Garment Productivity Management

The purpose of the course is to create ability among the participants to develop productivity improvement plans and their execution.

Rationale of Studying Garment Productivity

The only way of survival for Pakistan Better Performance of Garment Industry

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

Significance of Garment Industry

Value added

Labour intensive

Use of infrastructure

Foreign exchange earning

Ancillary industry

Our position in international market

Table One Table Two

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

What we are exporting?

Made ups

Major share bed sheets

Lowest possible price

Throw away products

Not of high quality

Daily used items

Why we are Exporting low priced Items?

Technology?

Designing ?

Machinery?

Raw Material?

Quota?

Duties?

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

For improvement:

We have to study productivity since this is the

only way to achieve honorable position

We can do a lot since:

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

Lecture #02

Productivity Fundamentals

13

Garment Productivity Means?

More productionLess rejectionMore efficient Less labor costLess pollutionMore profitSatisfied customerIn time deliveryHigh price

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.

Productivity?

A mind set to produce more with less

An approach to keep planet intact

An effort to keep all stake holders smiling

Stakeholders

Client

Supplier

Government

Society

Employees

Confrontation in interests

Government --- more taxes

Customer less rate and quick supplies

Society less pollution, more employment

Owner --- more profits

Employees ---- more benefits

Target achievable or not achievable

Yes-----yes ---- yes ---

But how

Through Better Productivity

Productivity is a continuous growth

phenomenon

Growth

Negative or positive

No chance of zero growth

Control and Growth

Growth is an inevitable phenomenon

One has to control it and make it according to

his or her desires and demands

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

Productivity is measured by the goods and

services produced by per unit of national

resources.

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

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

Productivity is about making the most efficient

use of all resources and gaining maximum

added value from them”

Prokopenko & North

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

Productivity is a road to competitive

enterprises, the economic development of

countries and welfare and well being of

nations

Gharneh

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

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.

Industry Commission

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

Lecture# 03

Garment Industry Practices

Garment Productivity Management

A blue print for productivity improvement

Management of whole process

Input

Process

Output

Feed Back

Input

Raw material Human Resources Utilities Time Information System Support of society

Process

Merchandising

Planning

Procurements

Production

Finishing

Packing and export

Quality assurance

Quality control

Quality checking

Quality departments

Output

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

A few new industries in last 10 years, where

as many closed down

Delay in salary

Long over due of suppliers

Bank loan problem

Reason:

Technical

Managerial

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

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

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

Managerial

Top management

Middle management

Front line management

Workers

Top Management

CEO

GM

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

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

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

Motivation

No long term association

Termination quickly

Harsh wording

No friendship and interaction

No dine together

Lack of trust on employees

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

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

Out come

Lack of interaction

No team work

Less trust

What you can do?

Being employee:

Limited decision power

Limited authority

Limited information

Lack of vision

Lack of trust

Options

Look and count sinking of ship

Work hard to save it

Sinking of Ship

Results:

Job lose

Confidence lose

Un-employment

Loss of the nation

More poverty

Only option

Have to give shoulder to ship How? Keeping company interest first Putting more efforts Working hard Increasing commitment level Being confident Seeking help and guidance from Allah

Lecture # 04

Productivity and Economic Prosperity

Productivity and Economic Prosperity

Prosperity is a function of productivity

Economic Prosperity: ultimate goal

Basic demand of human being Provides comfort Gives leadership A way to get respect Independence Sovereignty provision

Means of Economic Prosperity

Reach to resources Use of resources Development of resources Provision of resources Getting benefit of resources

Get work done by others

Economic prosperity depends upon: Knowledge Skill Hard work Use of latest technology Generation of value added products and services

Developed Countries and productivity

A proof that better productivity is a guarantee of economic prosperity

They achieved through better productivity Resources scarcity did not hinder They used resources more wisely

Personal Prosperity and Productivity

More knowledge and more gain High skill and better life More hard work and prosperity Prosperity is a function of productivity

Productivity Measuring Application

Lecture # 05

Productivity Measurement application

Application of PM

It is not only an indicator of actual performance, but also of potential areas of improvement

Highlights the degree of efficiency in the use of economic resources and facilities of an organisation and the ability to control these resources and facilities

Helps to clarify linkages between strategic planning, capital allocation, and performance

Offers an opportunity to compare, forecast, analyse and control different operations

Conti----

Spotting productivity declines for early warning Comparing productivity across individuals, units,

organisations, and industry to make management decisions. Linking management and labour productivity improvement

efforts to build common awareness and responsibilities Demonstrate productivity gains to stakeholders Conducting research and evaluation related to new or

experimental methods Supporting incentives and bonus plans with objective

productivity data

Conti---

Profit Customer Satisfaction Sales Revenue Market Share Costs Quality, defects Response time Units Produced

Conti---

For strategic purpose; in order to make a comparison with other firms

For tactical purpose, to enable management to control the performance

For planning purpose; to compare the relative benefit For internal purpose; so that management can take help for

collective bargaining To measure the work content and reward for labour To determine the staffing level For appraisal of management performance To measure the organisation effectiveness

PM Issues

Data Collection Labour productivity Partial and total productivity Simple and compound productivity Primary and secondary productivity

Lecture # 06

PM models and approaches

PM Approaches

The range of measurement approaches and measurement tools is quite large. As with other productivity tools, the choice of an appropriate tool depends on the nature, scale, level and phase of the investigation. There are even ‘political’ considerations.”

Conti---

Control panels The Objectives Matrix -OMAX The Balanced Scorecard Productivity accounting Throughput costing Economic Value Added -EVA. Integrated Business Control - IBC

Conti---

Growth models attribute increased economic growth either to accumulation of physical or human capital or to increase efficiency of their use

Neoclassical growth models view technical progress as exogenously determined

Endogenous models consider a range of structural and policy variables which contributes to differences in technology endowment, investment, and knowledge accumulation among countries

Total and Partial Productivity It provides both aggregate (firm level) and detailed

(operational unit-level) productivity indices. It points out which operational units are profit making and

which are not It shows which particular input resources are being utilised

inefficiently so that corrective action can be taken It lends itself to mathematical treatment so that sensitivity

analysis and model validity become easier.

It is integrated with evaluation, planning, and improvement phases of the productivity cycle. That is to say the TPM offers for the first time, a way of not only measuring but also evaluating, planning and improving the over all productivity of the an organization as a whole and as well as its operation units.

It offers the advantages of management by exception by providing, a means to more tightly control the total productivity of major operation units, while providing routine control for the less critical operation units.

It provides valuable information to strategic planners in making decisions related to diversification and phase-outs

of product or services.

Lecture # 07

Garment Productivity Measuring Factors Contributing in Productivity

Factors

Raw Material Utilities Human Resources Time Capital Infrastructure

Significance of Factors

Different factors have different share Some factors are controllable Some factors are out of control Some factors easily controllable Some factors have less significant

Selection of Factors

Most important Most critical Be sensitive in selection the factors Be critical in selection the factors Be wise in selection of factors

Raw Material

Yarn 40 to 50 % of the cost Dyed Fabric 50 to 60 % -------- Trims 10 to 15%---------- Labour 5 to 15 % ---------- Over Head 10 to 20 % --------- Utility Bills 5 to 10 % ---------- Misc 5 to 10 % ----------

Raw Material

60 to 70 % of the total cost Minor change in RM consumption can save a

lot Easy to save little How one can save RM? Next Class

Raw Material

Fabric Trims Accessories

Fabric

Main fabric Fusing

Potential Productivity Indicator

What can be produced what has been produced?

Potential

Potential calculation Problems:

Variation in product Variation in style Variation in quantity Any other change

How to calculate the Production Potential From previous record By doing experiments Market practice Machine manufacturer’s recommendation

Production Departments

Cutting Stitching Clipping Pressing Packing

Develop potential of every department

Keeping in view the product, facilities and skill of the people

Cutting Department Potential

How much pieces can be cut with same number of people?

What is current level of production? What is the variation level? Why there is a variation? Who is responsible? Workers.. Machines.. System..

Workers

Lack of skill Lack of motivation Lack of awareness Lack of guidance Lack of commitment No personal growth plan Any other

System

Poor environment Poor planning Non-availability of material No incentive Less control Poor management Any other

Machines

Old technology Poor maintenance of machines Less quantity of machines than required No skill to operate the machines Any other

How you can improve?

First identify the problem Then search it solution with the help of people

working Apply Keep an eye during application process

We know where most of the creativity, the innovation, the stuff that drives productivity lies -- in the minds of those closest to the work. John F. Welch, Jr.

Time management is life management.  Everybody manages time.  It's not optional. Some people just do it better than others."

If you use your head more, you'll use your feet less."

Do not spend time.  Invest it. You spend time in your sleep.  Investing time requires conscious thought.”

Lecture # 08

Resource Productivity

One learns by asking questions. Author : Ali ibn Abi Talib (r.a)

Men are born to succeed, not fail."- Henry David Thoreau

The growth & development of people is the highest calling of leadership."- Harvey S. Fireston

“I know the price of success: dedication, hard work, and a devotion to the things you want to see happen." - Frank Lloyd Wright

"Purpose is what gives life a meaning." -- C. H. Parkhurst

Cares For Consumption Planning

Must be accurate No extra ordinary margins

Planned Requirement

Planning can lead you to any destination Planed Consumption

Basis for Planned consumption Old record Markers Sampling

Raw Material

Fabric Selection of fabric supplier Quality checking of fabric Quantity Delivery time And finally price

Analysis of Consumed RM

Actual verses Planned Variation is possible Reasons of variation

This comparison will help in calculating the reason of variation

Variation may be plus or minus In both cases it is not acceptable

Variation Reasons

Quantity variation Cost variation

Quantity Variation Reasons

Quality – more defects in fabric Width variation Length variation Grammage variation Color shading

Cost variation

Price fluctuation Other cost like transportation , storage Re processing Sorting

Productivity Indicator

Raw material per garment One has to control During production And has to make a comparison after

competition

Lecture # 09

Cutting Department Potential Productivity

Cutting Department Function

Receiving of fabric Checking of quality of fabric Quantity verification Assurance of all required accessories Placing of goods in order Avoiding mixing of goods with other lots

Laying of fabric

Length of lay decision Proper length Control of wastage Use of margins Avoiding mixing of different rolls Proper bundling

Cutting Process

Cutting can add faults Cutting can save losses Cutting is irrecoverable Loss is multiplied by high numbers

Cutting Productivity Parameters

Consumption per garment Number of pieces cut in a shift Rejection of panels and piece percentage Reasons of rejection Analysis of rejections Remedy of rejected panels

Waste analysis

Large waste Small waste Front and end pieces Panels wastage

Lecture # 10

Stitching Process

Assembling of Cut pieces

Receiving from cutting department and induction

Stitching of cut pieces according to design Checking of quality

Stitching Productivity

Garments per machine Garments per head Garments per square meter

Productivity per operation

Different machines are used for stitching Productivity of different stitching machines Productivity of different operators Productivity of line checkers

Re-work enemy of productivity Re-work percentage Reasons of re-work Remedies of re-work Record of re-work

Finishing Department

Receiving from stitching Clipping Pressing and checking Packing

Finishing Productivity

Pressing per day Packing per day Percentage of wrong packing Percentage of repacking Packing per person Packing per hour

Packing problems

Wrong packing Assortment disturbance Mishandling of pieces Addition of stains during packing

Better Packing can Add Product Value

Lecture # 11

Garments Quality and Productivity We need quality products with high

productivity

 Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination are omnipotent. The slogan press on has solved and always will solve the problems of the human race. No person was ever honored for what he received. Honor has been the reward for what he gave.   

  Author: (John) Calvin Coolidge (1872-1933), 30th US President, Republican

Quality

Goods as per demand of the customer 1-Time 2-Product 3-Quantity 4- Specification

Productivity

At minimum cost--- efficiency Maximum Production--- efficiency Minimum Rejection rates--- effectiveness High value ---- performance Optimum production--- maximum capacity

utilization No loss to the nature--- environmental friendly

Wise use of resources--- resource productivity

Application of latest technology--- less utility and Labour bills

What we need?

Quality products High productivity

What do you think?

Quality?

Is it demanded? Is it built in? Can some one compromise? Can we live without it?

Then why some one discuss it?

Just to remind

Productivity

Can one live with low productivity? Was in past it was less important? Can we hire a less productive manager? Price of slaves in ancient times mainly depends upon

his or her productivity? People move one area to other area based on

productivity of land Command, authority, leadership depends upon

productivity

What is your Answer?

Productivity Quality Or Both Then How? It is the question needs your answer

Only growth can ensure your success and happiness

Lecture # 12

Resource Productivity

Post Shipment Analysis

This will help you in finalizing the strategies

Planned and Consumed

Post shipment analysis Reasons of variation Remedied for variation Future planning Record of previous shipments Meeting on order closing

Involvement of whole team Distribution of information to all persons

concerned

Significance of Post shipment analysis

In most of the cases orders are accepted which have profit margin

It is very rare that orders are accepted for loss… might be some hidden agenda

But In most of the cases there is a loss after

completion of order---------- Reasons?

Reasons Identification

Most significant process Needs to avoid such loss in future To have more profit in future To reduce price for better marketing To know the potential loss

Steps in post shipment analysis

Identification of most significant factors Classification of factors on the basis of their

origin Comparison of actual verses plan Reasons of variation Cause and affect diagram

Results Analysis

Discussion about outcome with other team members

Fixing the responsibilities on departments not on persons

Estimating share of different departments Conclusion

Lecture # 13

Productivity is a comparison Phenomenon Evaluation and comparison

Evaluation

What we have done? What was our capacity? How many resources we have used? What could be done? For this we have to compare

Comparison

With potential With competitors With market With old record With trail run

How to compare

For comparison

1- Maximum similarity

2- High players of the market

3- In a simplest way

4- Frequently

5- Periodically

Evaluation Level

Personnel Department Firm Industry Country World

Who can evaluate?

Must have knowledge about the process Must have experience to measure Must have the ability to correlate different

factors Must be able to understand affect of any

factor

When to Measure?

Before start During After completion Or

??????

Conclusion

May be biased May be not true May be misleading Can lead to some way far

Explanation of results

Much important Much crucial Must be done with lot of care

Actions should be based upon results

The intelligent man is whoever knows how to be happier today than yesterday

He is honoured who frequents the intelligent

No one who possesses intelligence is ever reduced to poverty

Application of Evaluation in Textiles

Evaluate yourself before you are evaluated by customers

Early evaluation will help you in improving Late evolution just intimation of failure Better evaluate yourself every day and every

moment

Internal audit is better than audit by the customer

Lecture # 14

Productivity Planning

Third Step of Productivity Cycle

Planning Objective

For Better Productivity

Micro Planning

Major Areas

Stop the leakage

Most important Much crucial No development is possible You can’t fill the glass with a hole in the

bottom

Rejection Reduction Planning

Rejection measurement Rejection is a symptom not reason Reason is some where else

Identification of reasons

It is difficult to assess difference between reason and symptom

No improvement is possible with out addressing symptom

This needs a skill and quite clear vision Spend maximum time at this step

Addressing of symptom

Involve people Take their observation Ask them for solution Encourage their participation Encourage to have experiments Help in experimentation Give support for difficult decisions

Lecture # 15

Productivity Application

Implementation – the fourth step

Apply your decisions Gradually and be vigilant in assessing the results Give extra time and resources to your team during

implementation Do not resist for change during implementation Celebrate minor and major success

Actions will be judged according to intentions Muhammed PCBH

The world will be your best counselor, if you follow its advice Hazrat Al

Lecture # 16

Productivity Reviewing

More Coming Soon ... We are working on this category.

Productivity Reviewing

Change is an ever last phenomenon

Why Review

Have to improve targets Environment has changed Demands have been changed Culture has been changed Technology has been changed

How to Review

Compare targets and achievements Analyze the out come Do micro analysis Consult the relevant people Make graphic representation Intimate to every one about results Do not hide the truth

Reviewing and Planning

Reviewing is not the target Objective is to make base for next planning Planning needs some basis

Lecture # 17

Personal Productivity

PERSONAL PRODUCTIVITY and Organizational Performance

Productivity Concept and meaning Doing more with less

Ratio of output to input Doing right first time Less wastage More yields More wise use of resources Helping increased productivity of others

In one’s lifeOutput Work Result Gain Develop Grow Increased in knowledge Helpful for others

InputTimeResourcesWealthOthers timePlaceMaterial (books, food, energy etc)

Process Doing things Reading Learning Writing Listening Having meetings Remembering Results are directly proportional to the

level of self organising

Self-organising Only to have more with less How in can be increased?

Clear goals Priorities Daily plan Elimination of Procrastination Avoiding Personal disorganisation Looking for Perfectionism Avoiding Interruption

Goal pyramid Long term- medium rang and short term Be realistic when setting your goals Be realistic about your expectations Do not give up very easily Prefer those areas that offer the best chance for

improvement Monitor your achievements And resetting your goals

Organising Study Life --------------------learning is life

Create study environment Study group Where you should study- library, home, and

friends home When you should study

Study when you are best Consider your sleep habits Study when you can

Evaluate your study area

Have a drinkTurn down the heatShake a legChange your schedule

Be selective in study

Why study What to study How much to study After study

Remember Take notes Put notes properly for future references

Your Productivity is Organizational Prosperity Direct link between your performance and

company performance Company performance is sum of individual

performance It is the duty of company to improve personal

performance And it is the duty of individuals to improve

company performance

Interest is common Threat is common Goals are common Targets are common Duties are different

Your personal improvement will help you in your personal growth

Be selfish in personal productivity

Lecture 18

Application of Productivity Improvement Program

We Have Studied

Productivity Cycle Measure Evaluate Plan Action

This lecture will cover

Guideline to start productivity program in a firm

Discussion about possible confrontations Issues related to this program Support required Cost and benefit analysis Win-Win position

Justification of Productivity Program

Low profits Heavy loss More stress on management Quick change of customers Always in hurry Spoil personal life of management No good name in market

Are these rationale are significant?

supposed to be some where else should be market leader have a credit in market should earn more profits should have a balance in business and

personal life should have time for prayers

Convinced Team--- Basic Requirement for Change How you can Convince team?

By telling them the truth…. May be they are thinking that situation is quite healthy

By sharing secret--- so called secrets with them By gaining their confidence By telling them successful stories of winners By showing them worst scenario--- if there is no

improvement By promising for a better share of fruits

Be Ready for Confrontation

You may face severe confrontation; like, Criticism Mistrust Working alone No action on your advice Blames Discriminated behavior

Issues Might Come

No data is available Wrong reporting Double reports Fake figures Hidden agenda Taking personal grudge Using your office for personal gains Any thing ----

You Need

Support Authority

Support Required From

Top management Middle Management Front line management Workers

Support is not your Right

But you need it: How you can get it?

A big question?

Qualities Required:

Interpersonal skills Be fair Be trustworthy Do not indulge in their private and personal matters Be neutral Focus on your own job Do not be part of any group Do not be personal

Cost and Benefit Analysis

Need of funds for improvement never appreciated

Start such activities where no money is required

Prove that you are saving some thing Plan to invest part of savings Be conscious in investing money

Who will Be benefited?

Firms Society Government Community Or employees themselves

Who will get Benefit First?

Employees

Elaborate this phenomenon

This is the motivation point

Productivity--- unending process

Never stop productivity program It is for ever since

Competition is for ever

Lecture # 19

Productivity Measurement

Measurement

We have studied the significance of productivity measurements and methods to measure productivity. Now we will measure change in productivity indicators

TFP is a sum of partial productivity

Example:

Total Pieces Produced 25890

Total Pieces Rejected 2356

Rejected Due to Knitting Faults

650

Rejected Due to Dyeing Faults

560

Rejected Due to Stitching faults

1050

Misc 96

Small Holes 150

Needle line 250

Press off 50

Oil stain 150

Double stitch 50

Detail of Knitting Faults

Calculate:

If needle line problem improve 50% what will be the impact on total rejection %

Lecture 20

Productivity Measurement and its analysis

Analysis

For Improvement For addressing the weak areas Finalizing increment Hiring and firing decisions Making strategic decisions Forming policies

Un attended

If results are not derived and action actions are not taking --- then people will ignore its importance

Analysis and People Involvement

Development depends upon the level of people involvement