Operations Excellence in Apparel Logistics: This presentation looks at what operational excellence is and the benefits of being excellent in all aspects of apparel logistics operations.

1. THE APPAREL LOGISTICS GROUP, LTD
OPERATIONS EXCELLENCE
October 2014

2. AGENDA
2
• Definition of Operations Excellence
• Principles of Operations Excellence
• Achievement of Operations Excellence
• Benefits of Operations Excellence
• Questions & Answers

3. Sustainable
profitable
growth
World class operating systems
and procedures
Margin target
Performance based cultureThe best people
The right customers and
suppliers
To create common world class operating
systems and procedures, facilitating
sustainable, profitable growth
To create a performance based culture
managed by a measurement structure
that will enable continuous improvement
To create a development program that provides
opportunity for our associates and attracts the
people that we need for the future
To become the supplier of choice to
our chosen customers and customer
of choice for our chosen suppliers
Definition of Operations Excellence
3
Operations Excellence is the application across the entire company
of principles, systems and tools that drive continuous improvement
that is sustainable in key performance metrics. Everyone “gets”it!

4. Definition of Operations Excellence
(12) focus areas encompassing the full business spectrum that go beyond the
traditional event-based model of improvement toward long-term change in the
organizational culture, whereby each associate sees the value to the customer. When
associates see it, then senior management can focus on top line growth. Ops
Excellence is not simply about cost reduction, but perpetual business growth.
4

5. 5
• Respect for all
• Lead with humility
• Pursue improvement
• Assure quality at the
source
• Flow value
Principles of Operations Excellence
• Embrace strategy & systems
• Focus on process & metrics
• Think systemically
• Create constancy &
consistency of purpose
• Create value

6. 6
Operations excellence helps to serve customers better by
blending the core principles of other “failed” toolkits:
§ LEAN: systemic thinking
§ Six Sigma: constancy / consistency
§ Total Quality Management: quality
§ Business Process Reengineering: process
§ Kaizen: flow
§ Value Engineering: value
Principles of Operations Excellence

7. 7
• Define ideal principle based behaviors for everyone
within the organization to follow
• Build commitment to those behaviors throughout the
organization on a consistent basis
• Align & reward individual behaviors to permanently
shape corporate culture
• Design systems to drive ideal behaviors
• Develop best tools to enable systems
• Ensure all associates actively deploy those tools to
achieve continuous improvement in the scope of
their daily work
Achievement of Operations Excellence

8. Achievement of Operations Excellence
8
• It requires Great Leaders / Smart Managers / Empowered
Associates who buy into the platform of Ops Excellence
• It requires anchoring the company’s mission, vision and
values on the principles of Ops Excellence
• It requires a transformed culture whereby every single
associate is engaged in the practice of Ops Excellence
• It requires an enterprise-wide practice of ideal behaviors
based upon the correct principles of Ops Excellence
• It requires the coexistence of (3) three dimensions of Ops
Excellence: principles (meaning) / systems (order) / tools
(enabler)

9. • Drives Best Practices across enterprise
• Facilitates improvement initiatives already in progress
• Delivers improvement through efficiency and effectiveness
• Efficiency is doing the thing right
• Effectiveness is doing the right thing
• Establishes a culture of continuous improvement
• Attracts talented, highly-skilled people
• Great brand and strong market position
• Financial strength for investment & acquisition
9
Benefits of Operations Excellence

10. 10
Beyond margin improvement
• Integrating sustainability into all business practices
• Ensuring long-term business continuity
• Investing in people development
• Improving risk management / Reducing risk through
controls & testing
• Achieving health and safety goals
• Becoming the employer of choice
Changing to a performance-based culture
Benefits of Operations Excellence

11. 11
Benefits of Operations Excellence

12. Q & A
12
• Examples of US Operationally Excellent
Companies: GM / Chevron / Koch
Industries
• QUESTIONS / COMMENTS – related to
the presentation
• FEEDBACK