
Definition
Fabric produced for a world market
Term
fancy weaves
Definition
design produced at the same time as the fabric is woven
Term
fancy weaves
Definition
More expensive; more permanent design than applied designs; specialized looms required
Term
fancy fabrics
Definition
Differentiated products
Term
fancy fabrics
Definition
Marketed to garment manufacturers and producers of consumer goods
Term
fancy fabrics
Definition
Mills specialize in specific kinds of fabric because of the equipment specialization
Term
fancy fabrics
Definition
Sold by sales reps, swatch cards, trade shows
Term
patent defects are
Definition
visible
Term
latent defects
Definition
appear after laundry or wet processing
Term
latent defects
Definition
Shrinkage Bleeding Crocking Color fading
Term
patent defects
Definition
Shading Bowing/skewing Fabric flaws: runs, holes, slubs, broken yarns, knots Width variation
Term
fabric grading
Definition
concerned with the size or length of defects and the number of defects in the lot.
Term
fabric grading
Definition
Each system places emphasis on different aspects of defects
Term
fabric grading
Definition
Must specify the system to be used
Term
Cut-make-trim (CMT)
Definition
purchase the materials and have the production done by a contractor
Term
Full-package program (FPP)
Definition
have the contractor source materials and produce finished goods
Term
Half-package program (HPP)
Definition
purchase or provide materials and have product development and production done by a contractor
Term
shared production
Definition
generate part of the production and contract the rest
Term
wholesale
Definition
purchase the finished goods from a manufacturer
Term
option for sourcing
Definition
License the production
Term
Letter of credit
Definition
Used as a method of payment by the sourcer (buying firm) to the contractor in an international sourcing operation.
Term
Letter of credit
Definition
Outlines the purchase arrangement and the agreements between the parties.
Term
Letter of credit
Definition
The contractor can use to secure funds from the local bank to obtain working capital.
Term
Letter of credit
Definition
Provides the terms of agreement such as the purchased products, sizes, colors, delivery dates, first cost, any special processing, quality criteria, need for quality certification, documents need for entry into the U.S., purchase terms and consignee.
Term
North American Free Trade Agreement (NAFTA) included
Definition
the U.S., Canada, and Mexico
Term
Caribbean Basin
Definition
Trade Partnership Act (CBTPA)
Term
African Growth
Definition
and Opportunity Act (AGOA)
Term
Office of Textiles and Apparel (OTEXTA)
Definition
Part of the International Trade Administration of the U.S. Department of Commerce.
Term
Office of Textiles and Apparel (OTEXTA)
Definition
Provides data on U.S. imports, production, market, import production ratio and domestic market share for textile and apparel product categories.
Term
Office of Textiles and Apparel (OTEXTA)
Definition
Harmonized Tariff Schedule
Term
sourcing agent
Definition
will develop a bid package for potential contractors
Term
approved contractor
Definition
makes a pre production sample
Term
production samples
Definition
may be required by some firms
Term
in line quality auditors
Definition
will monitor styles as they are produced
Term
during agent process
Definition
An independent quality audit may take place
Term
last step in agent process
Definition
Finished goods are transported to desired country for sale.
Term
freight consolidators
Definition
are used to move containers to ocean ports and factories
Term
Quota rent or quota premium
Definition
The economic rent received by the holder of the right (or license) to import under a quota.
Term
Quota rent or quota premium
Definition
Equals the domestic price of the imported good, net of any tariff, minus the world price, times the quantity of imports.
Term
tariffs
Definition
additional taxes paid to import or export goods
Term
total landed costs
Definition
becomes the basis for determining whether to produce domestically or offshore. Rule of thumb has been if producing over 1,000 units of same style offshore is more cost effective.
Supporting users have an ad free experience!