Rowlinson knitwear learns to work out what drives profit

Running a small business can feel like more than full-time occupation. Once a company is up and running, everyday demands make it hard for managers to consider the bigger picture - what works and what doesn’t. If a process is inefficient, providing it works, it’s hard to justify, or even find, the time to implement a more profitable system. The irony is, if time is made to identify the strengths and failings, chances are many managers would free up the time they need to be more efficient.

It’s a conundrum that Rowlinson Knitwear recognised. Fighting to keep up with their growth plans, resources were being badly allocated (with the best of intentions). As a result the UK’s largest school wear manufacturer was struggling to meet demand and quality on a number of products. It was a classic case of biting off more than they could chew.

“We would jump in too quickly with products that didn’t sell or mis-calculate demand and we were regularly getting complaints.” says Production Director of Rowlinson Knitwear, Chris Rowlinson. “We didn’t realised that honing our resources at new product development instead of consolidating the product and market we already had was actually bad for business.”

To get back on track the company agreed to pilot an in-house project management scheme, called A.S.A.M. or Advanced Skills for Advanced Materials, in early 2009. This was initiated by NWtexnet.

Four of the team were taken in hand by two course leaders for three days and given instruction and tools to scrutinise all available company data in order that they could understand the weaknesses, inefficiencies and waste in the company processes.

This included discussions followed by practical and interactive exercises tailored to fit the business.

They implemented a scoring system on each product process - giving points out of ten across six criteria – such as business strategy and costing. This allowed the team to assess the merits of each product from service to delivery and make decisions about which products should or shouldn’t be taken on to the next stage.

“We were genuinely shocked at the results,” says Chris. “We had no idea that just doing these simple scoring exercises would instantly improve our buying strategy and give us a lot more clarity on a strategic level.”

Over the space of only a few days, a number of working models were refined to reduce waste. This included balance sourcing – considering if materials should be supplied domestically or offshore – and dual sourcing – which would ensure a constant alternative supply.

“We now use those technique’s every day,” says Chris. “If we’d done this sooner we wouldn’t have produced so many right-offs and we would have saved cash.”
ASAM has had an immediate effect – not on short-term profits but long-term consolidation. “It instils good disciplines and has certainly embedded itself in people here. We’ve realised that new products are a cash strain because we have to overbuy. There is more flexibility to increase production at short notice, to turn it on to meet demand. We are in a stronger position to cope with competition and when we are ready we will be able to expand our range.”

The pilot worked so successfully that it’s now being offered to business by Blackburn College.


Did you know?

Since the success of the ASAM project management scheme at Rowlinson Knitwear, NWtexnet has won funding to start new foundation degree at Blackburn College in Project Management for the technical textiles sector. The first students will be Sept 2010. There are 27 places left when this site launched.

ASAM (Advanced Skills for Advanced Materials) will offer specialist knowledge required for technical textiles, project management set in the context of technical textiles, underpinning knowledge of textiles and planning and research skills combined with a work based evaluation.

Existing employees of NW Advanced Flexible Materials (AFM) companies will be able to skill up and the new course will also benefit apprentices wishing to move into Higher Education or students wishing to move into technical textiles.

For more information on skills funding in the Textiles industry click here.

For further information on finance for business visit NWDA Finance for Business.