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
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
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.
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
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 late1970’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.
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
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 expectedsalary. 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.
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
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
Remove packing error and keep accurate pack SKU
Save time and cost, increase work efficiency
Auto-generating packing list
Auto-generating case label
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.
‘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
Initiatives from University Life
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.
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’.
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.
You just
finished your final exam, continuing your thesis/ project/ internship, now it
is your time to select your career!
Career Path Selection
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.
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.
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!
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
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!
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!
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!
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.
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:
Trade Information of RMG Sector in Bangladesh
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:
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.
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.
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.
Knitwear
Readymade Garments Sector of Bangladesh, Woven & Knit sector contribution,
Export trade information, top buyers, manufacturing items, vision and SWOT
analysis.
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
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
Top Foreign Buyers of Bangladesh Knitwear Industry
SWOT Analysis of Knitwear Sector
of Bangladesh
Strength of Bangladesh Knit Garments Sector
Worldwide demand for good quality & cheaper knitwear products
Flexible labor market for continuous improvement& growth
Local yarn supplier & own knitting(Textile) sector
Separate dyeing, finishing, printing, embroidery industries increases
Have export relation of about 153 countries
More than 200 composite factories with sufficient ETP facilities
There exist strong backward linkage facilities
Socially & environmentally compliant factories
Adopting of clean & green production mechanism
Duty free & quota free access to EU, Canada, Australia, Japan etc.
Weakness of Bangladesh Knit Garments Sector
Lack of technology-oriented types of machinery & production system
Can’t go with the flow of product diversification & short lead time
Lack of forecasting & hypothetical analysis of order taking
Dependency on some specific buyer order leads to low FOB price
Higher bank interest & insurance policy
Lack of variety of knit fabric producing capability
In-house design & development team are not strong enough
Recent salary increments of garments worker
Cost of utility & natural gas increases
Not go with the flow of market & product diversity
Opportunities of Bangladesh Knit Garments Sector
Buyer attention on the Asian subcontinent market
Open costing facility of many international buyers
Research & education on these helps to flourish knowledge
Government & non-government skill improvement programs
Buyer own initiatives to productivity improvements projects
Competitors are moving in other business trends
Green revolution attracts buyers to expand business
Presence of economic zone & infrastructure facility attracts a buyer
Business expansion in the African subcontinent
International Expo, textile fairs attracts global markets
Threats of Bangladesh Knit Garments Sector
E-shop & variety of on-demand shops
worldwide
Internal competition of knit factories
to grab order
Shorter lead time & product
diversity accepted cordially by China
High making cost & freight on board
cost
Gendered diversion of workforce makes
shields for improvements
Political & environmental crisis
Competitors producing trendier &
fancy items
Global retailer lower price offer
because of grading product systems
Safety issue, longer working hour,
subcontracting leads buyer wrath
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 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.
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
Strength of Woven Garments Sector of Bangladesh
Positive image as top leading global
brands expanded business
Local trims & accessories availability
Inhouse washing, wrinkle free units
Adequate machines & spare parts maintenance
facility
Easier to use new methods &
technologies than knit
Presence of local & global experts
Demand of woven products locally &
globally
Own hand loom & hometex section
Eco friendly & green factories
Establishment of multinational companies
attracts foreign buyers
Weakness of Woven Garments Sector of Bangladesh
Lack of local fabric supplier&
import dependency
Lack of investment in backward linkage
Absence of value addition and modern
technology
Can’t compete in regards of short lead
time
Lack of innovation as per fashion &
trend
Cost of utility & natural gas
increases
Recent salary increments of garments worker
Lack of international standard local
experts& business professionals
Local designers are not trained &
can’t make optimized cost product design
Giving less attention in woven sector
than knit or denim
Opportunities of Woven Garments Sector of Bangladesh
Open costing facility among competitors
based on cost & quality
Ease of communication with foreign
buyers
Easier quality approval policy
Larger demand of woven clothing, bags,
fashion accessories etc.
Foreign buyer specific design or trendy products
Government recent tax reduction for
apparel sector
Presence of trade analysis &
research institution
Comparatively less product variety than
knit to make fusion
Availability of local trims & accessories
factories
Kneeling of neighbor countries RMG sector
Threats of Woven Garments Sector of Bangladesh
China & Turkey attracting buyer by their short lead time shipment
E-buy shop & retail store with custom made products
Global retailer lower price offer because of grading product systems
Corruption & other anti-social activities lead foreigner to source any others
Product variety & demand of fancy items fulfilled by competitors
Neighbor countries established attractive infrastructural facilities
Dependency of mother buyers of specific region
Competitors producing variety of fabric & fabric mixed products
India & Myanmar focusing on expanding their global market
Increase of rich people number may have negative impact
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.
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.”
‘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
Strength of Bangladesh Denim Industry
Leading position in EU & US market
Presence of top global buyers
Good quality blue denim products
Eco-friendly & green factories
Local yarn & fabric mills
Local trims & accessories
Global demand for
denim products
Adopting technology & automation
Adequate machines & spare parts maintenance
facility
Presence of local & global experts
Weakness of Bangladesh Denim Industry
Lack of automated weaving & sewing
machines
Workers mindset of staying traditional
sewing procedure
Fear of taking short lead time order
Cost of utility & natural gas
increases
Lack of design & innovation in
product
Custom made product order not receiving
Recent salary increments of garments
worker
Lack of international standard local
experts
Lack of leaser dyeing, wrinkle-free unit, modern grinding facilities
Yarn price, vat & tax, no free
access because of developing countries etc.
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
Body length of the garments in cm. Say it is – 73 cm
Sleeve length of the garments in cm. Say it is – 19.5 cm
Approximate stitching allowance at body hem, shoulder joint, sleeve hem joint (in cm). Say it is – 10 cm
Chest width (1/2) in cm. Say it is – 52 cm
Approximate stitching allowance at each facet seam (in cm). Say it is – 4 cm
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
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)
