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.
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.
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)
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
Garments
maker, Specific style and buyer name
Total and size wise order quantity
Style
description and color
Size-wise Cut vs. Order vs. pack quantity, carton quantity
Carton wise
case number
Size-wise
carton net and gross weight
Carton
measurements and Total carton CBM
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
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 knowhow 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
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
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.
Benefits of Lean Manufacturing
The benefits and advantages of lean manufacturing will be more clear to you after reading this below mention list:
Improve
productivity and quality
Reducing
Work in Process (WIP) inventory.
Eliminate
waste and problems
Reducing
inventory area
Reduce
cycle and lead time
Production
flow and controlled automation
Reduce
manpower, time and space
Improve
visual management
Reducing
machine downtime
Optimize
resources
Sustainability,
employee satisfaction, and increase
profit
Improve workplace and organize.
Improve
safety conditions and housekeeping.
Increase
customer satisfaction and customer service
Principles of Lean Manufacturing
5 principles of lean manufacturing can be applied in any
manufacturing industry.
Define
Value
Map the
Value Stream
Create Flow
Establish
Pull
Pursue
Perfection
Lean Manufacturing Tools Used in Garments Industry
5S
KPIs
Bottleneck
Analysis
Kanban
Board
Visualize
management system
7 Wastages in
manufacturing
Value stream
of a product
Gemba
Continuous
Improvement- Kaizen
Total
Quality Management (TQM)
Pareto
Analysis
Root Cause
Analysis
Continuous
Flow
Right First
Time
A3 Problem
Solving
PDCA (Plan,
Do, Check, Act)
Muda
(Waste)
Overall Equipment Effectiveness (OEE)
Standardized
Work
Poka-yoke
(Mistake Proofing)
Cellular
manufacturing
Total
Productive Maintenance (TPM)
Zero
quality defects
5S
5S is the first step to implement lean manufacturing, it helps to keep workplace organize and clean. It is actually toolsof continuous improvement.
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.
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.
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.
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:
Transport
Inventory
Motion
Waiting
Over-Processing
Overproduction
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
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 focus
A goal is to identify and meet customer needs
Continuous improvement
A Philosophy of never-ending improvement
Employee empowerment
Employees are expected to seek out, identify and correct quality problems
Use of quality tools
Ongoing employee training in the use of quality tools
Product design
A product needs to be designed to meet customer expectations.
Process management
Quality should be built into the process; the source of quality problems should be identified and corrected.
Managing supplier quality
Quality 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.
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.
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.
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
