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

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

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

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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

Packing List in Garments Factory

A packing list is a very important document for the apparel industry. Generally, merchandiser or packing in-charge is responsible to make and delivering packing list to related departments. Packing section does packing as per customer packing requirements that solid or asserts/ratio pack. Here in this article you will find sample of Packing List in Garments Factory.Packing is done when a PO packing is completed, without giving packing list buyer QC never does a final quality inspection, packing list confirm buyer QC that a PO’s packing is closed. The packing list is very important to export documents, without packing list commercial department cannot submit exports document for garments shipment, that’s why packing list consider as important documents.

Information Includes in the Packing List in Garments Factory

  1. Garments maker, Specific style and buyer name
  2. Total  and size wise order quantity
  3. Style description and color
  4. Size-wise Cut vs. Order vs. pack quantity, carton quantity
  5. Carton wise case number
  6.  Size-wise carton net and gross weight
  7. Carton measurements and Total carton CBM
  8. Total over or short pack quantity

Packing List sample of the Apparel Industry

Here I have attached a packing list sample for your easy understanding

Packing List sample of the Apparel Industry
Sample of Garments Packing List

Downloadable Packing List Excel File

If you work in the apparel industry surely packing list is very important to document for you especially for the merchandising department. Here I am giving excel sheet to know how to make packing list very easily, you practice packing list in excel what will give you comfort making a packing list your factory. Download garments packing list format

Written by

A.M. Amirul Islam (Washim)

Facebook: Amirul Islam Washim
E-mail: [email protected]

Operation Breakdown SMV and Layout of Chino Short Pant

SMV indicates the Standard Minute Value, that is standard time required to make a particular garments. On the basis of SMV you can calculate your cost of your garments and planning to set target of production. Chino short pant SMV is 37.42 and 69 sewing machine will be needed. We shared operation bulletin of Chino long pant in past, now we are sharing Operation Breakdown SMV and Layout of Chino Short Pant.

Operation Breakdown, SMV and Layout of Chino Short Pant Manufacturing

Operation Breakdown SMV and Layout of Chino Short Pant Manufacturing

SL.OPERATIONSMVTGT
FRONT
1O/L at fr.rise 0.30200
2Bone joint with fr part0.6790
3Corner cut 0.40150
4Tack at pkt mouth posn0.6790
5Top stt. At pkt mouth posn0.7580
6Coin pkt close 0.38160
7Safety tack at  pkt beg corner & W/b Side0.40150
8 Pocketing  matching0.50120
9Facing joint with Fr  pkting0.40150
10Pocketing attach at pocket mouth0.50120
11Front pocket mouth top stitch0.50120
12Tack at pkt mouth posn0.43140
13Fr pkt bag close by O/L0.60100
14pocket bag side tack0.60100
15Fr pkt bag 1/4 top stt0.60100
16Pockting & sheel body fab att.at w/b side0.7580
17O/L at fr.rise 0.30200
18D/ply make & turn over0.40150
19S/ply & d/ply piping (use folder)0.40150
20S.ply att. +  1/8  top stt. 0.60100
21Zipper joint at s.ply0.50120
22J stt  with mark0.6790
23D. ply att with zipper 0.50120
24Fr zip 1/16″ top stt 0.60100
25High top stt0.60100
26Care label attach 0.60100
27Total  5.17
SL.BACK PART SMVTGT
1Mark flap for making 0.60100
2Flap making (BK)0.40150
3Flap turn 0.6790
4Scissoring at flap0.6790
51/4 Top  stt at Bk pkt flap0.6790
6Mark at bk part fr dart & bone joint0.55110
7Dart making0.46130
8Top stt. At Dart posn0.40150
9Bk pockting o/l0.40150
10Bk pockting att. At bk part0.50120
11Bone making0.46130
12Mark at bone fr joint0.50120
13Bone & Flap joint0.6790
14Bone cutting1.5040
15Bone mouth inside tack0.7580
16Bone mouth top lower stt0.7580
17Facing joint at bk pockting(Bone side)0.55110
18Bone mouth top upper stt0.6790
19Facing joint at bk pockting0.55110
20Bk pkt close1.5040
21Tack at bk pocket upper side0.40150
22Back rise joint0.35170
23top stt at Back rise joint posn0.50120
24Total  14.45
SL.ASSEMBLY SMVTGT
1Fr to Bk part match0.48125
2Side seam0.50120
3Belt Contrast part fusing0.6790
4Belt piping (use folder)0.40150
5Chine stt. At w/b contrast part0.40150
6Two (LOGG & Size) lbl joint0.30200
7Main lbl joint at  w/b contrast part0.50120
8potty joint at w/b btn att posn1.0060
9Extra loop Iron0.30200
10Extra loop Att. At bk rise0.35170
11Belt match0.50120
12Waist belt iron ( use folder)0.50120
13Belt two part joint0.50120
14Body mark for loop att.0.40150
15Loop making0.40150
16Loop mark & cut0.60100
17Lbl joint at loop0.6790
18Loop attach lower side0.60100
19Belt joint ith body0.60100
20False tack at w/b 0.60100
21Top att at w/b lower side0.7580
22Name lbl & care lbl joint0.46130
23Mouth cut+  trim0.50120
24Mouth close in side0.7185
25Mark for zipper psn  + thread open at mouth0.7580
26Mouth close top side0.60100
27Inseam0.60100
28Inseam top stt.0.55110
29Elastic cutting & mark for joint0.6790
30Elastic Tack 0.6790
31Leg hem0.7580
32Loop attach upper side0.60100
Total 17.86
G TOTAL37.47
                  MANPOWER REQUIREMENT Number
Snap = 0
S/N    =52
O/L   =8
D/N   =3
F/O/A  =0
BARTACK   =0
K/S   =0
C/S    =6
  HELPER   =20
IM   = 2
TOTAL MANPOWER91
L/C   =1
S.VISOR  = 3
TOTAL MANPOWER95

Written by

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

Linkedin: A.M. Amirul Islam

Implementation of Lean Manufacturing in Garments Factory

A Successful Implementation of Lean Manufacturing in Garments Factory Works as a Driving Force to Ensure Effectiveness in Operation

What is Lean Manufacturing?

Lean manufacturing is a systematic methodology to eliminate waste (non-value-added activities) by the continuous improvement which adds value to the customer and surely in manufacturing as well but without hampering productivity. Lean Manufacturing is all about the optimizing processes, eliminating waste; eliminating inventory, building a quality product, more efficient workplace with less cost and human effort. The manufacturing system is work for customer satisfaction and optimization of all resources.

Implementation of Lean Manufacturing in Garments Factory

Benefits of Lean Manufacturing

The benefits and advantages of lean manufacturing will be more clear to you after reading this below mention list:

  1. Improve productivity and quality
  2. Reducing Work in Process (WIP) inventory.
  3. Eliminate waste and problems
  4. Reducing inventory area
  5. Reduce cycle and lead time
  6. Production flow and controlled automation
  7. Reduce manpower, time and space
  8. Improve visual management
  9. Reducing machine downtime
  10. Optimize resources
  11. Sustainability, employee satisfaction, and increase profit
  12. Improve workplace and organize.
  13. Improve safety conditions and housekeeping.
  14. Increase customer satisfaction and customer service

Principles of Lean Manufacturing

5 principles of lean manufacturing can be applied in any manufacturing industry.

  1. Define Value
  2. Map the Value Stream
  3. Create Flow
  4. Establish Pull
  5. Pursue Perfection

Lean Manufacturing Tools Used in Garments Industry

  1. 5S
  2. KPIs
  3. Bottleneck Analysis
  4. Kanban Board
  5. Visualize management system
  6. 7 Wastages in manufacturing
  7. Value stream of a product
  8. Gemba
  9. Continuous Improvement- Kaizen
  10. Total Quality Management (TQM)
  11. Pareto Analysis
  12. Root Cause Analysis
  13. Continuous Flow
  14. Right First Time
  15. A3 Problem Solving
  16. PDCA (Plan, Do, Check, Act)
  17. Muda (Waste)
  18. Overall Equipment Effectiveness (OEE)
  19. Standardized Work
  20. Poka-yoke (Mistake Proofing)
  21. Cellular manufacturing
  22. Total Productive Maintenance (TPM)
  23. Zero quality defects

5S

5S is the first step to implement lean manufacturing, it helps to keep workplace organize and clean. It is actually tools of continuous improvement.

We have two articles on 5S you may love to read

KPIs

Key Performance Indicator (KPI) is a performance measuring tool which helps to know about a company the situation of their achieving goals and data of their performance.

You may love to read this detail article: KPI Factors of Garments

Bottleneck analysis

Bottleneck is a process which is the slowest among manufacturing all process hampering production. Bottleneck analysis very much important for garments sewing and finishing section, because it has effects on production flow.

Kanban Board

Kanban is visual display board for visualizing to do list, command what to do to reduce overproduction in the manufacturing floor. 

Please read this article to know more about it. Kanban Board in Garments Manufacturing Production Floor

Visualize Management

Visual management need for an organization that provides information for everybody who can analyze large amounts of data and produce reports that provide meaningful value. Visualization could become the remedy for generating actionable information for the apparel industry.

Please read this article to know more about it. Visual Management System in the Apparel Industry

7 Wastages

Waste is the use of resources over and above what is actually required to produce the product as defined by the customer. Lean manufacturing reduce 7 wastages in types of manufacturing, 7 wastages (Mudas) are:

  1. Transport
  2. Inventory
  3. Motion
  4. Waiting
  5. Over-Processing
  6. Overproduction
  7. Defects

Value Stream of a Product

Value stream mapping is a lean manufacturing or lean enterprise technique used to document, analyze and improve the flow of information or materials required to produce a product or service for a customer.

Gemba

Gemba is Japanese terms which mean to go actual problem occurring place, ask and collecting information from a real place rather than just sitting in the office and depending on other people to collect data.

Continuous Improvement

Continuous Improvement is a philosophy of never-ending improvement. Continuous improvement is an ongoing effort to improve products, services or processes. These efforts can seek “incremental” improvement over time or “breakthrough” improvement all at once.Read more from Continuous improvement

Please read this article to know details about it Implementation of 7 QC tools in the apparel industry

Total Quality Management (TQM)

Total quality management is the management approach of an organization, centered on quality, based on the participation of its entire membership and aiming at long term success through customer satisfaction.  TQM is long time oriented teamwork that requires leadership of top management and continuous involvement.  

Philosophy of TQM

Customer focusA goal is to identify and meet customer needs
Continuous improvementA Philosophy of never-ending improvement
Employee empowermentEmployees are expected to seek out, identify and correct quality problems
Use of quality toolsOngoing employee training in the use of quality tools
Product designA product needs to be designed to meet customer expectations.
Process managementQuality should be built into the process; the source of quality problems should be identified and corrected.
Managing supplier qualityQuality concepts must extend to a company’s suppliers

Pareto Analysis

Pareto Analysis named after the Italian economist, Vilfredo Pareto. The original observation was in connection with population and wealth. Pareto analysis is also known as 80/20 rule. Vilfredo Pareto observed that 80% of Italy’s land (Asset) was owned by 20% of the people. In the late 1940s, Dr. Joseph M. Juran, a Quality Management pioneer, applied this 80/20 Rule to quality control, calling it Pareto’s Principle. Pareto analysis is very much helpful for reducing garments defects that indicate 80% problem happen for 20% causes.

Root Cause Analysis

Root cause analysis is a problem-solving tool, works by identifying by problems, used by employees of manufacturing and work to solve. Root cause analysis is the best way to solve garments defects.

You may love to read this

Reducing sewing defects through root cause analysis

Continuous Flow

Continuous flow means running, moving or producing product continuously of every piece from raw material to finished product, not batch-wise production, called    “1-piece flow”.

Right First Time (RFT)

RFT is quality improvement tools, very much important apparel industry; every section has a target to achieve certain RFT level.

Please read this article to know details about it  RFT factors and calculation in Garments industry

A3 Problem Solving

A3 is a problem-solving tool, a challenge is to write explanation and solution in one page.The purpose of A3 tools is to analysis problem with root cause and define a direct solution.

PDCA

PDCA is plan-do-check-act or plan-do-check-adjust, 4 step management method for quality controlling and continuous improvement.

Overall Equipment Effectiveness (OEE)

Overall Equipment Effectiveness (OEE) means everything is productive in the manufacturing industry. OEE 100% mean manufacturing factory is fully productive, produce only good parts, no idle process, on the machine or other downtimes. If your factory OEE is 50%, surely their lots of things you have to improve and huge opportunity to develop.

Standardized Work

Standardized work is the most powerful lean tools by documenting the current best practice, the baseline for kaizen or continuous improvement. As the standard is improved, the new standard becomes the baseline for further improvements, and so on. Improving standardized work is a never-ending process.

Standardized work consists of three elements:

  1. Takt time, which is the rate at which products must be made in a process to meet customer demand.
  2. The precise work sequence in which an operator performs tasks within takt time.
  3. The standard inventory, including units in machines, required to keep the process operating smoothly.

You may love to read this Standardization of Apparel Manufacturing Industry

Poka-yoke (Mistake Proofing)

Poka-yoke is mistake-proofing tools which help to eliminate mistake in manufacturing floor, a quality control technique.

Cellular Manufacturing

Cellular manufacturing is manufacturing same types of product in cell which improve productivity and quality.

Total Productive Maintenance (TPM)

Total productive maintenance (TPM) is developed in 1960 based on 5S for effective machine and equipment to maximize operational efficiency increment.

Zero Quality Defects

Zero quality defects are the process of maintaining zero defects production through 100% inspection.

Lean Six Sigma certification courses

There are many institutions around the world that have Lean Six Sigma certification courses also available online courses to learn Lean Sigma and getting a certificate.

This content also refers below point’s information

  • Application of lean manufacturing tools in the apparel industry
  • Lean Manufacturing Techniques for garments
  • Importance of lean manufacturing in the apparel industry
  • Lean management in a garments factory
  • 5 Principles of lean manufacturing
  • Importance of lean manufacturing
  • Lean process improvement in Garments
  • List of lean manufacturing tools
  • The lean management system in the apparel industry
  • Lean concepts for garments manufacturing
  • Lean production in Garments manufacturing
  • Lean for garments manufacturers
  • Continuous quality improvement in the apparel industry
  • Application of Kaizen in Garments

Related articles you may love to read

Written by

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

Linkedin: A.M. Amirul Islam