Garment Productivity Management

1. Garment Productivity Management • The purpose of the course is to create ability among the participants to develop productivity improvement plans and their execution.

2. Rationale of Studying Garment Productivity • The only way of survival for Pakistan • Better Performance of Garment Industry

3. Textile Contribution in Economy of Pakistan • Exports 67 % of total exports (US $ 7.5 Billion) • Manufacturing 46% of total manufacturing • Employment 38 % of total employment • GDP 11 % of total GDP • Investment 31% of total investment • Market Capitalisation 8% of total market capitalisation • Taxes Rs. 4.5 Billion per Annum • Salaries and Wages Rs. 44 Billion per annum • Contribution to R&D Rs 148 million per annum

4. Significance of Garment Industry • Value added • Labour intensive • Use of infrastructure • Foreign exchange earning • Ancillary industry

5. Our position in international market • Table One • Table Two

6. Value added product and our garments • Designer wear • Ladies • Kids wear • Formal suiting • Formal shirts and trousers • Leisure wear • Made ups

7. What we are exporting? • Made ups • Major share bed sheets • Lowest possible price • Throw away products • Not of high quality • Daily used items

8. Why we are Exporting low priced Items? • Technology? • Designing ? • Machinery? • Raw Material? • Quota? • Duties?

9. Actual Reasons: • Lack of professionalism • Lack of transparency • Lack of skilled management • Lack of honest traders • Lack of commitment • Lack of infrastructure Or • Poor productivity

10. For improvement: • We have to study productivity since this is the only way to achieve honorable position • We can do a lot since:

11. Scope of Pakistan Textile Industry • Pakistan has 9% share in total world’s cotton production. • Pakistan is a major exporter of yarn and enjoying a share of 28 % in the total world yarn trade. • Pakistan has a 9.9% share in the total world export of cotton cloth. • Growth rate of clothing exports is quite encouraging. In 1970-71 clothing export (Bed Wear, Made Ups, Woven and Knitted garments) share was only 1.43% of the total Pakistan exports, which is 38.97% in 2003-04. • There are 64 million people between the age of 20 and 60 capable to work in a Labour-intensive industry And finally Pakistan has no other choice

12. Lecture #02 • Productivity Fundamentals

13. Garment Productivity Means? More production Less rejection More efficient Less labor cost Less pollution More profit Satisfied customer In time delivery High price

14. Increased output increased productivity • Profit and productivity are synonymous • Cutting cost improve productivity • Profit today and tomorrow are possible • Partial productivity improvement is worthwhile • Productivity applies only to production.

15. Productivity? • A mind set to produce more with less • An approach to keep planet intact • An effort to keep all stake holders smiling

16. Stakeholders • Client • Supplier • Government • Society • Employees

17. Confrontation in interests • Government --- more taxes • Customer less rate and quick supplies • Society less pollution, more employment • Owner --- more profits • Employees ---- more benefits

18. Target achievable or not achievable • Yes-----yes ---- yes --- • But how

19. Through Better Productivity • Productivity is a continuous growth phenomenon • Growth • Negative or positive • No chance of zero growth

20. Control and Growth • Growth is an inevitable phenomenon One has to control it and make it according to his or her desires and demands

21. Some Classical Productivity Definition • Productivity is the measure of how well resources are brought together in organizations and utilized for accomplishing a set of results. Productivity is the name of reaching the higher level of performance with the least expenditures of resources Mali

22. Productivity is measured by the goods and services produced by per unit of national resources.

23. The concept that productivity is a relationship between outputs from a given system during or over a given period in time, and inputs to that system during that same period, should be generic and universal Sink

24. Productivity is a comprehensive measure about how efficiently and effectively organisations satisfy the following five aims: • Objective achievements • Efficiency of the process • Effectiveness- • Comparability with other organisations • Trend- productivity measured over a period” Lawlor

25. Productivity is about making the most efficient use of all resources and gaining maximum added value from them” Prokopenko & North

26. Doing things right at the least possible cost in least possible time with the highest possible quality and to the maximum level of satisfaction of the customers and employees Ayesha Baig

27. Productivity is a road to competitive enterprises, the economic development of countries and welfare and well being of nations Gharneh

28. In a nutshell, productivity reflects results as a function of effort. If productivity improves, it means that more results are being gained from a given amount of effort. In a classical sense, productivity is defined as a ratio such that the output of an effort under investigation is divided by the input required to produce the output. Brinkerhoff and Dressler

29. Productivity is a measure of the capacity of individuals, firms, industries or entire economies to transform input into output. More specifically productivity is a measure of the rate at which output (of goods and service) are produced from given amount of input. IndustryCommission

30. Productivity is an approach, a mindset, and a way of thinking to do more with less by observing the business ethics, caring the risk of stakeholders and keeping the planet clean. • Mushtaq Mangat

31. Lecture# 03 • Garment Industry Practices

32. Garment Productivity Management A blue print for productivity improvement

33. Management of whole process • Input • Process • Output • Feed Back

34. Input • Raw material • Human Resources • Utilities • Time • Information • System • Support of society

35. Process • Merchandising • Planning • Procurements • Production • Finishing • Packing and export

36. Quality assurance • Quality control • Quality checking • Quality departments

37. Output • 14% rejected garments • Every fifth shipment by air • Cancellation of order • 13 hour average working hour • Under pressure • Job insecurity • No personal life

38. A few new industries in last 10 years, where as many closed down • Delay in salary • Long over due of suppliers • Bank loan problem

39. Reason: • Technical • Managerial

40. Technical • Not common • Industry is order bases • Order is confirmed after having approval of samples • All technical problems are solved at sample level • But still there are problems

41. Sample is ok but bulk production problem • Small quantities are under control where as big quantities are problematic • Parameters are noted properly noted during sampling • Many things are over looked during sampling

42. Why so? • Want to get order at any cost • Show efficiency before customer • Do not make customer unhappy • There is a gap in production • Want to meet over heads • Want to achieve scales of economies

43. Managerial • Top management • Middle management • Front line management • Workers

44. Top Management • CEO • GM

45. Top management and low productivity • Duty of top management • 1- Resource availability • 2- Helping in difficult situation • 3- Motivating • 4- Monitoring • 5- Guiding • 6- Leading in difficult situation

46. But what they do? • Raw material, Very common --- no cushion of raw material • Late delivery of accessories • Poor quality of accessories • Short quantity of accessories • Seen many times garments are packed and waiting for cartons

47. Guidance and helping • Helpless • Only two person qualified in textile not in garments • Shortage of funds • No money for storage • Working on zero inventory cost but with poor relations with suppliers

48. Motivation • No long term association • Termination quickly • Harsh wording • No friendship and interaction • No dine together • Lack of trust on employees

49. Result: • No feel of participation • Lack of commitment • Looking for other jobs all the times • Back biting very common • No sense of ownership • No work pride

50. Middle Management • Not qualified in textile • Learned on job • Lack of confidence • Application of authority • Spend more time in office calling people working on floor • No help in work • Getting job by order