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Necessary IE Terms of Apparel Industry

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Industrial Engineering – IE is one of the popular term used in the apparel industry, where this work for optimization of complex process within the industry. Optimization is applicable to men, machine, materials, methods, and monetary resources. Here in this article you will have details of necessary IE terms of apparel industry with examples.

Necessary IE Terms of Apparel Industry

Necessary IE Terms of Apparel Industry

Needed Industrial Engineering (IE) Terms Mostly Used in Apparel Industry

Very basic apparel industrial engineering terms discussed with example for clear understanding. List of terms are:

  1. Standard minute value (SMV)
  2. Efficiency
  3. Line target
  4. CPM & CM
  5. CM/COM/MC
  6. Broad calculation of garments cm
  7. Conventional vs modern profit theory
  8. Cost of making (CM) rule
  9. Work study
  10. Time & motion study
  11. Line balancing

1. Standard Minute Value (SMV)

  • SMV defined as the term Standard Minute Value, is mostly used in the garments industry and it is common measurement calculated by the Industrial Engineer. Generally, SMV indicates the time taken to make garments by the workers using the right types of machinery.
  • SMV = BASIC TIME + (BASIC TIME × ALLOWANCE)
  • Suppose to complete an operation, a standard operator takes 1 minute.
  • We put 15% allowance (Men, M/c & Time)
  • SMV=1+(1×.15) Min
    =(1+.15) Min
    =1.15 Min
  • GMT SMV is the sum of SMV for all M/c & Manual operation to complete an item

Related Terms of SMV

  • Standard Operator: For a specific item & style, the potential operator who can give maximum output with best quality & can improve productivity.
  • Let’s see an Example for better understanding,
  • Batsman faces 10 balls to score 5 Runs
  • Batsman faces 10 balls to score 12 runs
  • Batsman faces 10 balls to score 10 runs.
  • Obviously 2nd one is the potential batsman who uses his
  • Inputs (balls) to get maximum output (Runs)
Related Terms of SMV Standard Operator
  • Pre-defined Conditions: On time input arrival, single piece flow, running m/c conditions, defined quality status etc. are called pre-defined conditions.
  • Basic Time: Actual time to complete an operation. In other word, basic time is the pick & drop time including operation for quality output.

                        Basic Time= Pick time + Operation + Drop time;

                        Result , Input=Output with required quality

  • In a broad sense , a GMT SMV=Sum of all operation SMV, not SMV of GMT + allowance.

2. Efficiency

  • Efficiency defined as ‘’The comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (Men, M/c, Material etc. )’’
  • Efficiency = Earned Minute/Available Minute
  • Earned Minute = Production (Pcs) x SMV
  • Available Minute = Manpower (Helper + Operator) x Working Time (Minute)

Calculation of Efficiency Percent

  • Suppose any GMT item SMV is 5.5 (For any fixed style SMV always fixed)
  • We use 22 Manpower(Operator & Helper) to achieve 1500 Pcs for 10 hours working shift
  • Earned Minute = 1500× 5.5 or 8250 Min
  • Available Minute = 22× (10×60) or 13200 Min
  • Efficiency = 8250 Min/13200 Min or 0.625
  • Efficiency is expressed as % ,Then Efficiency =(0.625 ×100)% or 62.50%
  • Efficiency is a ratio , not a number.
  • Efficiency vary with Lead Time and Quantity . More Lead time & Quantity Increase Efficiency , on the other hand less lead time tends us to use more MP or time to get required output , so efficiency reduces.

3. Line Target

  • Target= (total MP X WH X 60)/SMV
  • Suppose We have 22 MP for 10 hr .GMT SMV is 5.5
  • Target =(22 X10 X60)/5.5 =2400 PCs/Hr (That is 100% TGT)
  • For expected efficiency this 100% Target is multiplied by efficiency to fix Line Target
  • Line Target =(2400X.625) ; (Lets , we have expected efficiency of 62.5%)
    =1500 PCs or 150PCs/Hr

4. CPM and CM                   

CPM Stands for Cost Per Minute which means Cost of every minute of garments sewing operations. To offer the best competitive price to the buyer and make maximum profit on garments selling CPM cost need to be kept at minimum level.

For Calculating of CPM you need to sum all direct labor cost and any other operational cost for a particular order or for a particular period.

5. CM/COM/MC

  • Cost of Making (CM/COM)/Manufacturing cost(MC) have to calculate after calculating factory CPM.
  • CM = (SMV × CPM)/ Expected Efficiency%
  • Suppose , any GMT item SMV is 4.7, Expected efficiency = 65.8 % , CPM[let] = $0.0267
  • CM = (4.7 × .0267)/ .658
    = $0.19/PCs
    = ($0.19 ×12)/Dzn
    =$2.28 /Dzn

6. Broad Calculation of Garments CM

To calculate the Cost of Making of a garment you have to collect the following information:

  • First of all, you need to get the monthly information of factory rental expense, commercial expense, utility expenses (Electricity, Steam, Compressed Air, Water), transportation cost, repair & maintenance expenses, salary, and wages expense etc. suppose for all these expenses the total cost is 70000 USD.
  • Secondly, the number of functioning machine for a particular month. Suppose the number of machines is 120. Cost associate in the first section is for this 120 machine.
  • You also need the number of machinery to do the layout for the particular item for which we are calculating the cost of making. Suppose the number of machines is 30.
  • By using the existing layout, the amount of target production per hour (excluding the alteration and rejection of garments). Suppose 250 pcs per hour production will be there.
  • The total number of working days for a particular month. This can be 26 days (30 days a month, 4 days of holiday in a month)

Cost of Making (CM) Rule

= {(Monthly total expenditure of the garments factory/ 26 days) / (Number of Functioning Machine of your factory for a particular month) X (Number of machine to complete the layout)} / [{(Production capacity per hour by using existing layout, excluding alteration and rejected quantity) X 8 working hours a day}] X 12 piece

= [{($70,000 / 26) / (120) X (30)} / {(250) X 8}] X 12

= [{2692.30 / (120) X (30)} / 2000] X 12

= (673.08 /2000) X 12

= .33654 X 12

= $4.04/dozen

7. Conventional VS Modern Profit Theory

  • Conventional : COST + PROFIT = PRICE
  • Modern : PRICE – COST = PROFIT
  • Price should be moderate to get maximum order!
  • Cost should be minimized to get maximum profit!

 9. Work Study                                   

  • Systematic study of methods of work to improve effectiveness & set standards
  • 2 stages:

1. Method study: study of current method & find out to implement improved method

2. Work measurement: determine the standard time required to complete improved method

Benefits of Work Study

  • :
  • Productivity improvement
  • Efficiency increase
  • Improved work flow
  • Improved work layout
  • Improved standards

10. Time and Motion Study

  • Time study: a work measuring technique to calculate basic time by finding cycle time & adding allowance
  • Motion study: a technique to analyze operators motion & set a standard by eliminating unnecessary motion
  • Two different theory but need parallel running to improve system known as ‘method engineering’
  • Time & motion study is a conjugal technique to process control, improve dissimilar work performance & set standard goals
  • IE is a combine package to improve by time study, work study & motion study

11. Line Balancing

  • Line balancing is a manufacturing engineering function in which the whole collection of production-line tasks are divided into equal portions.
  • Well balanced lines avoid labor idleness & improve productivity
  • Line balancing is for keeping workload (theoretical mp/actual mp) as 1 or less then 1 by balancing work as per capacity & target
Line Balancing in Apparel Industry

Steps for Line Balancing

Steps of Line Balancing in Apparel Industry
  • Bottleneck’ (constraint m/c or mp or operation that reduces productivity) have to find out
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
Example of Line Balancing of T-Shirt
Basic IE Terms PresentationDownload

Written by

Sharmin Akther Diba

Industrial & Production Engineer

Rajshahi University of Engineering & Technology

Email: [email protected]

LinkedIn: Sharmin Akther Diba

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Job Responsibilities of Production AGM in Apparel Industry

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A production general manager (GM) is a person, who is Head of manufacturing, ultimate responsible person for productivity, operation and operational staff management. Most respected person in garments factory because of having control on whole factory manufacturing process. He is reporting boss of all production managers and staff. GM, DGM, AGM or head of production whatever designation he has (based on experience) works as general manger to handle whole production department to control store, cutting, sewing and finishing. Most of the times he is highest paid employee of his factory such an important person production GM is. He is the person who can communicate with top management (factory owner) for production and production related employee’s appointment and promotion issue. This is the toughest and most important post for garments factory, ultimate responsible person for company’s profit and loss. This article is all about job responsibilities of a Garments Production general manager (GM).

Job Responsibilities of Production AGM in Apparel Industry

Operation/Production AGM/DGM/GM in Apparel Industry

Job Titles of Garments Production Head

Though different designations (vary factory wise) have seen in apparel industry, their job responsibilities are same. 

  1. Production/operation AGM
  2. Production/operation DGM
  3. Production/operation GM
  4. Head of manufacturing
  5. Head of production/operation

Reporting Authority

They report to Top management like CEO (Chief executive officer), COO (Chief operating officer), MD, DMD, Chairman, and Vice-chairman

Skills and Qualities of Garments Production Head

  1. Good leadership from mid-level to lower level
  2. Taking calculate risk
  3. Quick decision making skill in any situation. 
  4. Should be technically sound
  5. Able to understand any fancy and critical product producing
  6. Good judgment and compromise willing person
  7. Well-disciplined and productivity focused.
  8. Problem solver of all technical issue
  9. Represents the whole factory well

Production GM/DGM/AGM Job Responsibilities of Garments Manufacturing

  1. Responsible for daily production and work to achieve daily production target with buyer required quality standard
  2. Responsible for operation and operational staff control and management.
  3. Work for 100% capacity utilization and waste reduction
  4. Manage all task for smooth production , smooth final inspection pass and on time shipment
  5. Coordinate all department for smooth Garments manufacturing
  6. Closely monitor sewing and finishing getting best possible output and giving direction in floor.
  7. Setup sewing line, check consumption, costing and inventory.
  8. Strictly follow up hourly production and work for increasing
  9. Lead all production staff from the front and having good command on them.
  10. Ensure complete task to make finished goods from raw materials.
  11. Communicate always with merchandising team and solve every production related issues involved merchandising.
  12. Achieve maximum production by lowest cost
  13. Appointing and interviewing all production staff and their salary fixation.
  14. Guide IE team for increasing production
  15. Giving feedback to garments Buyer and Buyer QC
  16. Communicate with top management directly when need in any issues of his garments factory.

If you any more job list than above list, please don’t hesitate to write in the comment box. 

Written by

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

Linkedin: A.M. Amirul Islam

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Are We Focusing on Wages Increment and Efficiency Improvement Equally

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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

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Scan and Pack System in Apparel Industry

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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

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Trade Information of RMG Sector in Bangladesh

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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

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Knitwear RMG Sector Contribution, Export and SWOT Analysis of Bangladesh

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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

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Scenario of Bangladesh Woven Garments Sector

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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

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Current Scenario of Denim Market of Bangladesh

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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

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Costing of Knit Garments

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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)

COSTING OF KNIT GARMENTS PDFDownload

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba

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Packing List in Garments Factory

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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

Download Packing List format in Excel.xls 52kb Download
Download Packing List sample in Excel.xls 49kb Download

Written by

A.M. Amirul Islam (Washim)

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