2012 oct dr lynne hammond

RESTRICTED October 2012

Original: English

SUPPORT TO BEST PROGRAMME

BANGLADESH

Better Work and Standards EEBGD10002/10A02/10B02

Technical report: Mission 3 of the LCF Experts National Performance Cluster Development

Prepared for the BGMEA/BUFT/EPB/MOC

By the United Nations Industrial Development Organization Acting as executing agency for the United Nations Development

Programme

Based on the work of Dr Lynne Hammond

Project Manager: David Yuen-Hoi Lee

United Nations Industrial Development Organization -Vienna

__________________

*This document has not been edited

BEST Better Work and Standards Programme October 2012 Mission 3 Report Dr Lynne Hammond 2

Contents of Report

Chapter 1 Summary and introduction to BEST

Chapter 2 Introduction to Mission 3

Chapter 3 Consultancy activities during Mission 3

Chapter 4 Recommendations and Actions – Ways forward for NPC

Appendices

Appendix 1 – List of Powerpoints developed

Appendix 2 – Notes from the Cluster Forum

Appendix 3 – Assessment of the three technical centres

All documents uploaded to Shared DropBox

Power points developed for this mission:

1. Cluster Forum

2. Introduction to Clustering, Definitions, Concepts and Principles

3. Fashion and Textile Cluster Case Study – Turkey

4. Apparel Production Clusters – China

5. M.J.Porter’s Diamond Analysis


Abbreviation BATC Bangladesh Apparel and Textile Cluster BEST Better Work and Standards Programme BGMEA Bangladesh Garment Manufacturers & Exporters Association BKMEA Bangladesh Knitwear Manufacturers & Exporters Association BTMA Bangladesh Textile Mills Association BUFT BGMEA University of Fashion & Technology BUT Bangladesh University of Textiles BWTG Better Work in Textiles and Garments CEPD Centre for Export and Product Development GOB Government of Bangladesh iART Institute of Apparel Research & Technology LCF London College of Fashion MBA Masters of Business Administration MOC Ministry of Commerce MOT&J Ministry of Textile and Jute NITTRAD National Institute of Textile Training Research and Design NPC National Performance Cluster RMG Ready Made Garment SME Small & Medium Enterprise UNIDO United Nations Industrial Development Organization


Chapter 1 – Summary Explanatory Notes

£1 130.34 TAKA (31st October 2012) BGMEA Bangladesh Garment Manufacturers & Exporters Association BUFT BGMEA University of Fashion & Technology RMG Ready Made Garment BLOG Web log and a web page with chronological entries WIKI Webpage that can be edited by its members CEPD Centre for Export Product Development BEST Better Work and Standards Programme

Title of the Project: BWTG- Better Work in Textiles and Garments- Component 3

Objective and Duration of the Activity The duration of the activity is between October 2012 and November 2012. This included 7 days home based and 6 days based in Dhaka. The field trip took place from Saturday 13th October to Friday 19th October 2012. This the third mission to Dhaka under the new BEST Programme. The BEST programme objectives are to:

1. Develop a National Performance Cluster (the focus of this mission) 2. Develop international strategic alliances 3. Develop Education and Training for the Cluster/Sector 4. Develop capabilities of the Cluster Trade Associations and Ministries

The BEST Baseline Study and the Inception Report have guided our Mission objectives and training programmes to be delivered.

Introduction to the LCF Expert Report The LCF consultancy report has been produced that communicates the actions, findings and outputs. In addition, in order to reduce the use/quantity of paper we have produced a dropbox to upload all of the resources and powerpoints that have been developed for Mission 3. It is aimed at knowledge transfer and sharing so that it will benefit that all the relevant associations, students and staff. Mission 3 – October 2012 This is the third mission under the BEST programme. One LCF experts have been to Dhaka to deliver the following short courses to CEPD companies. Expert in Garment Cluster Development The priority of this mission was to develop shared understanding of why, what and how Clustering Strategies can improve the competitiveness and innovation of the Bangladesh Apparel and Textile Sector. The priority of this mission was:

• To develop a create a cluster of competent technical research and development involving BUFT/CEPD and iART;

• Propose a road map to develop a National Performance Cluster, and conduct a strategic study to develop a five year business plan for NPC;

• Deliver cluster forums to build the alliances and links between the different sectors for mutual benefits;

• Explore these centres to provide co-ordinated cost effective demand driven services to the industry which includes market studies, training and R&D, PD&D, market analysis, industry, business planning, information consultancy and bureau services to industry

Main duties Expected

Duration

Location

Expected Results

1. Assess the two technical centers BUFT/CEPD, iART launched by BGMEA and BKMEA respectively to provide

2.0 Home Mission Preparation


training and technical services to the garment and knitwear sectors

based

2. Proposing a road map for three years for developing National Performance Cluster (NPC)

2.0 Home

based

Develop a report on activities that have been

undertaken in different other countries for

developing National Performance cluster

3. Deliver cluster forums to build the alliances/links between the different sectors for mutual benefits.

2.0 Dhaka Review and reflection on achievements and how

clustering is improving business growth

4. Explore these centers to provide coordinated cost effective demand driven services to the industry which include market studies, training, R&D. PD&D, market analysis, business planning, information consultancy and bureau services to industry

3.0 Dhaka Workshop delivered and handouts distributed

and uploaded to the website of CEPD

5. Hold relevant progress meetings with BUFT, iART and UNIDO and present recommendations from the mission

2.0 Dhaka Minutes of meetings and list of

recommendations

6. Write up report for Mission and conduct web conference session with UNIDO to discuss report and recommendations

2.0 Home

based

Report submitted to Vienna

Meeting conducted and actions and

recommendations agreed

Total days 13 days


Chapter 2 - Introduction to the Mission 3

Expert in Garment Cluster Development The report has been written by Dr Lynne Hammond as a result of a one week mission to Dhaka from Friday 12th October 2012(see Job Description). The activity began in mid-September 2012 with 4 days work in the UK.

Outputs of the days in the UK – 4 days

Technical Centres Assessment

• Questionnaire for assessing iART/CEPD and NITTRAD • Desk research into their websites to assess their communication strategies

Research/Presentations for Cluster Workshop

• Introduction to Clustering; Definitions, Concepts and Principles • Introduction to Porters Diamond Model • Case Study 1: Fashion and Textile Cluster in Turkey • Case Study 2: China Apparel Clusters

Presentations for Cluster Forum Cluster Forum Rationale PP that outlines the half-day objectives and goals

Outputs for the 6 days in Dhaka • Faculty /UNIDO meetings • Reading Lists for Clustering • Meeting with Chairman of BUFT to discuss recommendations • Meeting with Vice President/Member of BUFT to discuss quality management and staff development • Meetings with iART/CEPD/NITTRAD to explore their current business offerings • New networks being developed and invited to the Cluster Forum: Aarong, Small Business

Foundation, Mohammidi Group, Better Stories Asia

Final Outputs • Final Report; Objectives achieved

Overall the objectives were achieved. However more work needs to be undertaken to fully understand the business operations of the three technical centres in more detail. There are no business plans in place to inform the technical centres future thinking and limited measuring of their effectiveness in industrial developments. A set of key performance indicators need to be put in place to inform This must be a priority for the next twelve months to put in place business objectives and goals if the NPC is to be successful. This needs more follow-up work to gain a comprehensive view of the potential of the centres, and how they create new business opportunities for the sector.


Chapter 3 - Consultancy activities conducted by the international experts at BUFT during the Mission 3 visit Saturday 13th October 2012

Meeting with John Smith and Munira Rahman to go through the week’s timetable and discuss in detail the different activities and the invited audiences. Sunday 14th October 2012 – Cluster Workshops AM Cluster Workshop: Introduction to Clustering: Definitions, Concepts and Principles Attendees: Representatives from NITTRAD, iART, CEPD, and other BUFT faculty academics – see Appendix 1 Brainstorming/Interactive session/SWOT PM – One to one sessions with iART/CEPD to assess the technical centres for their current business offers and identify new cluster services for demand driven business environments Monday 15th October 2012 – Cluster Workships AM Cluster Workshop to the MBA students and BUFT academics Porters Diamond Model and SWOT/PESTEL of Bangladesh Apparel and Textile Industry PM Develop the Cluster diagrams and tools for communicating the initial proposals for developing the NPC. Tuesday 16th October 2012 Prepare for the Cluster Forum – Develop initial ideas and proposals for the NPC Powerpoint presentation on Wednesday PM – Preparing the cluster forum – handouts/room/discussion on the group sessions/update meeting with CEPD staff – Rezwana and Sunny Meeting with Muzzafar Siddique/Reaz Bin Mohammed to review progress/follow-up since last mission in January 2012 – Tina Fox/Lynne Hammond Wednesday 17th October 2012 – Cluster Forum AM – Pre meet and greets with new contacts and networks. Better Stories Asia – working on mapping the Fashion industries/Bangladesh – with British Council, and LCF to explore the start-up/SME business environment Best program of BWTG, UNIDO, organized a workshop on Cluster for RMG sector; in association with Centre For Export and Product Development, BUFT. The focus was to discuss the prospects and of applying Cluster method and its implementation in RMG sector of Bangladesh. There were forty seven participants at the forum. Those who participated at the forum were from the Ministry of Commerce, BUFT, Ministry of Textiles and Jute, UNIDO, Aarong, Bizcube, iART, NITTRAD, Muhammadi group of industries etc. The forum was chaired by Mr. Muzaffar U.Siddique, Chairman, Board of Trustees, BUFT. PM – Hold meetings with Principal of BUFT to review Fashion Design Curriculum and meet with staff to identify what has been implemented into the classroom. Review the CAD/CAM laboratory and the relationship to the fashion design process. Development of the press release for the Cluster Forum for newspapers Thursday 18th October 2012 AM Meeting with the British Council – briefing on the Cluster Development Discussion on possible EU Funded projects with UNIDO/BC and LCF PM Working at the UNIDO office to review the evidence and data from the cluster workshops and forum Business Cards for Cluster Network Lists Attendees at the Workshops/Forum Uploading of Powerpoints that have been used during the week onto Dropbox Mentoring – for using Dropbox as a sharing documents between UNIDO/BUFT/OTHERS


Evening: Meeting with Purple Magazine CEO/Mishu Rahman – Style Guru TV Reality show being Friday 19th October 2012 Fly back to UK

Chapter 4 – Recommendations and Actions from Mission 3

This section explores the following areas:

1. Why Clustering matters? 1.1 Cluster Definitions 1.2 Cluster Stakeholders 1.3 Cluster Lifecycle 1.4 Cluster Benefits for Companies 1.5 Cluster Strategies for success

2. Bangladesh National Performance Cluster for Apparel and Textiles 2.1 Key challenges for the Sector/SWOT 2.2 Key opportunities for the Sector

3. What lessons can be learnt from other countries Apparel and Textile Clusters? 3.1 Turkey – Fashion and Textile Cluster 2006-2008 3.2 China – Apparel production Clusters

4. What management structures need to be established to drive and co-ordinate a Bangladesh NPC?

4.1 Cluster Benefit Analysis - Mapping the key stakeholders in the Bangladesh Apparel and Textile Cluster (Cluster workshops) 4.2 Cluster Value Analysis – creating dialogue and discuss to develop shared values (Cluster Forum) 4.3 Cluster Co-ordination/Link Analysis – Assessment of the 3 Technical Centres

5. The Proposed BATC Cluster Road Map – Ways Forward 5.1 Short Term Action with Quarter Milestones 5.2 Cluster Management Model 5.3 Cluster Marketing Strategy 5.4 Long Term Vision and Investment Reading List 1. Why Clustering matters? The purpose of this mission was to explore how clustering strategies could be used to improve competitive advantage and drive innovation. Clustering is seen as a way of economic growth development through using collective efficiencies and joint actions between a number of partnerships and networks. Clustering is expected to provide better value chain efficiencies, foster co-operation and collaboration among different players in the industry. Filling in the gaps in the value chain improves the technical and technological capacity of a cluster. Fostering co-operation and collaboration among the cluster players improves the social capacity of the cluster. Clusters are geographically proximate groups of interconnected companies and associated institutions in a particular field linked by commonalities and complementariness. Clusters encompass an array of linked industries and other entities important to competition which includes governmental and other institutions such as universities, standard setting agencies, think tanks, vocational training providers and trade associations (Porter 1998) Cluster theory puts forward the argument that the rationale for active cluster promotion is needed because of changing markets, policy and system failures. Practice shows that cluster formation almost always increases value added production and competitiveness of the business operating in the cluster. A study from 2003 of 260 cluster initiatives around the world shows that as many as 85% of cluster initiatives were rated as having increased the competitiveness of businesses within the cluster (The Cluster Initiative Greenbook, Solvell, Lindqvist, and Ketels) http://ictcluster.bg/en/eu-cluster-initiative. The rationale for promoting clusters and catalyze cluster formation and development of clusters because they generate innovation and thereby competitiveness and innovation which leads to profits, income, and jobs.


1.1 Cluster Definitions

Porter defines clustering as “Geographic concentration of interconnected companies, specialised suppliers, service providers, firms in the related industries and associated institutions (example universities, standard agencies and trade associations) in particular fields that compete but also co-operate.” (1998) Department of Trade and Industry UK defines clusters as groups of inter-related industries. They have two elements; firstly firms in the cluster must be linked. Secondly, groups of inter-linked companies locate in close proximity to one another. The links between firms are both vertical, through buying and selling chains for example and horizontal through complementary products and services, the use of similar specialised inputs, technology or institutions for example. ( 2004 A practical Guide to Cluster Development DTI) http://ebookbrowse.com/2004-a-practical-guide-to-cluster-development-uk-dti-pdf-d215902753 Forti (2006) explores the economic advantage of clustering: Collective Efficiency (CE) stem from a series of factors, which can be traced, back to external economies and joint action. External Economies are advantages that accrue to firms as an unpaid side effect of the presence and activities of other firms and entities, due to factors such as availability of skilled workers, networks of specialist suppliers of goods and services, traders linking the cluster to external markets, professional associations and so on. JA is a vertical when it links producers, their suppliers and subcontractors, traders and buyers. Forti identifies four types of updating strategies: process upgrading, product upgrading; functional upgrading and intersectoral upgrading. The upgrading process depends on the ability to innovate, and innovation occurs when firms are capable of accumulating new knowledge that is capable of learning. (http://213.232.21.103/en/programme.html) 1.2 Cluster key actors/stakeholders

• Businesses and the business organizations – because new ideas/innovations are commercialized by businesses

• Research, knowledge and training institutions – by providing and developing knowledge, science and technology for commercial exploitation

• Government and government agencies – because policy incentives impacts on the environment for clustering and competitive upgrading.

Clusters are most effective when the initiatives build upon and add value to existing linkages among companies, knowledge institutions and governments. The roles of stakeholders in a cluster The different actors in a cluster become stakeholders when their presence and activities impacts on the conditions of other actors in the cluster. Businesses are the core of the clusters and their competitiveness. Business champions, networks, groups and associations all play important roles in cluster initiatives by providing linkages between individual businesses, showcasing good/effective practices, information on challenges/opportunities and information on impact and results of various incentives.


Research, knowledge and training institutions impact on businesses’ competitiveness by developing new knowledge; dissemination of existing knowledge for commercial exploitation, provision of intelligence on markets and trends, and the provision of skilled labour. Governments impact on business competitiveness through providing dialogue and policies; training policies, promotion of international linkages, developing of the general enabling business environment 1.3 Cluster lifecycle

Clusters pass through different phases and these will differ depending on the specific context and the pace of transformation. Waelbroek-Rocha and SRI International 2001

Elizabeth Waelbroeck Rocha examines why do companies cluster and she explores the benefits of cluster for companies. (see weblink http://www.tci-network.org/activities/delhi_presentations_introductoryday)


1.5 Cluster Strategies for Success

More research into clustering success stories needs to be undertaken to develop deeper understanding of the critical factors that influence and affect the performance of clusters. More work to be undertaken to explore in more detail success stories.

2. Bangladesh National Performance Cluster in Apparel and Textiles The Bangladesh Ready Made Garment Sector has undergone dramatic changes over the last three years due to the global business trends that require fast fashion and agility supply chains and suppliers having to manage difficult global business conditions to be able to offer added value products. The collective strength of the trade bodies and industrial associations associated with the Bangladesh Apparel and Textile Sectors, could position Bangladesh as a sourcing destination that will be able to compete with other manufacturing economies not just based on low costs but on added value products. Recent shifts in manufacturing destinations away from China to lower cost countries have enabled Bangladesh to take advantage of new business opportunities. However, to sustainable these new business opportunities the RMG sectors face a number of challenges to maintaining new customers and retain their growth position through innovation. Despite the increasing importance of Bangladesh as a manufacturing hub, more research has to be undertaken to understand how clustering can be used as a tool to positioning Bangladesh as a world-class manufacturing destination. 2.1 Key challenges to the Apparel and Textile Industry


The McKinsey report outlines the key challenges for growth with particular emphasis on the nature of retailer/manufacturer business. The report identifies 5 areas:

1. Infrastructures – transport and utilities supply, congested roads 2. Compliance – achieving ethical labour standards, higher levels of transparency, environmental

compliance 3. Supplier performance and workforce supply – buyers looking for fashionable and sophisticated

products – need for skilled workers/managers 4. Raw materials – improvements in verticalization 5. Economy and political stability – unrest and strikes, corruption

The report also suggests ways to overcome these challenges, through government needs to plan ahead and address the infrastructure challenges, suppliers need to think beyond basic production offer to improve better compliance and management know- how, and buyers to support suppliers through better interfaces, and building closer supplier relationships. 2.2 Key opportunities for the Sector through Clustering More research needs to be undertaken to explore the opportunities for business growth. It has been outside of this mission to undertaken a comprehensive opportunity analysis. 3. What lessons can be learnt from other countries Apparel and Textile Clusters?

Two countries have been explored to identify the clustering approaches and how clustering has influenced the economic growth of the sectors. The Turkey case study is based on experience, and the China case study has been developed from secondary/desk research. 3.1 Turkey Fashion and Textile Cluster (This text has been taken from website) 27.01.12 http://www.avrupa.info.tr/funding-opportunities/eu-funded-programmes/success-stories/success-stories-single-view/article/fashion-and-textile-cluster-project-will-boost-textile-sector-in-turkey.html The Fashion and Textile Cluster Project aims to increase international competitiveness of SMEs in the fashion and clothing sector. The project, financed by the European Union, is crucial to enhance the export capacity of the sector. Cluster strategy provides the ground for firms to share expertise with their counterparts, as well as to enhance their employment, income and export capacities. The project is the first of its kind in Turkey, and has inspired larger projects. There are already 20 other sectors waiting clustering. Budget: 13 Million € Beneficiary: Istanbul Textile and Apparel Exporter Associations (ITKIB) Project Length: 2005-2007 The Fashion and Textile Cluster Project, financed by the pre-accession funds of the EU, aims to increase international competitiveness of SMEs in the Turkish textile and clothing sector. This is one of the engines driving the Turkish economy. The project aims to minimize costs in the Turkish textile sector, a highly competitive environment since the elimination of textile quotas in 2005. The necessary elements for the textile and clothing industry to maintain its high performance standards are: investment in research and development, high quality production, and development of fashion designs and trademarks. The Fashion and Textile Cluster Project is designed to respond to these needs and increase networking among SMEs at local, national and European levels. The project has made significant steps to try and overcome difficulties in the sector, namely financial difficulties and lack of research and development activities. Beneficiaries of the 13 million € budget project include SMEs in the textile and clothing sector, who are represented by Istanbul Textile and Apparel Exporter Associations (ITKIB). Besides its contributions to the sector, the project is expected to ease the process of adaptation to the European Charter for Small Enterprises. According to the clustering method, SMEs in the textile and clothing sector work within an environment where they interact with each other and develop new strategies. Clustering is essential for the textile and clothing sector to enhance its competitiveness and quality, especially important because it is a major pillar of Turkish exports. In addition, certain institutions are established to enhance the capacity of the sector. These institutions provide technical assistance and consulting services to SMEs and support them in tackling issues like improvement of product quality and offer. What is Clustering? Clustering refers to the regional concentration of firms operating in the same sector with suppliers of raw materials and services. Cluster strategies provide the ground for firms to share expertise with their counterparts as well as to enhance their employment, income and export capacities.


Three institutions have been established within the scope of the project, directed by the Cluster Coordination Agency.

Fashion Institute Research and Development Centre Consultancy Centre

Like the firms in the textile and clothing sector, these three institutions work in coordination as parts of a cluster. For example, the Fashion Institute provides qualified labour to the Research and Development Centre and Consultancy Centre, while the students of the Fashion Institute can enjoy the services of R&D and consultancy. The project involves two phases. In the first phase the needs of SMEs were identified through the clustering analysis of the textile and clothing sector. Following this process, establishment of institutions that would support the textile and clothing sector was completed. As listed above, these institutions are the Fashion Institute, Research and Development Centre and Consultancy Centre and lastly the Cluster Coordination Agency who coordinates these three institutions. The second phase of the project is about providing investment support to these institutions, and it is . almost completed. Project leaders have confirmed that investments are almost complete and SMEs are waiting for the equipment ordered in accordance with their needs. Other Sectors will also Work in Clusters The Fashion and Textile Cluster Project is the first clustering project undertaken in Turkey. Cooperation of SMEs with each other and with related professional organisations leads them to create value added and develop strategies for the future of the sector, thus enhancing their competitiveness. Following the achievements in the Fashion and Textile Cluster Project, other sectors are expected to form clusters benefiting from the experiences of this project. The Undersecretariat for Foreign Trade (DTM) has initiated a larger project which will begin after identification of 20 suitable sectors for clustering following a cluster analysis in each sector. Impact of the Project will be Considerable Sector Manager Mustafa Fazlıoğlu, from the Delegation of the European Commission to Turkey, emphasises that the project is the first clustering experience in Turkey. He continues, “In spite of this, goals have been achieved after a successful training process”. According to Fazlıoğlu, another significant point about the project is that it has been conducted directly with the sector without state intervention and it will have a significant impact on the textile sector as well as other sectors. After underlining the significance of the textile sector in terms of employment, income and exports, Fazlıoğlu states that the timing of the project is very appropriate in the sense that the need for restructuring the Turkish textile sector emerged after the elimination of textile quotas in 2005. For Fazlıoğlu, there are three reasons why the project has become very successful: large-scale interest for the project, allocation of sufficient labour and resources and finally, a high level of participation. For him, these reasons indicate that ITKIB will continue working on the project successfully. Lastly, Fazlıoğlu reminds us about the initiation of new projects by DTM and argues that clustering is becoming widespread and has already become a state policy. Largest Project Conducted in the Sector ITKIB Project Coordination Unit Director Ece Narcy says “The project is the largest project conducted in textile and clothing industry and it would boost the sector.” For Narcy, there is no future for the textile industry without innovation and design. According to Narcy, the main reason behind the success of the project is that it is conducted in accordance with the needs of the sector unlike other on-the-desk projects. Detailed analyses have been made to identify necessary instruments for SMEs and necessary institutions for improvement of the sector. Narcy then argues that the project will be a good example of clustering for other sectors. Everyone is Content with the Result Representatives of the textile and clothing industry are also happy with the outcomes of the project. One example is the owner of the Sunset Swimwear Kemalettin Güneş. He believes the Turkish textile sector will supersede leaders in countries such as Italy and England. Güneş states that the project has already produced concrete results and he is hopeful about future graduates of İMA. Another sector representative, Cevdet Karahasanoğlu, is the owner of the Pameks Textile Company and also vice-president of Turkish Clothing Manufacturers Association. Karahasanoğlu thinks that designers who would be trained by the opportunities established as part of this project would be close to the textile industry unlike graduates of other fashion schools. He suggests that broadening cluster activities to involve production processes rather than focusing solely on design-sale-marketing would be greatly beneficial for the sector. Although the 3 centres where established and resourced – one observation of the this FTC project has been that the R&D Centre has been closed down, as companies did want to share their innovation/IP through this


collective body. IMA is thriving and is providing international fashion education that aims to ensure that they will develop world-class fashion designers of the future. 3.2 Apparel Production Clusters in China (Desk Research) According to LI & Fung Research Centre Industry Series 2007 China are the world’s largest producer and exporter of textile and apparel. With its abundant supply of low-cost and skilled labour, the country has attracted textile and apparel manufacturers from around the world to set up production bases. The textile and apparel clusters are primarily located in the coastal regions. Since raw materials and other processed apparel products are much cheaper in China and their qualities are increasingly up to the global standards; the textile and apparel clusters in China have become principal sourcing bases for textile and apparel products. However, the current development status of the apparel industry, like many other industries, is characterized by surging operational costs, increasing competition and reducing profit margin. As a result, more apparel manufacturers are moving out from the relatively high-cost coastal areas to the inland regions. Relocation of the apparel industry/clusters is being observed. There are three key characteristics of the T&A Clusters in China: (1) Geographically concentrated along coastal regions The majority of textile and apparel clusters are located in the cities along the coastal provinces of Zhejiang, Guangdong, Jiangsu, Fujian, Shangdong and Hebei. Exhibit 6 shows the major textile and apparel clusters in China. As shown in the diagram, most of the apparel clusters are located in Zhejiang and Guangdong; as for the textile clusters, most of them are concentrated in Zhejiang and Jiangsu. The coastal regions have well-established intra-regional logistic infrastructures and strong linkage with the outside world. These facilitate the movement of apparel products within China as well as to other countries. (2) High degree of specialization Most of these textile and apparel clusters demonstrate high degree of specialization and has emerged as leading centre for certain products. Some prominent examples include the leisurewear cluster in Shaxi town in Zhongshan, Guangdong, the children’s wear cluster in Zhili town in Huzhou, Zhejiang, the light textile cluster in Shaoxing, Zhejiang, etc. (3) Commodity markets located in or near the clusters Today, wholesale markets or commodity exchange markets mostly located in major apparel clusters. They act as major distribution channels for mass apparel products produced in the cluster. The majority of the products sold in these markets are low-and-mid-range unbranded garment and clothing. Prices of these products usually range from a few yuan to hundreds of yuan. According to the Statistical Yearbook of China Commodity Exchange Market, in 2005, there were 2,525 textile, apparel, shoes and headgear commodity exchange markets with an annual turnover exceeding 100 million yuan in China. Within these markets, there were over 1.4 million stores selling various types of apparel, shoes and headgear products; the total turnover of these commodity exchange markets amounted to 2,628 billion yuan. 4.What management structures need to be established to drive and co-ordinate a Bangladesh NPC?

To arrive at the a Proposed Road Map; a number of workshop/ forums, interviews where held with representatives from a wide range of different trade assoications/bodies to shape this development of the NPC. This methodology has informed the 12 month action plan suggested in this report.

• One workshops was conducted on Introduction to Clustering – NITTRAD • One workshop was conducted to MBA students - Diamond Analysis • Cluster Forum was held to explore what are the ways forward • Questionnaires sent to the three technical centres

4.1 Cluster Benefit Analysis and Mapping the BATC

During the Clustering Workshop with iART/CEPD and NITTRAD representatives the participants used a SWOT to begin to identify the challenges/opportunites that Bangladesh would face in the future.

In addition the group started to map out the different stakeholders in the cluster and began to explore the benefits to these three stakeholder groups. A cluster mapping diagram was produced from this workshop.


From this workshop the Mapping Diagram was created:

4.2 Cluster Shared Value Analysis - Cluster Forum Wednesday 17th October - See

appendix 2 for the minutes Over 47 participants attend the half day workshop to explore how to develop the cluster to support the apparel and textile industry. The aims of the cluster forum was to create a dialogue and explore ways forward on how this development could be of benefit for the industry and what are the shared values between the different stakeholders.

• What management structure is needed to achieve the goals and objectives of clustering to drive competitiveness?

• Who will manage the operational strategy for developing the cluster? • Who will oversee the strategic development and goals of the cluster? • What role will technical centres play CEPD, iART and NITTRAD play in achieving the clustering

objectives?


• What type of marketing channels will be developed and who will manage these activities? Cluster Brochure, Cluster Website,

• What role will education, companies and government play in achieving the clustering goals? • What role will UNIDO play in NPC developments? • Who will measure the impact of the cluster performance and achievements? • How will new skills set/capabilities be identified that can result in better innovation, R&D and

advanced supply chain management?

4.3 Cluster Co-ordination/Link Analysis - Assessment of the three technical Centres – See appendix 3 See appendice 3 for the overview of the services and how they are managed. More work needs to be undertaken to explore in more detail how the centres could be managed through the cluster development and each centre needs to have a business plan in place to see the potential benefits and opportunities for growth. However from the questionnaire, there is no sharing of resources and knowledge to drive cost effeciences and respond to demand led changes to the industry. Through the clustering development it is proposed that there is 3 Cluster Pilot projects that begin to share common challenges. It is suggested that the three themes below are a starting point for bringing together the three centres and engaging in research to explore these trends:

1. New technologies for product development (Rapid Prototyping, Digital Fashion Tools and Body Scanning/3D Visualisation)

2. Using market intelligence to drive new business opportunities (Exploring the new business models that are influencing consumer choice and lifestyles, etailing, online shopping, handmade/limited editions, mass customisation)

3. Sustainability challenges for the Bangladesh Apparel and Textile Industries – what are the ways forward.(exploring common challenges, water, waste, energy efficiencies, fair trade, and other ethical/environmental projects)

5.Recommended Actions and Ways forward 5.1 Short Term Action Plan with Milestones Nov, Dec, Jan Feb, March,

April May, June, July

Aug, Sept, Oct

Who

Cluster Website Linked to UNIDO BEST site

Write content Promote and launch website

Update with news

Update with news

JS/MR and Shaheen

Cluster Brochure Write content/Design brochure

E-brochure Circulate Circulate UNIDO/JS/Munira

Cluster Research reports

MBA Diamond Analysis

MBA Dissertations on Clustering

Write joint papers

Deliver papers at conferences

BUFT/MBA Students

Cluster Network List Produce Excel spreadsheet for mail outs and information

Update Update Update Cluster Co-ordination Group/Cluster Manager

Cluster Co-ordination Group

Monthly meetings to kick start new cluster projects

Monthly agendas and minutes circulated to Executive Board

Monthly Monthly Membership to be defined/UNIDO/BUFT

Cluster Executive Board

Define membership and steering group

Cluster RoadMap investment

Cluster RoadMap staffing and resources

End of Year Report

Membership to be defined – David Holbourne/John Smith/Muzzafar Siddique

Cluster Pilot Projects Explore funding and

Write Proposals

Deliver Pilot

Evaluate the benefits

Cluster Co-ordination Group and Cluster


potential areas of R&D

Projects of Clustering

Teams

Cluster Conference/Workshops

Plan event, topics and speakers

Finalise topics and send out invites

Hold cluster conference large scale event

Followup reports and actions for year 2 of Cluster

TBC

5.2 Suggested Cluster Management System to drive and support the establishment of the NPC – Based on Cluster Forum Dialogue To drive the cluster development and achieve the year 1 objectives it is recommended that the following 3 key management groups are established:

• Executive Cluster Board – Managing the Vision BGMEA/BKMEA/BTMA – (10-12 champions) meet every 3 months to receive the report from the Cluster Co-ordination Group.

• Cluster Co-ordination Group –Membership: BUFT, NITTRAD and iART representatives plus the technical centres (CEPD/iART/NITTRAD) training managers. In the first year of creating the cluster development, it is recommend that a Cluster Manager is identified and that person is responsible for working with the Cluster Project teams to ensure staff are available and are supported during the first 6 months to get off the ground. It is also important for information flows between Executive Cluster Board and the Cluster Project Teams on the ground. Recommend that Munira Rahman takes up this position for 12 months to kick start the clustering strategy, supported by a CEPD Manager (this could be the Rezwana who is the newly appointed Manager at BUFT) This could be 2 days a week to co-ordinate and support the Cluster Manager.

• Cluster Project Teams – Team leader allocated to each of the three centres to communicate to the CCG new projects, R&D development and evaluate the benefits to companies.

Role of education/universities – create collaborations with International Universities to drive new research projects – knowledge and product topics. Develop short course programmes, and training programmes that are relevant and address future skills gaps. Role of Companies – to engage with education to inform and collaborate with new products/services Role of Governments – to support companies/training incentives and provide grants for R&D projects. More work needs to be undertaken to fully explore and define roles and responsibilities


Overview of the Cluster Management Decision Making/Vision Management

BATC Recommendations for Cluster Management Teams

Cluster Executive Board

Organisation Name Responsibilities BUFT Chairman Muzaffar Siddique Chair of the Cluster

Executive Board BUFT Vice Chancellor/ TBC BUFT Principal Nabi Khan NITTRAD Principal

Dr Engr. Md. Humaun Kabir

iART/BKMEA Rupali Biswas UNIDO David Holbourne UNIDO John Smith BTMA Head/VP BGMEA Head/VP

BKMEA Head/VP

Cluster Co-ordination Group (CCG)

Organisation Name Responsibilities/To be discussed during first meeting

UNIDO Munira Rahman Co-chair for CCG CEPD/BUFT Rezwana Ahmed iART Project Manager/Rupali


BTMA Project Manager BUFT Academic NITTRAD Project Manager Companies Textile, Apparel, Knitwear

Representatives from 3 companies from each sector

Cluster Teams/Pilot Projects

Organisation Name Responsibilities – To be discussed during first meeting

Cluster Team 1 BUFT Fashion Academic BUFT CAD/CAM Academic iART Trainer NITTRAD Trainer Company Representative

Research into New Technologies for Product Development – Rapid Prototyping/Sampling Innovations

Cluster Team 2 BUFT Marketing/Business Academic iART Trainer NITTRAD Trainer SME Foundation

Market Intelligence to drive new business opportunities

Cluster Team 3 BUFT Sustainable Academic iART Trainer NITTRAD Trainer Company Representatives

Sustainable Apparel/Textile Challenges for the Bangladesh Industry

5.3 Cluster marketing strategy – Digital and F2F Over the next twelve months, a cluster digital and F2F marketing strategy needs to be developed with a team of experts who can drive the communication objectives. Showcasing and online/off line platforms must be created to present the Clustering Vision and Strategy. All marketing materials must be produced in digital/printed formats (e-flyers/brochures) and the use of social media channels such as Twitter, FaceBook, Linkedin must be used to trigger and tease new networks and partnerships that are the essential for driving business opportunities. In addition, there must be an International Strategy underpinning the Local Cluster Strategy to stimulate new markets, new products, new partnerships, and new networks. The international dimension is critical for global business environments, using digital and virtual formats. More work needs to be undertaken to develop a cluster marketing strategy. To manage the cluster marketing strategy it is recommended that UNIDO play an important part in the first stage of cluster communication development to oversee and ensure that various marketing tools are produced to the right standards for international markets/networks. In addition, there has to be a commitment to communicating internally and externally cluster success stories to showcase how clustering has made an impact on profit and jobs. A website needs to be established or a sub site linked to UNIDO or BGMEA or BUFT and managed regularly to keep news up to date and to digitally communicate to the different players/links/networks on what is • Cluster Website/Cluster Brochure • Cluster Network and Contact Lists – New people/networks establish • Clustering Conference – May 2013 • Articles/success stories to feed to press/newspapers

5.4 Long Term Planning for the BATC – Building the Brand Strategy

The long term goals must be to build a strong brand identity that communicates the values and strengths of the Bangladesh Apparel and Textile Industry as a pioneering manufacturing hub servicing global retailers needs and requirements. The BATC has to demonstrate that is able to integrate R&D into its business


strategies and is innovating and researching virtual and rapid prototyping, innovating new materials and products, and using digital technologies to improve speed to market, product quality and affordable price points. Bangladesh Apparel and Textile industry Unique Selling Point (USP) has to be the capacity and capabilities to offer fast fashion/agile supply chains, with sustainable/ethical and environmental processes and products, and offer design solutions for fashion ranges/collections. (See Sri lankas Garments with Guilt Promotional Strategy) More work needs to be undertaken to establish a new brand identity that communicates the USP and differentiation strategy of the cluster.

Cluster Reading/Resource List

KyeongAe, C, et al (2011) A Comparative Analysis of the competitiveness of the Readymade Garment

Industry Clusters in Delhi, Dhaka and Colombo, Journal of Competiveness, January pp

UKDTI (2010) A Practical Guide to Cluster Development

Zhang, Z et al (2004) How do Industry Clusters Success: A case study in China’s Textiles and Apparel

industries, Journal of Textile and Apparel, Technology and Management, Vol 4, Issue 2, Fall 2004

Kutluksama, M et al (2012) Turkey’s Textiles and Apparel Cluster; Microeconomics of Competitiveness,

www.

Forti, A, (2006) Istanbul Clustering Conference 2006 – download

213.232.21.103/pdf/KeyNote/Mr_Andrea_Forti.pdf McKinsey Report (2011): Bangladesh’s ready-made garments landscape: The challenge of growth:

download from:

http://www.mckinseyquarterly.com/Bangladesh_The_next_hot_spot_in_apparel_sourcing_2948

Drapers Record July 2012: Savings at Source: Article Knowles James:

Lamson-Hall P 2012 The next frontier of sourcing: As china looks west, should sourcing executives follow?

Sourcing Journal March

Just-Style Management Briefing; Apparel Supply chain challenges in 2012 (www.just-

style.com/management-briefing/apparel-supply-chain-challenges-in-2012_id114214.aspx)

Knowles J. 2012 Spotlight on Turkey; Drapers Record July 4th

Solvell, Lindqvist and Ketels (2003) The Cluster Initiative Green Book, http://www.cluster-research.org/greenbook.htm Books on clustering

Porter, E.M (2008) On Competition, Harvard Business Press

http://books.google.com.bd/books?id=zNmiOfV1XugC&dq=cluster+strategies+porter&sites

ec=reviews6 Reviews

Harvard Business Press, Sep 9, 2008 - 576 pages For the past two decades, Michael Porter's work has towered over the field of competitive strategy.On Competition, Updated Edition brings together more than a dozen of Porter's landmark articles from the Harvard Business Review. Five are new to this edition, including the 2008 update to his classic "The Five Competitive Forces That Shape Strategy," as well as new work on health care, philanthropy, corporate social responsibility, and CEO leadership.This collection captures Porter's unique ability to bridge theory and practice. Each of the articles has not only shaped thinking, but also redefined the work of practitioners in its respective field. In an insightful new introduction, Porter relates each article to the whole of his thinking about competition and value creation, and traces how that thinking has deepened over time.This collection is organized by topic, allowing the reader easy access to the wide range of Porter's work. Parts I and II present the frameworks for which Porter is best known frameworks that address how companies, as well as nations and regions, gain and sustain competitive advantage. Part III shows how strategic thinking can address society's most pressing challenges, from environmental sustainability to improving health-care delivery. Part IV


explores how both nonprofits and corporations can create value for society more effeapplying strategy principles to philanthropy. Part V explores the link between Strategy and Leadership

Handbook of Research on Cluster Theory

Charlie Karlsson

http://books.google.com.bd/books?id=cnwhCIIp2IoC&dq=cluster+strategies+porter&sitese

c=reviews0 Reviews

Edward Elgar Publishing, Sep 30, 2008 - 316 pages

Karlsson has assembled a strong mix of papers that collectively provide a good sense of some of the latest research in the field. Edward Feser, Review of Regional Studies This is a book every regional scientist and spatial analyst should have on their bookshelf. Like most Handbook type publications it provides depth and breadth on the basics of the industrial clustering concept. However, unlike most of these type of collections, it goes beyond the foundation material to identify and speculate on questions that are emerging on the research frontiers such as at the intersection of cluster theory and agglomeration processes, knowledge spillovers and technology transfer not to mention the obvious link to economic development theory, policy and practice. Roger R. Stough, George Mason University, US This eclectic volume presents a host of methods to describe tendencies for the joint location of economic agents in space. And it illustrates useful applications of these concepts in diverse fields financial services, culture, tourism, and industry, to name just a few. John M. Quigley, University of California, US Clusters have increasingly dominated local and regional development policies in recent decades and the growing intellectual and political interest for clusters and clustering is the prime motivation for this Handbook. Charlie Karlsson unites leading experts to present a thorough overview of economic cluster research. Topics explored include agglomeration and cluster theory, methods for analysing clusters, clustering in different spatial contexts and clustering in service industries. Encompassing the developed economies of Europe and North America, the Handbook provides a basis for improving cluster policy formulation, interpretation and analyses. This comprehensive overview of research on economic clusters will be of interest to scholars and PhD students in (regional) economics, economic geography, regional planning and management as well as practitioners and policymakers at the national, regional and local levels involved in cluster formation and cluster management.

Handbook of Research on Innovation and Clusters:

Charlie Karlsson

http://books.google.com.bd/books?id=CmfV4_a8t90C&dq=cluster+strategies+porter&sites

ec=reviews0 Reviews

Edward Elgar Publishing, 2008 - 461 pages This volume is an important step in furthering the discussion about how cluster strategies work and the implications for theory and policy. Jennifer Clark, Review of Regional Studies The role of innovations and clusters has increasingly dominated local and regional development policies in recent decades. This authoritative and accessible Handbook considers important aspects of high-tech clusters, analyses insightful cluster case studies, and provides a number of recommendations for cluster policies. The chapters in this Handbook are written by international experts in the field and present evidence of the scope, effects, and potential of clusters as concentrations of innovative activities. The authors emphasize that cluster development is not the only option for local and regional development and argue that for cluster policies to be worthwhile, supporting policies in fields such as education, R&D, transportation, and communication infrastructure must accompany most cluster policies. Furthermore, several contributions stress that clusters often develop along a life cycle that may end with decline and even the disappearance of clusters. Consequently, this Handbook provides the basis for improving both research on innovation and clusters and the formulation and implementation of cluster policies. Furnishing the reader with rich, comprehensive discussion of innovations and clusters, this Handbook will be an essential source for researchers and academics in the field, as well as policymakers, planners and specialists, development experts and agencies, and consultants.


Competition, Competitive Advantage, and Clusters:

The Ideas of Michael Porter Robert Huggins, Hiro Izushi

http://books.google.com.bd/books?id=6H3Ls_7NxVAC&dq=cluster+strategies+porter&site

sec=reviews0 Reviews

OUP Oxford, Mar 31, 2011 - 336 pages

Harvard professor, Michael Porter has been one of the most influential figures in strategic management research over the last three decades. He infused a rigorous theoretical framework of industrial organization economics with the then still embryonic field of strategic management and elevated it to its current status as an academic discipline. Porter's outstanding career is also characterized by its cross-disciplinary nature. Following his most important work on strategic management, he then made a leap to the policy side and dealt with a completely different set of analytical units. More recently he has made a foray into inner city development, environmental regulations, and health care services. Throughout these explorations Porter has maintained his integrative approach, seeking a road that links management case studies and the general model building of mainstream economics. With expert contributors from a range of disciplines including strategic management, economic development, economic geography, and planning, this book assesses the contribution Michael Porter has made to these respective disciplines. It clarifies the sources of tension and controversy relating to all the major strands of Porter's work, and provides academics, students, and practitioners with a critical guide for the application of Porter's models. The book highlights that while many of the criticisms of Porter's ideas are valid, they are almost an inevitable outcome for a scholar who has sought to build bridges across wide disciplinary valleys. His work has provided others with a set of frameworks to explore in more depth the nature of competition, competitive advantage, and clusters from a range of vantage points.

Clusters, Networks, and Innovation

Stefano Breschi, Franco Malerba

http://books.google.com.bd/books?id=s9RIa_JgUlMC&dq=cluster+strategies+porter&sites

ec=reviews0 Reviews

Oxford University Press, Feb 16, 2006 - 524 pages Governments and regional authorities often express the belief that the key to prosperity and economic expansion is related to the ability of countries to sustain regional clusters of competitiveness and innovation. The book reviews the most important conceptual approaches to the analysis of the emergence, growth and evolution of clusters of innovation. Drawing from the different experiences of industrial districts and high-tech regions such as Silicon Valley, Boston's biotech region and Hsinchu-Taipei, the contributions in this book offer a broad interpretative framework and policy implications for the creations and strengthening of competitive clusters. Themes include: q The wide variety of existing clusters and the diversity on their emergence and growth q The international mobility of factors and demand linkages q The role of different network types and the social setting q The accumulation of capabilities on key large actors and the importance of spinoffs and new firm formation q The role of different learning regimes and sectoral specificities q The importance of social networks, labor mobility and face to face contacts as vehicles of knowledge spillovers Broad implications are drawn for the design of policies to encourage successful economic clusters in developed and developing clusters.


Competitive Advantage of Nations

Michael E. Porter

http://books.google.com.bd/books?id=CqZzxAxBpfEC&dq=competitive+advantage+nation

s+s+porter&sitesec=reviews15 Reviews

Simon & Schuster, Jun 1, 1998 - 896 pages Now beyond its 11th printing and translated into twelve languages, Michael Porter's The Competitive Advantage of Nations has changed completely our conception of how prosperity is created and sustained in the modern global economy. Porter's groundbreaking study of international competitiveness has shaped national policy in countries around the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as Central America. Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter's "diamond," a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of "clusters," or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy.

The competitive advantage of nations:

The case of Turkey : assessing Porter's framework for national advantage

Özlem Öz

http://books.google.com.bd/books?id=9lK4AAAAIAAJ&dq=competitive+advantage+nation

s+s+porter&sitesec=reviews0 Reviews

Ashgate, 1999 - Business & Economics - 214 pages

The book applies Professor Michael Porter's diamond framework to Turkey, a middle-income developing country. By so doing, the author seeks to contribute towards a better understanding of the sources of international competitive advantage. Her research also presents a new approach to evaluate the competitiveness of the Turkish economy, given that alternative studies usually focus on factors like exchange rates and the cost of labour and raw materials as the determinants of competitive advantage. The author begins her book by providing an evaluation of the diamond framework linked to the debate created by the publication of The Competitive Advantage of Nations. She then identifies the pattern of advantage in Turkey by specifying the internationally competitive industries and clusters. This is followed by a detailed examination of the five Turkish industry case studies - glass, construction, leather clothes, automobile and flat steel industries. The findings are generally supportive of Porter. The results suggest, however, several major areas in the framework - especially domestic rivalry and the role of government - where one or more of the Turkish cases question Porter's hypothesises. The book ends with the implications of the study for the sources of competitive advantage in general and for the Turkish economy in particular.


Competition in Global Industries

M. E. Porter http://books.google.com.bd/books?id=vhzv3Dfb8MIC&dq=competitive+advantage+nations

+s+porter&sitesec=reviews1 Review

Harvard Business Press, Nov 1, 1986 - 250 pages This collection provides a framework for understanding the nature of international competition in industries & its strategic implications for firms. It addresses the organizational challenges--marketing, production, government relations, & finance--involved in implementing new global strategies & illustrates, through case studies, the interplay of these factors in today's industries.

4. APPENDICES Appendix 1 - List of powerpoints delivered during the 6-day mission

• Introduction to Clustering, Definitions, Concepts and Principles • Porters Diamond Model • Cluster Forum Powerpoint • Turkey Case Study – Fashion and Textile Cluster • China Case Study – Apparel Production Clusters


Appendix 2 Minutes of the 1st Cluster forum Date: 17th October’12, Venue: CEPD, BUFT. Best program of BWTG, UNIDO, organized a workshop on Cluster for RMG sector; in association with Centre For Export and Product Development, BUFT. The focus was to discuss the prospects and of applying Cluster method and its implementation in RMG sector of Bangladesh. There were forty seven participants at the forum. Those who participated at the forum were from the Ministry of Commerce, BUFT, Ministry of Textiles and Jute, UNIDO, Aarong, Bizcube, iART, NITTRAD, Muhammadi group of industries etc. The forum was chaired by Mr. Muzaffar U.Siddique, Chairman, Board of Trustees, BUFT. Key note speaker of the forum was Dr. Lynne Hammond, Director of International partnership & development; London college of fashion, university of Arts, London. Among forty seven participants we had, Prof. Dr. Engr. Ayub Nabi khan, Pro Vice Chancellor, BUFT Mr. ANM Rafiqul Alam, Registrar, BUFT Ms. Muira Rahman,National project coordinator, UNIDO Mr. Shamim Ahmed, Vice President, BKMEA Mr.David Holbourne, ChiefTechnicalAdviser, BEST/UNIDO Mr. John T. Smith, International coordinator, long term adviser, UNIDO Mr. Maqbul Ahmed, NPC (Textile) Ministry of Textiles and jute, GOB Md. Moslem Uddin Ahmed, Deputy Chief, Ministry of Commerce, GOB Initially Dr. Lynne Hammond defined the concept of clustering, explained its’ significance with example of success in two countries like Turkey and China, through a power point presentation. Later, the participants were divided into three groups;

1. Education 2. Industry 3. Government

Within the groups they discussed the challenges and remedies for each sector. To diagnose the challenges the groups have used SWOT and PESTEL analysis. Diagnosed challenges and remedies are given below: Group 1: Education Challenges: 1.Inadequate link among institutions 2. Lack of R& D 3.Inadequate specialized people 4.Dissimilation between education and practical field. Remedies: 1.To start networking 2. Need based curriculum/ syllabus appropriate for practical field. 3. Develope channels to familiarize students with the industry 4.provide more specialized teaching 5.Encourage exchange programs among institutions both domestic and internationally 6. For value added products we need to introduce new courses and curriculum. Group 2: Industry Challenges: 1.Lack of technical skills 2.Low productivity 3. Supply chain problem 4. Poor communication skills 5.lacking industrial support to produce value added products. 5. Labor unrest 6.Dishonest and insincere labor leader 7.Too low labor wages/cost 8.Unfair worker & employer relationship. Remedies: 1. More collaboration among government educational and industrial sectors. 2. To establish Human resource management for building and growth of capacity. 3. Communicate more actively with the foreign stake holders. 4. Introduce automation to develop production system 6. Develop backward and forward linkage 7.Donor agencies must come forward as well as government to help the smaller industries 8.Emphasize more on Branding (make partnership with Bangladesh Branding Forum) 8.Cross clustering group to be made 9. Develop a dialogue to improve worker-employer relationship 10. Labor cost must raise 11.labor leaders must go through professional training 12.Initiate more market research 13. Develop utilization of traditional textiles to build samples for the market; for example, how Prada is drawn to Indian traditional textiles. Group 3: Government Challenges: 1. Instable political situation 2.Too much beaurocracy 3.Lack unity with the private sector 4.Need to provide help to smaller industries Remedies: 1. Collaborate private sector with the government 2.Licensing is a policy matter, must come with coherent long term plans 3.Introduce and implement more joint venture projects 4. More consistent and strategic policy making is required. 5. Joint consultation between panels is needed 6.Cross Clustering groups need to be


made between Education, government, industry and buyers 7. Provide practical and technical support for new industries 8.Provide training on consultants (keep an objective data). Some grey areas were detected, where either all the sectors collide or they actually have common issues! For example, all three sectors complained about 1.Bad infrastructure 2. The necessity of shared resources 3.The necessity of specialized trainings 4. To start cluster training A lively group discussion took place at the end of the forum. Mr. Muzaffar U. Siddique, Chairman, BUFT expressed his deep concern about the operation and stability of the Cluster program for effective implementation in Bangladesh. He said that it is important to identify and finalize the mode of operands. Whether cluster will be formed and operated under one umbrella? He further pointed out that a larger number of audiences are required to familiarize this concept to respective industries/organizations. Mr. Muzaffar U. siddique suggested about building a Cluster Board of Executives; he also mentioned an action plan, where he proposed to set up a Cluster Coordination Team to steer both the cluster board of executives and the cluster team at root level. Mr. David Holbourne accepted this idea with rather admiration, Mr. Shamim Ahmed, Vice President, BKMEA also supported the idea. In the discussion it was proposed for Mr. Muzaffar U. Siddique to Head the Cluster board of executives. It was decided that a rather large conference will take place in May’13, organized by BUFT. Meanwhile, Dr. Lynne Hammond will write a proposal of the road map for clustering. The participant MBA students (BUFT) were given an assignment to do a research paper on Clustering. All the participant organizations were asked to come up with joint pilot projects to try out the clustering method, and to introduce knowledge transfer programs both domestic and internationally. Prof. Dr. Engr. Ayub Nabi Khan, Pro Vice Chancellor, BUFT referred to ‘Green technology’ as an experimental pilot project. Dr Lynne Hammond highly recommended that a ‘Rapid prototyping Centre’ need to be built at CEPD, BUFT. At the end Mr. Muzaffar U. Siddique, Chairman, BUFT expressed his thanks to the participants for their enthusiastic participation and valuable opinions. He also expressed his gratitude to UNIDO to have organized this workshop on a very important subject ‘Clustering’ through which country like Bangladesh can be benefitted.


Appendix 3 Technical Centres Assessment

An assessment of the industrial training services/products of the three centres supporting the development of Garments, Knitwear and Textiles was undertaken. A questionnaire was given to the managers of each centre to outline the key areas that they are operating and offering training/support to these industrial sectors. iART/BKMEA; NITTRAD/BTMA; BUFT/CEPD.

NITTRAD iART CEPD/BUFT Services

Short courses in Textiles One stop shop service (Consulting, advising, training and long term courses and research)

Consultancy in Productivity and Quality Enhancement 3 month course – Industrial Engineering and Manufacturing 6 month course – Apparel Merchandising 2 month course – Strategic Production Planning 2 week course – Training for university graduates (Industrial Engineer) Various management courses for three levels, workers, supervisors and managers. Research

Career Development Centre – student placements and internships International Competitions/Awards Co-‐ordination Industrial training programmes delivered by International Experts/UNIDO

Staffing/Resources Core Team

We have a core team with faculty members, Assistant Technical Officers for specific and different departments such as Yarn Manufacturing, Fabric Manufacturing, Wet Processing and Apparel Manufacturing. The responsibility of a particular team member is defined by the service offered by the respective department.

Team recruited and selected through newspapers/websites and interviewed by Governing Body of NITTRAD.

Staff Development – is encouraged.

Has a core team managing the centre. Industrial Engineers, Textile Engineers and executives Have been recruited by written and viva test Does have staff development plans in place through TOT programmes, field visits Observing demonstrations class performance and considering factor experience No sharing of resources between other centres

CEPD manager has been recruited by the board of Trustees Two administration assistants also support the centre, plus one designer

Products Offer three month courses Price points 15000 BDT to 30,000 Close contact with factories/collect feedback

Offer 4 types of training per month Charges depend on duration of the course 12,000 BDT to 30,000 BDT Collect feedback from trainees and feedback from the factories about training. According to feedback modify the services on offer

Different types of training is delivered to the industry This could short courses/upskilling or for long PT specialist training

Marketing Through newspapers, website, prospectus and email Own Face book Fan Page Corporate membership of Textile Institute, Full Length Textile Laboratories

Use newspaper, circulars, website. Use posters, banner, booklet and publications Awareness raising seminars and workshops Have website and face book page

Use webstie/blog to communicate the training services on offer

Managing the

Run as a non-‐profit organisation

No business plan in place. iART has a standing committee and regular activity

The majority of the training has been through international


centres Investment to make centre of excellence Six monthly reporting system Links with University of Bolton and Niederrhein University Follow guidelines for University of Dhaka for fulltime courses – follow market demand for short courses Collect feedback and monitor quality to define future planning

report are updated Collaborate with GIZ, UNIDO, IGC and IOM Constantly reviewing services and trying to keep up to date with global industry trends.

experts from Niederrhein University, London College of Fashion, and other UNIDO experts

• The three centres are all offering professional training to the industry. They are all working closely with the industry to inform content and market demand.

• There are no business plans in place to inform objectives and strategy

• Professional bodies do not accredit the training – although NITTRAD was working with the Textile Institute.

• iART and NITTRAD are using local trainers to deliver their programmes, but he majority of the training offered at CEPD was delivered by international experts. The reasons for this are that BUFT is now has University status and is offering part time courses to students.

• There is no sharing of resources, knowledge or ideas to benefit the apparel and textile companies.

• The three centres would benefit from research and development projects that encouraged collaborative thinking and management to drive innovation of new products.

2012 oct dr lynne hammond

Documents

best chapter

bwtg better work

new best programme

best programme objectives

standards programme

report dr lynne hammond

cluster forum appendix

contents of report chapter