nms

Are We Focusing on Wages Increment and Efficiency Improvement Equally

The economy of Bangladesh is moving forward with the help of different industrial contributions. Ready Made Garments (RMG) is one of the core contributor where our garments business is growing because of lower labor cost and other operational cost. In Bangladesh, RMG sector creating millions of people’s employment over the year. Although labor is cheap here but government time to time change the worker’s salary structure to ensure right wage payment. So that labor unrest can be avoided. This article is all about whether are we focusing on wages increment and efficiency improvement equally or not?

Wages is the amount of remuneration a worker get for his/her service. This is actually the monetary value of service. Efficiency defined as ‘’The comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (Men, Machine, Raw Materials etc.)’’In 1936 payment wages act was established under which it is necessary to have defined wages & min wages for any kind of services. In 1958, the first wages board was set up by East Pakistan Government under the Minimum Wages Act of 1957. Then ordinance of minimum wages act was published in 1961. Before liberation war in 1969, a commission was set up which lead by Air Vice Marshall Nur Khan, fixed minimum wage of 115 Taka. After liberation war in 1971, public & private sector minimum wages fixed by different commissions & considering related factors. Periodically in 1973, 1977, 1985, 1991, 1998, 2005 public sector min wages fixed by government. At first, the minimum wages board prepared a draft wage scale for 38 private sectors in 2001 & was finalized in 2004 keeping RMG sector in dark.

Are We Focusing on Wages Increment and Efficiency Improvement Equally

Are we focusing on wages Increment and Efficiency Improvement Equally

In 2006, Bangladesh Institute of Labor Studies (BILS) & Bangladesh Garments Manufacturers and Exporters Association (BGMEA) combinedly demanded a minimum wage for the RMG sector as gazette act from the government. For the first time, a wage structure for RMG workers was published keeping 7 grading positions. Minimum monthly wages of 7th grade was determined as 1662.50 Tk. Trainee worker was supposed to get an allowance of 1200 taka/month. The main purpose of adopting national minimum wages is to support the weak labors (mainly unskilled, female, physically challenged) who cannot stand for their basic rights. In 2010, minimum wages became 3000 Taka for a month. After that in 2013, new wage gazette was published. The 7th-grade worker got a minimum wage of 5300 Tk. In 2018 gazette it became fixed with 8000 takas with 51% maximum increment. A correction of recent salary structure published as gazette recently. Below some statistical data of salary increment in Garments sector:

Gross Salary Increment Amount and Percent of Bangladeshi Workers

Gross Salary Increment Amount and Percent of Bangladeshi Workers

Most of the garments factories of Bangladesh runs with low efficiency. Productivity & efficiency is not increasing in accordance with salary increment. Recently Skills for Employment Investment Program (SEIP) starts with the help of finance ministry of Bangladesh. Likewise, there should be training & development program from government, organization & buyer. Some reputed foreign buyer already starts their efficiency improvements program in respective factories. The average efficiency of RMG sector of Bangladesh is nearly 50% which is lower than competitors. Walmart, H&M, Levi’s etc. buyer successfully running their efficiency improvement programs in the factories. Along with these, individual factory improvements program is necessary. Hope our garments sector will focus on parallel improvement of efficiency along with wages increment.

Written by

Sharmin Akther Diba

Industrial & Production Engineer

Rajshahi University of Engineering & Technology

Email: [email protected]

LinkedIn: Sharmin Akther Diba

Major Economic Contributions of RMG Sector in Bangladesh

RMG sector is one of the important sectors which has so many contributions to the economic development of Bangladesh. In this article, some major economic contribution of RMG sector is described. It will be helpful to know the condition, impact, ways of development, future scopes of RMG sector in our country for economic development. Over the years we found that Major Economic Contributions of RMG Sector in Bangladesh economy.

Major Economic Contributions of RMG Sector in Bangladesh

Major Economic Contributions of RMG Sector in Bangladesh

Spinning and Knitting/Weaving

With increasing garments sector spinning, weaving, knitting, dyeing & chemical sectors adding value in economy. PTS (Primary Textile Sector) is the backbone of garments sector, which produces yarn & fabric. This sector has the opportunity of various diversification of yarn production. According to Bangladesh Textile Mills Association(BTMA), Now there are 425 yarn mills, 796 fabric mills & 240 dyeing-printing-finishing mills. Investment in PTS over six billion dollars. Textile sector contributes more than 13% in GDP. Almost 86% export earning comes from textile & textile related products. 90% yarn demand for knit RMG & 35-40% for woven RMG are fulfilled by PTS. There are mainly four types of spinning mills we have. They are ring spinning, ring spinning with open end capacity, rotor/ open end, synthetic yarn mills. In overall scenario, 87 lakh spindles, 2.3 lakh rotor, production capacity 205 core kg (Approx. data).

Bangladesh in well known for its well quality knit goods with lowest price. While spinning sector growth reaches 77% to 99% within 1986 to 2002, knitting sector catches the market with its various kinds, Dias or combined fabrics. Actual production capacity in weaving increased from 190 million meters in 1996 to 830 million meters in 2000. Dyeing finishing capacity also increased from 366 million meters to 680 million meters within this time. Weaving mills producing woven (561 mills), denim (21 mills) & home textiles (18 mills). Here looms-17000 shuttles less and 13000 shuttles, production capacity 215 core meters (Approx. data). There is power loom & hand loom sector also. In power loom sector share, lungi, gauche also produced. There are 1065 no. of units & capacity 40 core meter & around 43000 people earn their livelihood by this sector. In hand loom sector Jamdani & Banarosi types luxurious share are produced. Around 183512 small to large units exists, capacity 837 core meters, around 5.05 lacks hand looms and around 10.20 lacks people work in this sector where 50% women.

Textile and Garments

Garments sector growth has a positive impact on widen the co-relative sectors. At starting we needed to import fabrics, trims, chemicals, accessories etc. from abroad. With vast growth of RMG sector, we have our own knitting sector, yarn sector, chemical sector, accessories sector and so on. According to Bangladesh Bank report on RMG, the rate of value addition stood at 74.86% in the fiscal year 2013-2014 & the highest was 75.67% in 2014-2015. Now the knitting sector added value more than wove sector. According to the RMG sector, people value addition rate of knitting sector is 90% while for woven it is 55%. Once upon a time, we were fully dependent on imported denim fabric, in current scenario 50% of the fabric locally produced.  The average value addition from the Denim sector is around 70%. During an interview with The Daily Sun, Bangladesh Textile Mills Association (BTMA) director Mohammad Khorshed Alam told they have a capacity to meet around 98% of demand for fabrics & around 55% of woven fabrics for the export-oriented industry. BTMA director also added that by setting 28 denim textile mills it improved significant progress in denim fabric. Bangladesh Garments Accessories & Packaging Manufacturers and Exporters Association (BGAPMEA) president Abdul Kader Khan admit that local industry now meets up 95% of the requirements of exporters. The industry also adds 30% value addition to its products.

Banking & Insurance

RMG growth has a positive impact on the growth of financial sector in Bangladesh. With the help of letter of credits(L/C) both garments & textile sectors flourishes. Banking sectors facilitates payments, deeds, finance & risk management services to the RMG traders while contributing to global trade integration. The success story of RMG began with the launched of the back to back L/C practice in late 1970’s. Desh Garments Ltd. Initiated this first. More than 10 million people are indirectly associated with this industry. According to Bangladesh Bank data, import price of raw materials stood at 3716 M $ during the first half of fiscal year 2018, which is around 25% of total RMG export value. Thus, the gross value addition from this sector stood around 75%. The major importing countries of RMG products are the US, UK, Germany, France, Italy, Spain, Belgium, Denmark & Canada. In recent, the export financing business of the commercial banks is largely dependent on the textile and RMG sectors. A study conducted by the world bank found that about 98% organization looks for working capital from commercial bank and 57% of their financing of machineries and equipment’s.

RMG sector also has an immense contribution to Insurance services. On average, every year the RMG sector premium paid to the insurance companies was about 6 million dollars. All firms insured their machines and plants and, 87% of importers of input and 15% of the RMG exporters insured their imports/exports. The health insurance policy reduced the absenteeism of the RMG sector. By analyzing a study, Syed Abdul Hamid, director of the Institute of Health Economics of Dhaka University, said that the insurance companies believe that workers tend to seek more healthcare adding that many of the workers want to take maximum benefits, worth about 15000 takas against their premium of 575 Taka. That study also found that owners of the factories wished to increase 50% of the premium contribution while beneficiaries showed willing to contribute up to 50%. 

Shipping and Logistics

In accordance with growing garments sector shipping & logistics sector become an important part of economy. Setting up large warehouse facilities, distribution channels, supply chain forum, shipping, logistics become business trends as RMG is export oriented. RMG sector earn more than 40% of the income of the port authority. For shipping charges there includes documentation fee, inbound manifest correction fee(CMA), Container lift on or port charge, Clear/cleaning charge & security deposit. The contribution of RMG sector for shipping is logistics is mainly for international shipping and logistics where different duty, commission, tax, insurance, freight charge are paid.

Transport & Communication

Along with tremendous improvement of garments sector, transportation system of our country become more developed. Not only railroads, highway roads also developed & increased. Previously for export shipping system was only way. But nowadays roads & airways are equally used. From covered van to cargo services, it becomes a large portion of bridge, flyovers paying tolls as revenue. Every year a large portion of ship, airways, railroads earned vat & tax take great contribution in the economic development of our country.

RMG sector also has a great impact on communication sector. It includes ICT, tele-communication system, web system, software & hardware etc. Most of the technology oriented apparel industries are tends to use ERP, Fast-react, GSD, payroll management software etc. Some are creating by their own specialists, some are buying as customer requirements. People are interested to use social sites of communicating with foreign buyers by using skype, emails, twitter, WhatsApp, LinkedIn etc. Now even people are searching their jobs on social sites or job portals. Now-a-days foreign buying house fixing video conference to set up order taking session. In these regards RMG has great impact on ICT sector revenue earning.

Engineering & Utility

With the growth of RMG sector, engineering & utilities services starting to expand its area. In most readymade garments industry electrical engineering, mechanical engineering, electro-mechanical engineering, automation engineering or industrial engineering department play a vital role. According to a study, this sector pays 14.2 million dollars to the engineering sector which includes professional service payments; machine, transport or vehicle service or repairing, electricity or generator setup & usage bill, water treatment & WASA bill, Machine automation or semi-automation, Industrial infrastructure setup etc.

Hotel, Real Estate & Tourism

More than 1500 foreign apparel buyer’s representatives visit Bangladesh in a year. They like to stay three to five-star hotels in our country hence its increases hotel & tourism business in our country. Along with this, restaurant & hotel business become more popular. There are so many five-star hotels in Bangladesh & they have luxurious food facilities also. Foreign people staying in our country use departmental stores for their one-way window shopping. Now a days seafood, Chinese, Mexican, Italian, Japanese food courts become popular among with these people.

Real estate industry is increasing day by day in our country. More than 4560 garments in our country & they need infrastructure facilities from real estate companies. People are tending to get things done in international standards so that foreigners are interested to visit their places. Some renowned apparel industry has large & magnificent infrastructure facilities along with international standard parking system, indoor playground, swimming pool, rest room, medical center, ATM booths, dormitories etc. Hence real estate business become more popular as there is large source of income from this sector.

Other Business Sectors

Some business sector growth increased with the RMG sector. Some of them are competing with RMG, for example, the electronic sector; some are anyway linked with RMG sector, for example, accessories or footwear sector. We are tending to go along western trends nowadays. So, some local companies using a mashup of western & our culture & making outfits, footwear, bags, ornaments & so on. For example, Arong, Vasabi, Yellow, Nabila, Fossil, Cats-eye, Desire, Vittate, Estacy, Richman, Westecs, le-Reve, Artisti etc. These kinds of fashion house are tending to make fusion products like mixing western culture & our culture basically Sari, Salwar kameez, jeans, tops, shirts, t-shirts, polo shirts, Panjabi, formal suits, wrist watches, Bangs, shoes etc.

Fashion industry becomes one of the most popular business sector in Bangladesh. In accordance with RMG revolution, this sector also developed. People from our country are joining international modeling, fashion shows, ramp, beauty contest etc. There are so many private television channels. Some of our actors started work abroad also & achieving fame. Most of these parts credit goes to RMG sector. Along with these, Cinematography, photography & its relevant product business like camera, lighting setup etc. become more popular. So, in a sense, directly or indirectly RMG sector has great positive impact on the economic development of our country.

Written by

Sharmin Akther Diba

Industrial & Production Engineer

Rajshahi University of Engineering & Technology

Email: [email protected]

LinkedIn: Sharmin Akther Diba

How to Make Yourself Prepared for Verbal Interview

How to Make Yourself Prepared for Verbal Interview

How to Make Yourself Prepared for Verbal Interview

‘Viva’ or ‘verbal interview’ is the hurdle to defense yourself, knowledge or thoughts. Sometimes it becomes so hard to overcome the total pressure of facing a verbal interview. For experienced person, it is more common to do meetings, to give presentations etc. So they are habituated with the fact & face any interview easily, whatever its job interviews or not. For fresh graduates it is the hardest part for stating their career. Tension, pressure, confusion, dilemma all things come along facing a viva. By reading this article, it will be helpful for anyone howHow to Make Yourself Prepared for Verbal Interview

I) Steps to follow After Getting an Interview Call

Basic Interview Steps to Follow

1) Research And Analysis

It may be 15 days or 7 days or a day before your interview when you received interview call. Nowadays in general, most of the company prefer to call a candidate for an interview before 2 days minimum. In some cases, it may be just a night difference between your call & attendance. Don’t be panicked. If it is from any renown company, then it is a positive side & take it as energy to face the interview. Whether it is renown or non-renown company, as you are not an employee there, you might not know company details. In modern time, it’s become easier to know any company & its profile through internet. Use search engine & visit company website. You will get some common idea about the company. It’s a good practice to search in LinkedIn about the company. May be you will find some people working there. Try to visit their profile, can get some work information, company condition. Luckily if you get someone from relevant department who you think may be your interviewer, can find some info about his/her thinking, personal approach etc. You can also search other social networking site to repeat the same.

2) Homework and Question

If you are going to face the interview which is relevant to your academic skills, you must go through the top topics before facing the interview. If it is not relevant to academic skills, you might be thinking about what should you go through. Don’t be upset, there are several tips for you. You can check the JD (job description) which is the main element to know what types of questions are waiting for you. Try to memorize the minimum three major responsibilities for this job, you may be asked to describe a short note on JD. Also, read job location, additional requirements, special qualification was required for the job. Make google search on JD, you will find some elaborate description. Read them & get confidence. It is nice if you know someone from the company or industry. Then it will easier to find the information about the interviewer. Prepare yourself for some widely asked questions, like introducing yourself, strength & weakness of yourself, your achievements, your inspirations, your mission & vision, why you are leaving previous company etc. Another important thing is expected salary. In some companies it is fixed for specific position, they will just tell you & ask if you are ready to accept their strategy. In most case they will know your demand & negotiate with you. So before interview be ready to face that part, don’t forget to tell you current remuneration relevant with your expectation when it will be asked. Sometimes after interview the last session become questionnaires session & you may be asked to ask them if you have any query. In some cases, it is the hardest part, so make yourself prepared for that part. It’s better not to ask about company vision or their loss & profit, because you are not that important person they will love to share that information’s. You may ask how this job is going to be fruitful for your long career path, what extraordinary they do for their employees, how can you built your career to reach his/her position or technically can ask whether they feel you are right for this job. These are the homework you should do.

3) Practice and Plan

You can do practice before approaching your interview. A mirror can be your best friend. Stand in front of mirror. Be the interviewer & interviewee, face the real challenge by yourself. Ask liberally, answer confidently & politely. Assume the scenario of interview board & close your eyes to get the full fell. It is best practice for a fresher. If you are getting used to face interview & still have a fear for it, then you can get help from your friends or family member to get into the process. Try to think all positive & negative aspects, think interviewer are not happy with your answer, how will you overcome the situation. Think they are satisfied with your answer, how you will react with gratitude. Think how to deal if salary negotiation or any bonding phase come & prepare yourself for that. By this time, you should plan your journey as per interview schedule. If you are supposed to attend on morning schedule, you must be earlier to reach on time because it’s office start hour. Plan which route, vehicle you want to choose. In some cases, for ladies who want to take along parents or spouse along with you, make sure it doesn’t make any disturbance for the workplace you are going for interview.

II) Steps to follow Before the Interview

1) Dress-up Etiquettes

Dress-up sense have direct impact on interview. It is necessary to choose the perfect dress for interview. In some cases, interviewee forget that he/she is not going to attend any fancy program or weeding. It is advice able by professionals to choose soft color dress. For man, he can choose white, off-white, grey, sky-blue, lower shaded blue or purple single color, vertical stripe or check full sleeve shirt. It’s better not to choose horizontal stripe as it has impact on eye vision & height. He can choose a simple & shade matching tie if wish, though it is not mandatory. Can wear blazer, coat or jacket if it is winter season. Try to avoid fancy stuffs, even wearing blazer or jacket or tie in summer. Gents can wear a wrist watch with casual model. Choose formal shoes which doesn’t sound when you walk. Sometimes you have to take off your shoes, make sure your socks are odor free & clean. For ladies, she can wear salwar kameej, saree, western wear as per company profile & her job criteria. In this case it is advice able not to wear something which is not modest, try to be classy with simple, avoid tight fitting dress. Try to choose light color dress, less makeup & accessories as well as slippers. Sometimes for height issue you may use hills but should select that which doesn’t make sound when you walk. As usually can carry a simple handbag & wear a wrist watch not so fancy. It is professional advice to avoid black color dress as it reflects proudness in some case. In both case try to avoid odor as you will have to make a journey & reach there, so can use a light smell perfume. Gents should be clean shaved & if you have beard then must be in a good shape. You can exfoliate your face before night, it is going to look yourself cheerful. You can keep tissue & a comb so that you can fix your hair anytime. Make sure you brush your teeth properly on that day & have a clean & small nails.

2) Sleep and Meal

It is necessary to have a sound sleep just before night if you have a morning scheduled interview. If you have an after lunch schedule you can take a nap of thirty minutes before two or three hours of interview. It will help you to look fresh. Don’t let your tension to look beyond your face. Have a good & healthy breakfast or lunch. Empty stomach can block the cells of your brain to work & think properly. If you are a smoker avoid smoking that day to avoid bad smell. In some companies it is restricted to hire smokers.

3) Printout and Confidence

Don’t forget to take a printout of your CV or resume. Attached a printed photograph on it, keep it in an envelope. Don’t forget to write your name, mobile no., email id, applied job etc. on the envelope. It is best practice to keep pen, pencil, scale, calculator while going for interview. You may have to face written interview. Finally, before you leave your home, can go through important topics or just recall them. Always be confident & calm. You are going to meet some new people not for a war. So don’t give yourself unnecessary pressure. To avoid tension, you can take a warm bath before being dressed up. Take a deep breath, smile & step out for your interview to be on time.

III) Steps to Follow on Arrival at Interview

1) Startup Professionally

It is a minimum professional etiquette to reach before fifteen minutes. If you have to face the security guard, then tell them about your interview, hopefully, they will be aware of the schedule. As per company security rules, you may have to document your arrival time & get a visiting card; it is good to wear visiting card rather than keeping it in your bag or pocket. Then you have to go forward to the human resource department as per their instruction. You can greet them by good morning or good afternoon, or using salam or Adab, additionally asking how are you with a bright smile.

2) Calm Waiting

It is good practice to wait calmly & professionally when you are sitting for an interview. By this time, you may get fresh & up to look yourself confident. You should make your mobile phone silent mood & obviously it is not the time to chew gum or chatting with your friends by using your mobile phone. You may take a class of water. In most case tea or water is provided. Don’t make sound while taking tea or coffee, it may bring bad impression. Sometimes you might face written interview before viva. Face confidently. Avoid cheating, using mobile phone, ask permission before using calculator, don’t side talk. When you are finished, follow their instructions. Avoid finger-boiling or gossiping with Competitors, a small introduction is acceptable. If you find business magazine or corporate brochures, you can flick through these while waiting for your turn. You can keep your CV & a pen on your hand, it helps to be confident.

3) Attend the Interview

When it’s your turn, check if you have to remove your shoes or not. Ask a polite permission before entering into the room. It may be a round table, a flat table or a circular table with full of people. Greet them & wait until they tell you to take your seat. Sitting properly is an art. Don’t rush & sit with noise. Just make a proper positioning of chair & yourself & then sit. Make sure tension are not in your forehead & try to keep a smiley face, not so, a moderate. Give your best to face the questions. If you see your CV or resume are in front of them, no need to give them your CV. If not, you can approach it. Do eye contact while making conversation. If more than three persons then while answering, try to look everyone periodically. If interviewer ask you in Bangla, you can use the same language. If they talk in English, you have to speak English. Try to migrate their attention to yourself by your answer. After completing your interview, you might thank them for giving you the chance & greet them finally. Keep the chair in right place & out of room without making any unnecessary sound.

Interview is the most important part of career. If you have a fear of facing interview, success will be a locked room for you. It will be beneficial for you if you can follow mentioned three major steps followed by nine sub-steps, it will be easier for you to overcome the fear. If you habituated with these, you will feel good any interview facing. You can also use these steps for public speaking, meetings, presentations, seminars etc. Best of luck for your upcoming interview.

Written by

Sharmin Akther Diba

Industrial & Production Engineer

Rajshahi University of Engineering & Technology

Email: [email protected]

LinkedIn: Sharmin Akther Diba

Scan and Pack System in Apparel Industry

The effect of digitalization is everywhere, in apparel industry different electronic devices are used to collect information, keep records and also use these records to increase the operational efficiency. Because of operational benefit, in garments and stores you may find that people are using it and it gives them operational advantage. In this article you will know about scan and pack system in apparel industry and what are the advantages we can get. You will also see the process of scan and packing system.

Scan and Pack System in Apparel Industry

Scan and Pack System in Apparel Industry

What is Scan and Pack System?

Scan and pack system is an Electronic Data Interchange (EDI) system, tag/sticker barcode scanning uses on Garments product SKU information and customer order details to complete the scan packing requirements for retailers.

Advantages of Scan and Pack System in Garments Manufacturing

  1. Remove packing error and keep accurate pack SKU
  2. Save time and cost, increase work efficiency
  3. Auto-generating packing list
  4. Auto-generating case label
  5. Add value to the customer

Scan and Packing Process

Main Objectives for scan and pack system is to keep packing accuracy, giving the right units of shipping carton to the customer and saving time. Every Garment will be scan by barcode scanner before packing. If any garment barcode can’t read by a scanner, GMTS will put away, marking unable to pack, for example, if there a carton of 20 pcs solid SKU, after completing the scan of every pcs, GMTS to be pack immediately. After completing 20 pcs scan, the carton will be closed. After completing every carton, scanner reset to count every GMTS for the individual carton to keep accurate solid SKU. By this way, no need to count GMTS to keep the right amount of stock keeping unit in any carton. By this way, time will save.

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

Linkedin: A.M. Amirul Islam

How to Start Your Career as a Fresh Graduate of Industrial Engineer and Textile Engineer

How to Start Your Career as Fresh Graduate of Industrial Engineer and Textile Engineer

Graduated’, we sometimes love to share it in our social networking site or celebrate the moment with friends & family. This word comes along with goal, responsibilities, career, future etc. In the applied engineering section, Industrial Engineering and Textile Engineering are two preferred departments not only for a career but also for wide acceptance. After completing graduation from Industrial & Production Engineering or Textile Engineering, fresher sometimes fall in confusion, frustration or sometimes they are trying to move any other career field which is not relevant to their academic qualification. By reading this content, hopefully, you will get some ideas of how How to Start Your Career as a Fresh Graduate of Industrial Engineer and Textile Engineer.

Approach to select a proper career for fresh Industrial Engineer & Textile Engineer
Approach to select a proper career for fresh Industrial Engineer & Textile Engineer

Initiatives from University Life

  1. From second year undergraduate students start their relevant courses. It is necessary to know full course curriculum. It’s good practice to make open discussion with seniors who are in third year or final year, to know about how to be prepared for upcoming courses or how should be inclined with study. For textile engineering undergraduates, a soft advice to know the depth & importance of choosing major at third year, as this choice mostly define their career.
  2. A final year student should focus on the importance of academic courses in his/her career. If he/she obtained an outstanding result, then can focus on continuing that with a vision to make footsteps in teaching profession or may be for BCS, government job or private job as per choices. On contrary, if anyone unable to achieve good results then they should not crave for this anymore and concentrate of what to learn. You are not getting a good score that doesn’t mean you know less. May be your choices & preferences are different. Try to think that level, don’t be frustrated. That is the golden time of your life to be prepare for future, make yourself prepared for the result of being ‘graduated’.
  3. When you pass half of the time of final year, it’s the time to find your strength, weakness, opportunities and threats (do a SWOT analysis of yourself). For example, you have good result (may be CGPA 3.75 or up) focus on that & u can easily prepared yourself for teaching profession; you have middle range CGPA and want to work for a bank or multinational company in future, focus on that; you are in low range CGPA, don’t get upset, look at your strength & opportunities. May be you are good at AutoCAD, may be you completed a course on lean manufacturing, may be you know a lot about practical implementation of courses, then why this fear! Don’t waste your time & focus on thesis/ internship/ project which will work as a ladder to reach your desired interest area
  4. You just finished your final exam, continuing your thesis/ project/ internship, now it is your time to select your career!

Career Path Selection

  1. You were so busy with your courses that didn’t get time to make a curriculum vitae or resume! If not, don’t be sad, you can make it now! Take help from google, get templates and make you own CV, may be you can get advice from your teachers or seniors. You are not competing to be a CEO, so no need to write your CV from professional CV writer. By writing your CV may be way to know yourself well & it is the first time a fresher can understand his/her strength well.
  2. You know your seniors; you are a member of your university career hunt team, try to interact with them often. You will get so many job information suited for your career. You start to open profile in several job portals. Some of favorite job portals are Bdjobs.com, Chakri.com, Jagojobs.com, CVlinked.com, Chakrir Khobor, Job Tips, Protom Alo jobs etc. Don’t forget to take a suitable photograph for your CV. Make template cover letter for yourself, it is necessary for applying some category jobs. Get yourself fully prepared.
  3. Consult yourself, your family, your seniors, your teachers or you can take help from google which type of job or career path matches your qualification. Once you set, then go for it. Apply job portal, take job circulation from seniors & apply. Oh yes, you didn’t complete your graduation yet! So what, you are ready to apply for jobs from now. If you are planning to do earlier two steps after graduation your goals are intangible yet!
  4. You can complete some small timeline professional courses, get Microsoft (Excel, Power point, Word) lessons and make yourself an attractive package that anybody would like to grab. By this time, you complete your thesis/ project/ internship. Forget your fear, remove your shyness, erase your tag whether you are from private university or public university. you know yourself, you already made your CV, did SWOT of yours, set up career goals, applied for jobs, most importantly you are graduated now. Hurrah!

Get Into Career

  1. For textile engineer or industrial engineer (who want to choose textile or garments sector) it is necessary to fix if you want to work in garments or textile or spinning. Then decide whether it is woven, knit, denim, lingerie or sweater section you want to establish your career. Then divide your thoughts into several subsections like, whether you want to work in knitting, weaving, dyeing, washing, cutting, printing, sewing, finishing, quality, logistics etc. Then draw a decision tree of several departments like Quality Management, Industrial Engineering, Planning & Co-ordination, Marketing & Merchandising, Supply Chain, Production, Operation, Procurement etc. Do analysis from job portal JD (Job description), google & take information from seniors. Match which fields suits your potential most & which you have interest. Oh yes, by this time you got interview calls, Congratulations!
  2. You know your preference area. So you are going to be ready for this competitive world. Make a self-analysis before interview, google on company which is interested in you, take a print of your CV, read JD properly, know basic question which may be interrogated or asked, have a fresh look, be on time & yes after 5 minutes it will be your call to attend the interview!
  3. Sometimes it may be 2 or 3 steps of interview for fresher. Logical analysis, departmental questionaries’ & verbal interview. Complete first two steps confidently with proper time management. When you are on verbal interview board, be confident again, be honest, be straight forward, be proper goal oriented, try to focus them towards you by your answers, hey, it’s you, an Engineer!
  4. May be you will fail; may be you will get a job offer! In first case, focus on your goal & ready to repeat the same cycle. You are experienced & more confident than before, Congratulations! In second case, you got the job offer, Congratulations! You are on the first step of unbound steps of your stair. Learn, learn & learn how to reach the tangible goals! Good luck!

Graduation will be a blessing, if you follow mentioned three steps & twelve sub-steps. In developed countries so many colleges & universities have counseling department where they help students to choose their career path. As in our country this system is not available yet, we have to make our initiatives by own. Choosing the best career can change your whole life. So, it is necessary to work for this from the early stage of university life. Anyone can continue his/her higher education such as M.Sc., MBA, PGD etc. as per choice which will add value in career. Hope Bangladesh will get her sun-child by soon who will be confident, educated, honest, leader & can compete with the people of other developed countries.

Written by

Sharmin Akther Diba

Industrial & Production Engineer

Rajshahi University of Engineering & Technology

Email: [email protected]

LinkedIn: Sharmin Akther Diba

Trade Information of RMG Sector in Bangladesh

Number of Garments of Bangladesh

Earlier Bangladesh was least developing country but in 2019 we step forward to place our footprint as a developing country and to keep this status we have to wait for another three to four years with continued economic growth. Here we will discuss about the trade information of RMG section in Bangladesh and how it is growthing over the years. In the past, our country’s economy was dependent on the agricultural activities but right now we are doing good for both the service and manufacturing industry. One of the high growth industry is the garments industry where every year new companies with the hand of entrepreneur joining in this industry. Although in 2012 to 2013 there was a decline in the number of garments industry because of the inability to meet compliance-related issues and not getting enough orders from the foreign buyers. But after 2013 we have positive growth in a number of garments industry in the total apparel basket. This is because the garments business is profitable and we can provide a highly competitive price to the international market just because we have less production cost of labor cost. The most important thing is with the increase in the number of garments industries there is also creating employment opportunities, especially for the women workers. This actually boosting our economy because women are contributing to their family income, which is ensuring a better life for the poor. From the BGMEA report a historical chart is given below:

Number of Garments of Bangladesh

Trade Information of RMG Sector in Bangladesh

Graphical View of Number of Garment Factories over the years

Number of Employment of Bangladesh Garments Industry

RMG is the biggest export-oriented industry and earns 65% foreign currency. Apparel industry not only producing garments for export purpose but also here in Bangladesh we have a huge market of large population. RMB sector is contributing a huge value to our GDP through creating employment, earning foreign currencies and also creating skilled manpower through training and development. Here in Bangladesh there are about 4 million people directly engaged with this industry activities directly on the other hand one core people of the total country are engaged with his activities. Being it is the main source of earning foreign currency and labor oriented industry for which this project development and increasing day by day. As per BGMEA report historical chart is given below:

Number of Employment of Bangladesh Garments Industry

Export Contribution of RMG in Bangladesh

In the past we used to produce garments at home or local tailors, but because of demand of Bangladeshi garments around the world, especially in European market. Entrepreneurs took the opportunity of demand of garments item in the world market. Industrial setup had been made and we are now one of the top garment’s manufacturer.  Earlier we used to export golden fiber but now apparel export is leading from the front line of export basket. Total export contribution with a significant value by the RMB sector. A historical improvement is shown below as per BGMEA report:

Impact of RMG in GDP of Bangladesh

Gross Domestic Product (GDP) monetary value increases in Bangladesh with times as well as RGM share is increasing. In RMG Sector 95% of woven & 90% of knit exports are directed to foreign trade markets. In fiscal year 1984, RMG export was 0.16% over GDP. After 10 years in 1994 it became 4.60%, after 20 years in 2004 it became 10.05% & finally in recent 2018(Nominal) RMG export % over GDP is 10.71%. So, last 35 years overall average RMG share % in GDP was 8.35 % which is incredible.

Export Contribution of RMG in Bangladesh

RMG sector passes so many ups & down, finally reaches present condition. In accordance to global changes, Bangladesh RMG sector need to improve technologically, need to modify traditional methods, enhance marketing strategy & business policy, ensuring standard safety & compliance policy, Precise costing & planning, use supply chain strategy, business process excellence technology, training & implementation, research & development, Multiskilled management systems, practicing TQM, LEAN etc. Directly or indirectly RMG sector is related to so many economical & social sectors, so it is really an important field to focus on for government. This sector has a vision with objectives to support the sustainable growth of pioneer industry of emerging economy & to create employment opportunities to strengthen macro-economic position. It is expected that Bangladesh RMG sector will reach 50 billion $ by 2021 & around 6 million workforces will be employed in this sector. Bangladesh also focused on greening RMG sector by different strategy & projects.

Impact of RMG in GDP of Bangladesh

From ancient stage to today’s modern world, from tree leaves to long gown, from body covering to fashion show, the dramatic improvement brings revolutionary changes. After 1971, Bangladesh also run fast to become one of the most influential developing country. Not only the number of rich people increases, but also garment sector reach such a level where its completing leading export countries. Hopefully despite of so many hindrance, Bangladesh garments sector will reach a leading level very soon & will be one of the top RMG export oriented country.

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba

Knitwear RMG Sector Contribution, Export and SWOT Analysis of Bangladesh

Knitwear Readymade Garments Sector of Bangladesh, Woven & Knit sector contribution, Export trade information, top buyers, manufacturing items, vision and SWOT analysis. 

Knitwear RMG Sector Contribution, Export and SWOT Analysis of Bangladesh

Over the years the apparel industry of Bangladesh is growing faster than any other industry. Bangladesh is a developing country, economy of this country is expanding year to year. Earlier the economy was dependent on the agriculture and manufacturing industry, but now the scenario has changed, new manufacturing industries emerging and our economy is booming. The growth of textile and garments industry is more obvious because of easy adaptability of technology and lower cost of human resource which is the key success factors of this industry. Apparel industry creating employment opportunities both for skilled and semiskilled workers, especially for women workers. Export earnings from RMG products are increasing and by this we are getting lots of foreign currencies. During the initial period of RMG sector woven garments dominated the export share. After that with increasing variety of in house knit fabric, gradually knit garments started being the leading garments sector.

Woven and Knit Sector Contribution

Woven and Knit Sector Contribution

Main Apparel Items Exported from Bangladesh

Main Apparel Items Exported from Bangladesh

RMG is the biggest export-oriented industry and earns 65% foreign currency. The local market of readymade garments is increasing because of an increase in per capita income and a change in consumer behavior. The RMG industry is getting more important because of creating employment, bringing foreign currency, socio-economic development which creating a positive force to the GDP of our country. Engaged about 4 million people directly with this industry activities directly on the other hand one core people of the total country are engaged with his activities. Being it is the main source of earning foreign currency and labor-oriented industry for which this project development and increasing day by day.

Although Bangladeshi RMG sector is leading by many industrialists but every year new entrepreneurs are coming forward with their innovative ideas and knowledge. This actually works as an innovating driving force to move forward successfully. Not only man but also female entrepreneurs also joined in this industry.  A woman entrepreneur established one of the oldest export-oriented garment factories, the Baisakhi Garment in 1977. You may find women are working as a managing director of many garments industry. If you see the scenario of last 10 to 15 years record of apparel industry then you must identify that there is a clear indication of positive growth. In 1978, there were only 9 export-oriented garment manufacturing factories, which generated export earnings of hardly one million dollars. Many garments factory started their operation in small scale both for local and export purpose, later on they expand their business if they successfully find the market and buyers positive feedback. Four such small and old units were Reaz Garments, Paris Garments, Jewel Garments and Baisakhi Garments. Total export value history along with knit & woven sector is given below as per Export Promotion Bureau & BGMEA report:

Different Types of Knit Items Export Share Percentage

Different Types of Knit Items Export Share Percentage

Top Foreign Buyers of Bangladesh Knitwear Industry

Top Foreign Buyers of Bangladesh Knitwear Industry

SWOT Analysis of Knitwear Sector of Bangladesh

Strength of Bangladesh Knit Garments Sector

  1. Worldwide demand for good quality & cheaper knitwear products
  2. Flexible labor market for continuous improvement& growth
  3. Local yarn supplier & own knitting(Textile) sector
  4. Separate dyeing, finishing, printing, embroidery industries increases
  5. Have export relation of about 153 countries
  6. More than 200 composite factories with sufficient ETP facilities
  7. There exist strong backward linkage facilities
  8. Socially & environmentally compliant factories
  9. Adopting of clean & green production mechanism
  10. Duty free & quota free access to EU, Canada, Australia, Japan etc.

Weakness of Bangladesh Knit Garments Sector

  1. Lack of technology-oriented types of machinery & production system
  2. Can’t go with the flow of product diversification & short lead time
  3. Lack of forecasting & hypothetical analysis of order taking
  4. Dependency on some specific buyer order leads to low FOB price
  5. Higher bank interest & insurance policy
  6. Lack of variety of knit fabric producing capability
  7. In-house design & development team are not strong enough
  8. Recent salary increments of garments worker
  9. Cost of utility & natural gas increases
  10. Not go with the flow of market & product diversity

Opportunities of Bangladesh Knit Garments Sector

  1. Buyer attention on the Asian subcontinent market
  2. Open costing facility of many international buyers
  3. Research & education on these helps to flourish knowledge
  4. Government & non-government skill improvement programs
  5. Buyer own initiatives to productivity improvements projects
  6. Competitors are moving in other business trends
  7. Green revolution attracts buyers to expand business
  8. Presence of economic zone & infrastructure facility attracts a buyer
  9. Business expansion in the African subcontinent
  10. International Expo, textile fairs attracts global markets

Threats of Bangladesh Knit Garments Sector

  1. E-shop & variety of on-demand shops worldwide
  2. Internal competition of knit factories to grab order
  3. Shorter lead time & product diversity accepted cordially by China
  4. High making cost & freight on board cost
  5. Gendered diversion of workforce makes shields for improvements
  6. Political & environmental crisis
  7. Competitors producing trendier & fancy items
  8. Global retailer lower price offer because of grading product systems
  9. Safety issue, longer working hour, subcontracting leads buyer wrath
  10. Competitions producing more complex fabric as well as products

Vision of Bangladesh Knitwear Industry

Followed by BKMEA forecasting, there is a bright vision for Bangladesh knitwear Industry. Though at first it was not leading sector but with times it has almost equal impact over economy, social and so on. Below forecasting show the vision for our knitwear sector:

The vision of Bangladesh Knitwear Industry

Related articles you may love to read

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba

Scenario of Bangladesh Woven Garments Sector

The Scenario of Bangladesh Woven Garments Sector and SWOT Analysis

Once upon a time, the woven sector was the most leading RMG sector in Bangladesh. With growing trend knit & denim also reaches the top floor that all of them are competing with each other. In this article, we will share with you the current scenario of Bangladesh Woven Garments Sector and SWOT Analysis. In the fiscal year 2017 to 2018, the export value of the woven product was 50.39% which was 15426.25 million $ of total worth. But in recent dependency on imported fabrics & lack of proper policy on energy supply have a negative impact on the competitiveness of Bangladesh’s woven garment in the global market. The woven sector had seen negative growth in major export destinations including Germany and the US. There needs new investment & backward linkage, technological improvements, availability of modern types of machinery, a wide variety of products etc.

The scenario of Bangladesh Woven Garments Sector and SWOT Analysis

During an interview with the Dhaka Tribune, BGMEA senior vice president, Faruque Hassan told that “woven products manufacturers are highly dependent on import for fabrics, which costs more. That’s why woven garments export is experiencing slower growth and it is also losing its strength in the world export market. We do not have manmade fiber, polyester, and petrochemical, which we must import. We will be competitive if we can meet the demand from our local sources,” he quoted. “Stakeholders are investing to upgrade machinery for value addition, this will increase the confidence of the buyer and they will also place the orders for higher end woven products in Bangladesh “he also added to his view. It takes about 35 days to ship goods to the US from Bangladesh, indeed a long time. On contrary, China takes 20 days and Turkey takes15 days. This is another big reason for losing global market. There is a demand of approximately three billion meters of woven fabric in a year. a local mill can produce around 45 million meters fabric which is around 14-15%, a less portion of the demand. Every year the country is investing almost 4 billion % to import fabric for making a woven product. There is huge demand and supply conflict. Woven sector is fighting to overcome all the obstacles & making its garments on global field.

Top Foreign Buyer of Bangladesh Woven Garments  Industry

Brand name Country
H & M Sweden
Puma Germany
Nike USA
WalMart USA
Levi’s USA
Gap USA
PVH USA
New Yorker Germany
Sainsbury UK
Quick silver Australia
Haggar USA
C&A Belgium
Timberland USA
Colince UK
M & S UK
Linmark Japan
Salomon France
Red Cap Sweden
L.L. BEAN INC. USA
Diesel UAE
LANDS’ END INC. USA
Lindex Japan
Granville Australia
Decathlon France
VF Asia USA

SWOT Analysis of Bangladesh Woven Garments Sector

SWOT Analysis of Bangladesh Woven Garments Sector

Strength of Woven Garments Sector of Bangladesh

  1. Positive image as top leading global brands expanded business
  2. Local trims & accessories availability
  3. Inhouse washing, wrinkle free units
  4. Adequate machines & spare parts maintenance facility
  5. Easier to use new methods & technologies than knit
  6. Presence of local & global experts
  7. Demand of woven products locally & globally
  8. Own hand loom & hometex section
  9. Eco friendly & green factories
  10. Establishment of multinational companies attracts foreign buyers

Weakness of Woven Garments Sector of Bangladesh

  1. Lack of local fabric supplier& import dependency
  2. Lack of investment in backward linkage
  3. Absence of value addition and modern technology
  4. Can’t compete in regards of short lead time
  5. Lack of innovation as per fashion & trend
  6. Cost of utility & natural gas increases
  7. Recent salary increments of garments worker
  8. Lack of international standard local experts& business professionals
  9. Local designers are not trained & can’t make optimized cost product design
  10. Giving less attention in woven sector than knit or denim

Opportunities of Woven Garments Sector of Bangladesh

  1. Open costing facility among competitors based on cost & quality
  2. Ease of communication with foreign buyers
  3. Easier quality approval policy
  4. Larger demand of woven clothing, bags, fashion accessories etc.
  5. Foreign buyer specific design or trendy products
  6. Government recent tax reduction for apparel sector
  7. Presence of trade analysis & research institution
  8. Comparatively less product variety than knit to make fusion
  9. Availability of local trims & accessories factories
  10. Kneeling of neighbor countries RMG sector

Threats of Woven Garments Sector of Bangladesh

  1. China & Turkey attracting buyer by their short lead time shipment
  2. E-buy shop & retail store with custom made products
  3. Global retailer lower price offer because of grading product systems
  4. Corruption & other anti-social activities lead foreigner to source any others
  5. Product variety & demand of fancy items fulfilled by competitors
  6. Neighbor countries established attractive infrastructural facilities
  7. Dependency of mother buyers of specific region
  8. Competitors producing variety of fabric & fabric mixed products
  9. India & Myanmar focusing on expanding their global market
  10. Increase of rich people number may have negative impact

Fishbone Analysis of Woven Garments Export Falling Behind

Fishbone Analysis of Woven Garments Export Falling Behind

Fishbone analysis is a cause and effect diagram, a diagram with list of causes behind specific reason. Here I made a fishbone analysis of Woven Garments export falling behind of Bangladesh; Hope this fishbone diagram will clear your concept and would help you to work on reducing problem of woven sector.

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba

Current Scenario of Denim Market of Bangladesh

Current Scenario of Denim Market of Bangladesh and SWOT Analysis

Current Scenario of Denim Market of Bangladesh and SWOT Analysis

Worldwide denim products demand created the opportunity for the denim sector in Bangladesh. Here we will try to show what is the Current Scenario of Denim Market of Bangladesh and SWOT Analysis and how our business opportunity is growing. According to managing director of Denim expert ltd., Currently Bangladesh has 31 denim mills with a capacity of 435 million yards of fabric a year. Bangladesh denim products beat European markets, United States by occupying a lion’s share of denim. Bangladesh is one the largest manufacturing and exporting countries of denim products to Europe with a 27% market share. With 14.20% market share, Bangladesh is the 3rd largest exporter of denim products in the US after Mexico and China. As per the Eurostat report, in 2017, Bangladesh exported denim products of €1.30 billion, in 2016 it was €1.29 billion; within a year rise of .54%. Bangladesh had export growth of 9.55% in the US market at that year of $507.92 million. Pakistan, Turkey, and Vietnam are the three closest competitors of Bangladesh. Top products of denim from Bangladesh are, women/girl Blue Denim Trousers, man/boy Blue Denim Trousers, Blue Denim Skirts, man/boy Blue Denim Suit Type Coats, Playsuits or jumpsuits, shirts etc. During an interview with Dhaka Tribune, general manager of Square Denim told that “Investment in denim fabrics and denim manufacturing has increased sharply. Because of this production capacity has increased too, pushing the export earnings up and taking the lead in the global markets”. During an interview with Dhaka Tribune, Abdus Salam Murshedy, Managing Director of Envoy Textiles which is the no one LEED platinum certified green factory, told that “Buyers always want quality fabrics when it comes to denim products. For manufacturing a quality fabric it is necessary to use the latest technology and we have already established that.”

Top Denim Buyers of Bangladesh

‘Technavio’ market research & advisory firm reported that the global denim market is worth $60 billion. It is expected to achieve a growth of annual 6.5% within 2020. As per their report, Asian countries will lead this sector & China is the fastest growing Asian country. During an interview with Dhaka Tribune, Managing Director of Denim Expert Limited quoted that, “There is hardly any adult in the world whose wardrobe does not contain at least one pair of jeans. Moreover, jeans are now worn and loved by women and children across the world because of its comfort, durability, and style. So, we must consider that there is a prospect of Bangladesh’s denim export in the coming years,” As Bangladesh is currently leading US & EU, there is a bright growth scope for this sector. He also added, “If Bangladesh can make its footing stronger in developing design and innovation, then the sky is the limit for our denim industry.” Bangladesh is moving to produce high demanding fashionable products rather than traditional wears. Denim or jeans products are more likely to choose by youngers, girls, students, labors who choose to be comfortable & trendy. As per Cotton Inc study report, among Europe and Latin American people 71% follow denim wears, 70% USA people choose to wear denim products, 57% Japanese & 58% Chinese people wear denim clothing. Bangladesh denim sector chooses to go green policy & producing in the environment-friendly method. This is another reason for attracting global buyers to business with us.

Top Foreign Denim Buyer of Bangladesh

Brand name Country
H & M Sweden
Uniqlo Japan
Tesco UK
Walmart USA
Levi’s USA
Diesel UAE
Wrangler USA
G-Star Netherland
s. Oliver Germany
Hugo Boss Germany
Gap USA
PVH USA
G-Star Netherland
Charles Voegele Italy
Jack and Jones Denmark
River Island UK
C&A Belgium

SWOT Analysis of Denim Sector of Bangladesh

SWOT Analysis of Denim Sector of Bangladesh

Strength of Bangladesh Denim Industry

  1. Leading position in EU & US market
  2. Presence of top global buyers
  3. Good quality blue denim products
  4. Eco-friendly & green factories
  5. Local yarn & fabric mills
  6. Local trims & accessories
  7. Global demand for denim products
  8. Adopting technology & automation
  9. Adequate machines & spare parts maintenance facility
  10. Presence of local & global experts

Weakness of Bangladesh Denim Industry

  1. Lack of automated weaving & sewing machines
  2. Workers mindset of staying traditional sewing procedure
  3. Fear of taking short lead time order
  4. Cost of utility & natural gas increases
  5. Lack of design & innovation in product
  6. Custom made product order not receiving
  7. Recent salary increments of garments worker
  8. Lack of international standard local experts
  9. Lack of leaser dyeing, wrinkle-free unit, modern grinding facilities
  10. Yarn price, vat & tax, no free access because of developing countries etc.

Opportunities of Bangladesh Denim Industry:

  1. US & UK market interest in the South Asian region
  2. Competitor Pakistan undergoing economic instability
  3. Competitor China focusing on electronic sector than apparel
  4. Government recent tax reduction for the apparel sector
  5. Local denim mills establishment in the regional area.
  6. Adequate water &raw materials availability
  7. Importing state of art machinery from abroad
  8. Local factories & buyer’s investment in the denim sector
  9. Presence of trade analysis & research institution
  10. The fame of good quality & optimized product cost

Threats of Bangladesh Denim Industry

  1. Gas & electricity crisis increases as well as price
  2. Foreign buyer interest may reduce because of an adequate port facility
  3. Still need to import 50% denim fabric, which tends delay shipments
  4. Global retailer lower price offer because of grading product systems
  5. Competitors producing trendier & fancy items
  6. Online based shops & custom-made products
  7. Similar articles of clothing import at a low price
  8. India & Myanmar focusing on expanding their global market
  9. An increase in rich people number may have a negative impact
  10. Corruption & other anti-social activities lead foreigner to source any others.

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba

Costing of Knit Garments

Costing of Knit Garments: During the consumption, it is good practice to use the measurement of middle size for calculation or the size which have most of the quantity. For example, If the style has 6 sizes then better to use size number 04 for consumption. Here we will show you the calculation consumption for the size “L”.

Costing of Knit Garments

  1. Body length of the garments in cm. Say it is – 73 cm
  2. Sleeve length of the garments in cm. Say it is – 19.5 cm
  3. Approximate stitching allowance at body hem, shoulder joint, sleeve hem joint (in cm). Say it is – 10 cm
  4. Chest width (1/2) in cm. Say it is – 52 cm
  5. Approximate stitching allowance at each facet seam (in cm). Say it is – 4 cm
  6. Fabric GSM (finish). Say it is – 160 gsm
  7. Approximate fabric wastage in various stage. Say it is – 10%

In this regard, fabric wastage depends on how many additional elements the garments have, which may change in any time. When there is rotary print in garments or enzyme stone wash than the amount of fabric wastage will be more than the normal level of wastage.

Knit Garments Costing Formula

Costing of Knit Garments, Knit Garments Costing

What need to know or do before start costing

Fabrication: Take clear idea regarding the fabrication before taking the order from the buyer/buying house. After then, you need to ensure that you have a strong a good source of fabric.

Size specification: You also need to ensure that there is a correct size specification with the measurement of all the sizes, which will be ordered. Most of the time we see that PO sheet has come with a new bigger size which was not included during costing.

Fabric color: Try to know that, how many colors the style has & also try to know that, color-wise order quantity ratio.

Quantity: Take information regarding approximate order quantity.

Shipment date: Asked buyer for the shipment date and check with your production department, whether they have enough space for shipped out the followings qty within the require ship date or tell you’re a possible date.
Test requirement: This will allow you to recognize the order need to any test or not.
L/C payments term: Take a copy from the respective party previously and discuss with your commercial people regarding all the terms along with payment terms.

Inspection: Get a confirmation from the buyer that, who will inspect the goods. If there involve third party then who will pay the charge.

GSP: Please confirm with the buyer that they need the GSP or not.

Calculating Fabric Consumption

Body Consumption: 

Calculate the body fabric consumption at first. If possible calculate it after making the pattern. Be confirmed regarding the dia. Calculate the consumption with adding + 5 gsm extra which fabric is sells in kg (s/j, pique, rib etc.). Or reduce 2” (in width) from the both side which are in yards (tricot, taffeta etc.). Moreover, if the garments are wash garments then make sure that, the pattern has the wash allowance.

Moreover, if clothes|the clothes} square measure wash garments then ensure that the pattern has the wash allowance.

Rib: Calculate the rib consumption carefully because sometimes the garments have a rib at cuff opening & bottom hem. Some individuals erroneously do the consumption considering one cuff.

Neck tape: Calculate the consumption of neck tape.

Applique & others fabric: Ensure that, you’re not missing any appliqué cloth.

Estimate the wastage: Normally we add 9% wastage for the knit items. However, it’s may vary depends on how many processes the garments have. If it is with only front chest print then 9% is ok but if with all-over /rotary print, with heavy wash etc. then you must increase the wastage. Moreover, if the garments with pigments dye then add minimum 25 to 30% wastage because in this pigment dye garments reject percentage is very high.

Others Item

Print: If the garments have print then make sure that you have a clear artwork of it. Check the print quality, dimension & placement. Send the artwork to your printers for a better price idea. Many times, we found that the buyer has asked for so many type/kind prints in the same body which is so difficult for production. Such as, if the buyer asked for Flock + discharge & foil print in at the same artwork then it is not possible for production.

Embroidery: Discuss with your embroidery provider concerning the embroidery & take quotation of price.

Wash: Take the washing cost from the washing factory.

Test: Confirm the charges of the test from the testing company.

Accessories and Trims

Sewing thread: Confirm that, which thread you need 100% cotton, spun polyester or filaments. Then you need to ensure the count 50/2 or 40/2 or any other denier. It’s may vary on fabrications. Regarding the pigment dye garments, we normally used cotton grey color cotton thread. Calculate the sewing thread consumption part by part & add require wastage percentage.

Labels: Take the quotation from your supplier for the entire woven & satin/paper label.

Tape: Calculate the consumption of tape if it has, such as Velvet, herringbone or canvas etc.
Elastic: Make sure which denier & width it need. Then take the quotation from supplier.

Zipper: If the garments have zippers then confirm that, from where you will purchase that. Many time the logo zipper need to import the mold from abroad. Make sure the zipper quality, such metal or nylon zipper. Check the zipper measurement from your production department and get prices from your zipper supplier.

Button: Take the button price from your supplier if the garments have it.

Inter lining: Calculate the inter lignin price if the garments need.

Patch or badge: Calculate the patch or badge or others metal item if the garments have.

Finishing item: Tissue paper, silica gel, hang tag, barcode sticker, backboard, h/tag string, scotch tape, security tag calculates the prices of these items.

Hanger: Take the quotation of a hanger.

Poly: Make the measurement of poly. Confirm the quality & with adhesive or not.

Carton: Find out the carton measurement & take the prices from carton supplier along with top, bottom & divider.

PP belt: Take the price quotation of pp belt if the buyer asked it.

Commercial Cost

Normally we add 3% of total purchase (Fabric cost+ other item cost + Accessories cost) as commercial cost if the L/C payments terms are as sight. If the L/C is 60 days deferred then you can add 7.5% additional cost of total price and it will be 15% for 90 days deferred.

CM (Cost of making)

Calculate the CM after finalizing CPM of the factory. It varies depending on Product SMV & Efficiency.

CPM (Cost Per Minutes) = (Direct Labor Cost + Operational Cost) of the month/ Usage Minutes (Available Minutes) of the month.

CM= (SMV × CPM)/ Expected Efficiency%

Price Break Down of Polo Shirt

Description: 100% cotton pique polo shirt with two buttons at front placket w/o any pocket. At first, we will calculate the consumption of body fabric from Size spec which we have got from the buyer.

Suppose,

i) The body fabric consumption is 5.10 kg / dozen

So, total yarn consumption will be = 5.10 + 9%

= 5.10 + 0.459

= 5.559 kg / dozen

ii) The current yarn price is $3.5.00/kg

iii) The current Pique knitting cost is $0.25/kg (Knitted by circular knit S/J M/c)

iv) Average color dyeing cost is $1.23 / kg

v) Normally Collar & cuff consumption is 60 gram/body (1 pc collar & 2 pcs cuff)

So, for 12 pcs it will be -0.06 X 12 + 9% = 0.78 kg / dozen

vi) Collar & cuff Knitting cost is $0.05 (knitted by flat knitting m/c)

Step: 1

Body fabric cost calculation:

Yarn price / kg = $3.50

Knitting cost /kg = $0.25

Dyeing cost / kg = $1.23

Finished fabric cost = $4.98

Step: 2

Collar & cuff cost calculation:

Yarn cost/Doz = 0.78 X $3.50 = $2.73

Knitting cost/Doz = $0.05 X 12 = $0.60

Dyeing cost = 0.78 X $1.23 = $.9594

Collar& Cuff cost / Doz = $4.2894

Step: 3

Total production cost:

Body fabric cost (5.559 kg X $4.98)  

= $27.68 / Doz

Collar & Cuff cost = $4.2894 / Doz

CM = $5.50 / Doz

Accessories Cost = $2.50 / Doz

Total production cost: = $39.97 / doz

Final Step

Fob pricing of per piece polo shirt:

Total production cost: = $39.97 / doz Commercial cost will be (3%) = $1.03 / doz (Except Cost of Making)

Profit will (20% of Cost of Making) = $1.10 / doz

Total FOB price (doz) = $42.1 / doz

Fob price per piece will be = $3.5083 / pc

Final quoted price for buyer = $3.51 / pc (FOB)

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba