Contents

Chapter 1
Background of the Study ................................................................................................................ 4
Rationale of the Study..................................................................................................................... 4
Objective of the study ..................................................................................................................... 4
Methodology of the Study .............................................................................................................. 5
Sources of Data ........................................................................................................................... 5
Primary Data ........................................................................................................................... 5
Secondary Data ....................................................................................................................... 5
Limitation of the Study ................................................................................................................... 5

Chapter 2
Quality tool ..................................................................................................................................... 6
Flowcharts ................................................................................................................................... 6
Check sheets................................................................................................................................ 7
Cause-and-effect diagrams.......................................................................................................... 7
Control charts .............................................................................................................................. 8
Pareto analysis ............................................................................................................................ 9
Scatter diagrams ........................................................................................................................ 10
Applications of seven quality tools: .............................................................................................. 11
Flowcharts ................................................................................................................................. 11
Check Sheets ............................................................................................................................. 11
Cause and Effect Diagrams ....................................................................................................... 11
Pareto Analysis ......................................................................................................................... 11
Scatter Diagram ........................................................................................................................ 11
Advantages of Using Quality Tool ............................................................................................... 12
Limitations of Using Quality Measurement Tool ......................................................................... 12
Unrealistic expectations from the tool ...................................................................................... 12

0
 People often make mistakes by underestimating the time, cost and effort for the initial
introduction of a tool ................................................................................................................. 12
People frequently miscalculate the time and effort needed to achieve significant and
continuing benefits from the tool .............................................................................................. 12
Mostly people underestimate the effort required to maintain the test assets generated by the
tool ............................................................................................................................................ 13
People depend on the tool a lot (over-reliance on the tool) ...................................................... 13
Enterprise Resource Planning (ERP) ............................................................................................ 13

Chapter 3
Textile Industry around the World ................................................................................................ 15
Use of ERP software in businesses around the world................................................................... 15
The key success factors for ERP implementation......................................................................... 16
The Leading ERP software providers around the world ............................................................... 16
SAP at a glance ......................................................................................................................... 16
Microsoft at a glance ................................................................................................................. 16
Epicor at a glance ...................................................................................................................... 17
Infor at a glance ........................................................................................................................ 17
Oracle at a glance ...................................................................................................................... 17
The reason for large companies using open source ERP .............................................................. 18

Chapter 4
Textile Industry in Bangladesh ..................................................................................................... 19
Applications of Quality Tools in Textile sector ............................................................................ 19
Quality Tools: ........................................................................................................................... 19
Cause-and-Effect Diagrams ...................................................................................................... 19
Flowcharts ................................................................................................................................. 20
Checklists .................................................................................................................................. 20
Control Charts ........................................................................................................................... 21
Scatter Diagrams ....................................................................................................................... 21
Pareto Analysis ......................................................................................................................... 21
Histograms ................................................................................................................................ 22

1
Cost of Quality .............................................................................................................................. 22
Prevention ............................................................................................................................. 22
Methods of Quality Control .......................................................................................................... 23
Piece goods quality control ....................................................................................................... 23
Quality control in Cutting section ............................................................................................. 23
In process quality control (Sewing) .......................................................................................... 23
Quality control in washing section ........................................................................................... 24
Quality control in finishing sections ......................................................................................... 24
Use of Enterprise Resource Planning (ERP) in Textiles .............................................................. 24
Definition .................................................................................................................................. 24
Why ERP in Textile Industry .................................................................................................... 24
Benefits ..................................................................................................................................... 25
Limitations of ERP include ....................................................................................................... 25
Types of software for Textile Industries ....................................................................................... 26
Development of ERP package for Textiles ................................................................................... 26
Implementations of ERP ............................................................................................................... 27
Existing ERP system: .................................................................................................................... 27
Leading ERP giants....................................................................................................................... 27
Evaluation of successful firms ...................................................................................................... 28

Chapter 5
ABC Garments Ltd ....................................................................................................................... 29
Company Overview .................................................................................................................. 29
Corporate Social Responsibility ............................................................................................... 30
Ananta Apparels Ltd ..................................................................................................................... 31
Company Profile ....................................................................................................................... 31
Export Volume .......................................................................................................................... 31
Corporate Social Responsibility ............................................................................................... 31
T.H Fashion................................................................................................................................... 32
Company Overview .................................................................................................................. 32
Corporate Social Responsibility ............................................................................................... 32

2
Chapter 6
Findings......................................................................................................................................... 33
Questionnaire.34

Chapter 7
Conclusion, Recommendation & Reference.44

3
Chapter 1: Introduction
Background of the Study
This study shows the use of Quality Control Tools and ERP system in real situations in an
industry. Bangladesh is one of the developing countries with significant influence in the world
RMG sector and textile industry. As a matter of fact there are a number of garments firm
available in Bangladesh. But very few of them are up to the mark in world competition. This is
because the use of advance system & tools for inspection are not available in large scale. But a
number of companies are showing their progress due to the use of those techniques. This report
shows a survey on three garments industry situated in Dhaka, Bangladesh.

Rationale of the Study

As our course Operation Management shows the significant influence and use of some important
operation management tools not to mention the development procedures of those tools it is of a
great importance that we take an onsite inspection of those tools used in companies in garments
or textile industry. Some of the broad reasons are:

Enrich the level of knowledge gained.

Talk with superiors and workers and learn practical knowledge.
Gain practical experience etc.

Objective of the study

The main objectives of this study are to practically inspect the real situation of the textile
industry and the use of Quality Control Tools and ERP system. Some of the specific objectives
are:

To see what is going on in the company.

To analyze the effectiveness of the tools and systems.
To determine the amount of development rate increased due to using these tools.
To find out the challenges faced while implementing the systems.
To search for costs regarding the processes and scope of development available etc.

4
Methodology of the Study
Since the report is divided in more than one part so the procedure for each stages are not equal
i.e. the collection of data and setting are not from same sources and/or the structure are different
in some cases. As for the data collection most of the data are collected from secondary sources
however the finding were designed from the analysis of primary data in which some sources of
data are secured and are off boundary.

Sources of Data
Primary Data
The necessary data which are considered as primary are collected from the garments company
visited during the preparation of the report. The garments company visited are ABC Garments
Ltd., Ananta Apparels Ltd. and T J Fashion.

Secondary Data
A lot of data were collected from the secondary sources in which most of them are mentioned in
the reference sector. However not all of them are directly used; most of the data were modified
before using.

Limitation of the Study

Lots of challenges, difficulties and extreme situations were faced during the creation of the
report. Some of them are mentioned below

Lack of necessary sources for data collection.

Lack of time.
Unavailability of information.
Lack of proper cooperation by firms as they are not aware of report works and related
issues.
Most of the data provided in the internet proves to be insufficient so lots of data were
created on a base of assumption.
Lack of proper guidelines from firms etc.

5
Chapter 2: Literature Review
Quality tool
Any chart, device, software, strategy, or technique that supports quality management efforts is
called quality tool. An organization can use quality tool for problem solving and process
improvement. Quality tools are also used in improving production processes. There are seven
basic tools. These are described below

Flowcharts
A flowchart is a visual representation of a process. It is a diagram of the steps in a process where
activities are shown according to sequence. This is one of the basic quality tools that can be used
for analyzing a sequence of events. The tool maps out a sequence of events that take place
sequentially or in parallel. The flow chart can be used to understand a complex process in order
to find the relationships and dependencies between events. We can also get a brief idea about the
critical path of the process and the events involved in the critical path .Flow charts can be used
for any field to illustrate complex processes in a simple way. There is specific software tools
developed for drawing flow charts, such as MS Visio. We can download some of the open source
flow chart tools developed by the open source community. A demo is given below.

6
Check sheets
A structured prepared form for collecting and analyzing data a generic tool that can be adapted
for a wide variety of purposes. A check sheet can be introduced as the most basic tool for quality.
A check sheet is basically used for gathering and organizing data. When this is done with the
help of software packages such as Microsoft Excel, we can derive further analysis graphs and
automate through macros available. Therefore, it is always a good idea to use a software check
sheet for information gathering and organizing needs. One can always use a paper-based check
sheet when the information gathered is only used for backup or storing purposes other than
further processing. A demo is given below.

Cause-and-effect diagrams
This is also called Ishikawa or fishbone chart. It identifies many possible causes for an effect or
problem and sorts ideas into useful categories. Cause and effect diagrams (Ishikawa Diagram)
are used for understanding organizational or business problem causes. Organizations face
problems every day and it is required to understand the causes of these problems in order to
solve them effectively. Cause and effect diagrams exercise is usually teamwork. A brainstorming
session is required in order to come up with an effective cause and effect diagram. All the main
components of a problem area are listed and possible causes from each area is listed. Then, most
likely causes of the problems are identified to carry out further analysis. A demo is given on the
other page.

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Control charts
Graphs used to study how a process changes over time. Control chart is the best tool for
monitoring the performance of a process. These types of charts can be used for monitoring any
processes related to function of the organization. These charts allow us to identify the following
conditions related to the process that has been monitored.

Stability of the process

Predictability of the process
Identification of common cause of variation
Special conditions where the monitoring party needs to react
A demo is provided below.

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Histograms
The most commonly used graph for showing frequency distributions, or how often each different
value in a set of data occurs. Histogram is used for illustrating the frequency and the extent in the
context of two variables. Histogram is a chart with columns. This represents the distribution by
mean. If the histogram is normal, the graph takes the shape of a bell curve. If it is not normal, it
may take different shapes based on the condition of the distribution. Histogram can be used to
measure something against another thing. Always, it should be two variables. Consider the
following example: The following histogram shows morning attendance of a class. The X-axis is
the number of students and the Y-axis the time of the day.

Pareto analysis
Shows on a bar graph which factors are more significant. Pareto charts are used for identifying a
set of priorities. You can chart any number of issues/variables related to a specific concern and
record the number of occurrences. This way you can figure out the parameters that have the
highest impact on the specific concern. This helps you to work on the propriety issues in order to
get the condition under control. A demo graph is given on the other page.

9
Scatter diagrams
Scatter diagram is graphs or pairs of numerical data where one variable on each axis looks other
as for relationship. When it comes to the values of two variables, scatter diagrams are the best
way to present. Scatter diagrams present the relationship between two variables and illustrate the
results on a Cartesian plane. Then, further analysis, such as trend analysis can be performed on
the values. In these diagrams, one variable denotes one axis and another variable denotes the
other axis.

10
Applications of seven quality tools:

Flowcharts
A flowchart can help investigators in identifying possible points in a process where problems
occur. The diamond shapes in the flowchart represent decision points in the process and the
rectangular shapes represent procedures. The arrows show the direction of flow of the steps in
the process.

Check Sheets
Check sheets provide a format that enables users to record and organize data in a way that
facilitates collection and analysis. Many different formats can be used and also different types of
sheets. One frequently used form of check sheet deals with type of defect, another with location
of defects.

Cause and Effect Diagrams

This tool helps to organize problem-solving efforts by identifying categories of factors that might
be causing problems. Often this tool is used after brainstorming sessions to organize the ideas
generated.

Control Charts
It can help detect the presence of correctable causes of variation. Control charts also can indicate
when a problem occurred and give insight into what caused the problem.

Histograms
A histogram can be useful in getting a sense of the distribution of observed values. Among other
things, one can see if the distribution is symmetrical, what the range of values is and if there are
any unusual values.

Pareto Analysis
Often referred to as the 80-20 rule, this concept says that approximately 80 percent of the
problems come from 20 percent of the items. For instance, 80 percent of machine break downs
come from 20 percent of the machines and 80 percent of the product defects come from 20
percent of the causes of defects. Often this is useful to prepare a chart that shows the number of
occurrences by category.

Scatter Diagram
This can be useful in deciding if there is a correlation between the values of two variables. A
correlation may point to cause of a problem. The higher the correlation between the two
variables, the less scatter in the points; the points will tend to line up.

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Advantages of Using Quality Tool
There are several advantages of using quality tool which some of them are given below.

Many people in the industries are undoubtedly familiar with many of these tools and
know their application, advantages and limitations.
However these must be ensured that these tools are in place and being used to their full
advantage.
Flowcharts and check sheets are most valuable in identifying problems whereas cause
and effect diagrams, scatter diagrams, histograms and control charts are used for problem
analysis. Pareto diagrams are effective for both areas.
By properly using these tools, the problem solving process can be more effective and
efficient.

Limitations of Using Quality Measurement Tool

Although there are many benefits that can be achieved by using tools to support testing activities,
but there are also many risks that are associated with it when tool support for testing is
introduced and used. Risks include:

Unrealistic expectations from the tool

Unrealistic expectations may be one of the greatest risks to success with tools. The tools are just
software and we all know that there are many problems associated with any kind of software. It
is very important to have clear and realistic objectives for what the tool can do.

People often make mistakes by underestimating the time, cost and

effort for the initial introduction of a tool
Introducing something new into an organization is hardly straightforward. Once you purchase a
tool, you want to have a number of people being able to use the tool in a way that will be
beneficial. There will be some technical issues to overcome, but there will also be resistance
from other people both need to be handled in such a way that the tool will be of great success.

People frequently miscalculate the time and effort needed to

achieve significant and continuing benefits from the tool
Mostly in the initial phase when the tool is new to the people, they miscalculate the time and
effort needed to achieve significant and continuing benefits from the tool. Just think back to the
last time you tried something new for the very first time (learning to drive, riding a bike, skiing).
Your first attempts were unlikely to be very good but with more experience and practice you
became much better. Using a testing tool for the first time will not be your best use of the tool
either. It takes time to develop ways of using the tool in order to achieve what is expected.

12
Mostly people underestimate the effort required to maintain the
test assets generated by the tool
Generally people underestimate the effort required to maintain the test assets generated by the
tool. Because of the insufficient planning for maintenance of the assets that the tool produces,
there are chances that the tool might end up as shelf-ware, along with the previously listed
risks.

People depend on the tool a lot (over-reliance on the tool)

Since there are many benefits that can be gained by using tools to support testing like reduction
of repetitive work, greater consistency and repeatability, etc. people started to depend on the tool
a lot. But the tools are just a software they can do only what they have been designed to do (at
least a good quality tool can), but they cannot do everything. A tool can definitely help, but it
cannot replace the intelligence needed to know how best to use it, and how to evaluate current
and future uses of the tool. For example, a test execution tool does not replace the need for good
test design and should not be used for every test some tests are still better executed manually.
A test that takes a very long time to automate and will not be run very often is better done
manually.

Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is a software solution that tackles the needs of an
organization, taking into account the process view to meet an organization's goals while
incorporating all the functions of an organization. Its purpose is to make easy the information
flow between all business functions within the boundaries of the organization and manage the
organization's connections with its outside stakeholders. In a nutshell, the Enterprise Resource
Planning software tries to integrate all the different departments and functions of an organization
into a single computer system to serve the various needs of these departments.

Advantages of ERP
With Enterprise Resource Planning (ERP) software, accurate forecasting can be done.
When accurate forecasting inventory levels are kept at maximum efficiency, this allows
for the organization to be profitable.
Integration of the various departments ensures communication, productivity and
efficiency.
Adopting ERP software eradicates the problem of coordinating changes between many
systems.
ERP software provides a top-down view of an organization, so information is available to
make decisions at anytime, anywhere.
Nowadays, retailers and consumers push for lower prices, better quality and quicker
delivery. ERP implementation shows your determination to head for those directions.
Confidence of your business partners and consumers will be increased.

13
 Some multi-lingual ERP software can perform automatic translation enables almost every
style detail to be viewed in several languages including English, Chinese, and etc. It
improves the effectiveness of communication.
ERP helps business process flow more smoothly and improves the efficiency of
fulfillment process. It leads to reduced invntory. Eventually, it decreases the overall
business cost.
Manufacturing companies often find that multiple business units across the company
make the same widget using different methods and computer systems. ERP standardizes
the manufacturing processes and improve quality.
Advanced ERP software has the ability to be customized to the extent that screens can be
remodeled, fields can be edited and the architecture modified through progressive
installation processes. In addition, advanced ERP software can be operated in a secured,
web-based environment. These features provide flexibility and convenience in
implementation and operation.

Disadvantages of ERP

Adopting ERP systems can be expensive.

The lack of boundaries created by ERP software in a company can cause problems of
who takes the blame, lines of responsibility and employee morale.

Applications of ERP
The applications of ERP are showed in two below images. Applications are showed according to
integrated and non-integrated system.

According to some scholars they use the word "E" for enterprise. This is true ambition of ERP. It
attempts to integrate all departments and functions across a company onto a single computer
system that can serve all those departments' particular needs. The integration streamlines internal
business processes and improves productivity of a company.

14
Chapter 3: Industry Analysis (Global
Perspective)
Textile Industry around the World
After the exclusion of global quota scheme, the textile industry is flourishing at high speed. The
world is on a new corridor of industrial revolution. Analysts are anticipating more expansion
with latest technologies in Textile Machineries. The textile machinery manufacturing hubs like
China, Germany, Italy, Switzerland and India have already jumped in gigantic competition to
craft and bid best technologies in textile machineries. Global Industry Analysts, Inc. (GIA) has
declared that the global bazaar for textile machinery is estimated to reach US$22.9 billion by
2017.Demand for sophisticated machines that produce high quality cloth is increasing. Whatever
is the technology, the purchasing decision is greatly influenced by the machines versatility,
flexibility, and price offers. Key factors for dynamic growth in the textile machinery market
contain economic revival post-recession, rising demand for nonwoven disposable textile
products, increasing demand from promising regions, especially Asia-Pacific, and going up
demand for environmentally-friendly fibers. This article analyzes some of the world leading
textile machinery manufacturing countries.

Use of ERP software in businesses around the world

Enterprise resource planning software has traditionally been used in large operations because
of its complexity. On-site ERP systems have helped manufacturers for many years, but
seemingly the biggest companies have taken advantage of the software the most. Just take the
name, for example. The software was initially designed for the corporate-level manufacturers.

In recent years a growing number of small and midsize companies are deploying enterprise
resource planning applications. In the past, many of these companies, typically with annual
revenue of less than $500 million, didn't have the budget or time to consider implementing large,
complex, and expensive ERP packages. But with marquee software makers such as Oracle,
PeopleSoft, and SAP creating less-expensive, modular, Web-architected, and hosted versions of
their ERP software, a lot of smaller companies are rethinking their options.

Vendors' strategies for small and midsize businesses fit well with those companies' desire to
avoid customization as much as possible, because customization can drive up costs. When
Carreker Corp., a $110 million Dallas provider of consulting services to banks, went shopping
last year for software to handle accounting, human resources, and performance management, it
specified that the winning vendor would need to fulfill 80% of the company's needs out of the
box.

15
The key success factors for ERP implementation
o Project Startup
o Management Commitment
o Project Scope
o Project Team
o Change Management, Communication and Training
o Customizations/Modifications
o Budget
o Project Closure

The Leading ERP software providers around the world

o SAP
o Microsoft Dynamics
o Epicor
o Infor
o Oracle

SAP at a glance

o More than 35,000 customers, 120 countries

o Claim CRM market share leader
o Built the client/server ERP market
o Very impressive distribution/SCM
o Several industry solutions
o Netweaver, SQL and a chasm of technologies
o Priced at the high end

Microsoft at a glance

o Over 83,000 ERP customers

o Strong SMB/mid-market solution
o Only sold through VAR channel
o Multiple ERP products
o Solutions often vary by global region
o MS/.Net/SQL technology
o Low to moderately priced

16
Epicor at a glance

o Long history of reputable products

o Over 20,000 customers, 140 countries, 30 languages
o In major growth mode
o Reasonable VAR channel
o Several strong industry solutions
o ERP consultant strength
o MS/SQL/SOA technology
o Low to moderately priced

Infor at a glance

o Over 70,000 customers

o Several different ERP systems
o Vertically focused ERP solutions
o Lean manufacturing capabilities
o Complex and discrete manufacturing
o Strong distribution and SCM
o Low to moderately priced

Oracle at a glance

o Over 37,000 application customers

o #2 ERP market share leader
o 30 year proven credibility
o New SOA architecture
o Deep software functionality
o Outrageous flexibility
o Priced at the high end

17
 Figure: Worldwide ERP software Market share, 2012

The reason for large companies using open source ERP

The main reason larger companies use open source Enterprise Resource Planning (ERP)
systems is because they are cheaper and easier to customize. Further, it saves your business costs
in the long run. When an open source ERP is used there are typically no license or software
maintenance costs. In many cases, the external consultants and programmer fees are lower. Most
open source ERP software systems can use open source databases and operating systems, giving
you a license-free option. Commercial ERP systems often need expensive commercial databases
and operating systems.

Large company IT departments appreciate that an open source ERP has is of higher quality,
because many independent, often passionate developers have looked at it, criticized its code, and
contributed enhancements. Competition between developers is very common in open source
software and improves quality.

Open source ERP systems are easier to upgrade when customizations are properly implemented
(outside the base system) than with commercial systems and upgrades can therefore be done
much more often (every three months to monthly) without disruption of the production system.

18
Chapter4: Industry Analysis (Bangladesh
perspective)
Textile Industry in Bangladesh
The textile and clothing (T&C) industries provide the single source of economic growth in
Bangladesh's rapidly developing economy. Exports of textiles and garments are the principal
source of foreign exchange earnings. Agriculture for domestic consumption is Bangladeshs
largest employment sector. By 2002 exports of textiles, clothing, and ready-made garments
(RMG) accounted for 77% of Bangladeshs total merchandise exports. By 2013, about 4 million
people, mostly women, worked in Bangladesh's $19 billion-a-year industry, export-oriented
ready-made garment (RMG) industry. Bangladesh is second only to China, the world's second-
largest apparel exporter of western brands. Sixty percent of the export contracts of western
brands are with European buyers and about forty percent with American buyers. Only 5% of
textile factories are owned by foreign investors, with most of the production being controlled by
local investors.

Applications of Quality Tools in Textile sector

Quality Tools:
TQM places a great deal of responsibility on all workers. If employees are to identify and correct
quality problems, they need proper training. They need to understand how to assess quality by
using a variety of quality control tools, how to interpret findings, and how to correct problems. In
this section we look at seven different quality tools. These are often called the seven tools of
quality control and are shown in the following figure.

Cause-and-Effect Diagrams
Cause-and-effect diagrams are charts that identify potential causes for particular quality
problems. They are often called fishbone diagrams because they look like the bones of a fish.
The head of the fish is the quality problem, such as damaged zippers on a garment or broken
valves on a tire. The diagram is drawn so that the spine of the fish connects the head to the
possible cause of the problem. These causes could be related to the machines, workers,
measurement, suppliers, materials, and many other aspects of the production process. Each of
these possible causes can then have smaller bones that address specific issues that relate to
each cause. For example, a problem with machines could be due to a need for adjustment, old
equipment, or tooling problems. Similarly, a problem with workers could be related to lack of
training, poor supervision, or fatigue. Cause-and-effect diagrams are problem-solving tools
commonly used by quality control teams. Specific causes of problems can be explored through

19
brainstorming. The development of a cause-and-effect diagram requires the team to think
through all the possible causes of poor quality.

Flowcharts
A flowchart is a schematic diagram of the sequence of steps involved in an operation or process.
It provides a visual tool that is easy to use and understand. By seeing the steps involved in an
operation or process, everyone develops a clear picture of how the operation works and where
problems could arise.

Checklists
A checklist is a list of common defects and the number of observed occurrences of these defects.
It is a simple yet effective fact-finding tool that allows the worker to collect specific information
regarding the defects observed. For example, if a defect is being observed frequently, a checklist
can be developed that measures the number of occurrences per shift, per machine, or per
operator. In this fashion we can isolate the location of the particular defect and then focus on
correcting the problem.

Fig 2: Various Quality Tools

20
Control Charts
Control charts are a very important quality control tool. These charts are used to evaluate
whether a process is operating within expectations relative to some measured value such as
weight, width, or volume. For example, we could measure the weight of a sack of flour, the
width of a tire, or the volume of a bottle of soft drink .When the production process is operating
within expectations, we say that it is in control. To evaluate whether or not a process is in
control, we regularly measure the variable of interest and plot it on a control chart. The chart has
a line down the center representing the average value of the variable we are measuring. Above
and below the center line are two lines, called the upper control limit (UCL) and the lower
control limit (LCL). As long as the observed values fall with is no problem with quality. When a
measured observation falls outside of these limits, there is a problem. In the upper and lower
control limits, the process is in control and there is no problem with quality. When a measured
observation falls outside of these limits, there is a problem.

Scatter Diagrams
Scatter diagrams are graphs that show how two variables are related to one another. They are
particularly useful in detecting the amount of correlation, or the degree of linear relationship,
between two variables. For example, increased production speed and number of defects could be
correlated positively; as production speed increases, so does the number of defects. Two variables
could also be correlated negatively, so that an increase in one of the variables is associated with a
decrease in the other. For example, increased worker training might be associated with a decrease in
the number of defects observed. The greater the degree of correlation, the more linear is the
observations in the scatter diagram. On the other hand, the more scattered the observations in the
diagram, the less correlation exists between the variables. Of course, other types of relationships can
also be observed on a scatter diagram, such as an inverted. This may be the case when one is
observing the relationship between two variables such as oven temperature and number of defects,
since temperatures below and above the ideal could lead to defects.

Pareto Analysis
Pareto analysis is a technique used to identify quality problems based on their degree of importance.
The logic behind Pareto analysis is that only a few quality problems are important, whereas many
others are not critical. The technique was named after Vilfredo Pareto, a nineteenth-century Italian
economist who determined that only a small percentage of people controlled most of the wealth. This
concept has often been called the 8020 rule and has been extended too many areas. In quality
management the logic behind Paretos principle is that most quality problems are a result of only a
few causes. The trick is to identify these causes. One way to use Pareto analysis is to develop a chart
that ranks the causes of poor quality in decreasing order based on the percentage of defects each has
caused. For example, a tally can be made of the number of defects that result from different causes,
such as operator error, defective parts, or inaccurate machine calibrations. Percentages of defects can
be computed from the tally and placed in a chart. We generally tend to find that a few causes account
for most of the defects.

21
Histograms
A histogram is a chart that shows the frequency distribution of observed values of a variable. We
can see from the plot what type of distribution a particular variable displays, such as whether it
has a normal distribution and whether the distribution is symmetrical.

Cost of Quality
Quality means consistency in meeting customer expectation. The cost of quality is the cost of
yarn that met those expectations, combined with the costs that result when you fail to meet them.

Elements of Cost of Quality

Prevention
This is the cost of anything you do to prevent quality error or to maintain the consistency of
quality .it begins with the orientation and training that you provide to new employees. It can
include some part of cost of parching equipment of maintained of designing, planning and
engraining.

Inspection and Appraisal

These costs begin with the inspection of purchased goods and materials. The cost of inspection
through the work process and finished goods is included related documentation and record
keeping as well as the calibration of test equipment and laboratory changes add to these costs.
This category also includes surveying customer satisfaction levels especially in-service
companies.

Internal failure costs

These are the costs that occur when a quality defect is detected before it reaches the customer.
Most directly they include scrap and network costs. But the cost of reinsertion of idle time
because of quality failure, and the related administrative costs, would also be included.

External failure costs

These are all the related to quality defects that reach the customer. Some are direct returns
warranty and replacement costs. Field repairs the cost of responding to complaints. Others are
indirect roles cost because of dissatisfied customer, damage to representation and good will, the
cost of liability insurances.

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Methods of Quality Control
Piece goods quality control
On receipt of fabrics in the ware house, at least 10% are inspection as per 4 Points system/10
Points system/2.5 Point system/6.0 Point system. The most commonly used 4 Points system as
per below
Penalty points for various defects-
3 Inches or less is equal to 1 Point
Over 3, less than 6 Inches is equal to 2 Point
Over 6, less than 9 Inches is equal to 3 Point
Over 9 Inches is equal to 4 Point
A maximum of 4 points are changed in one linear yard.

Quality control in Cutting section

In cutting section quality is ensured in two stages.
a) Spreading quality control: Following the point are checked during spreading
Table marking.
Ends positioning.
Tension.
Narrow Goods
Ply height
Remnants
Marker placing

b) After cutting quality control: After each cutting blocks and bundles are checks on the
following points.
Miss cut.
Ragged cutting.
Pattern checks.
Matching Plies.
Notches

In process quality control (Sewing)

During the swing In process quality control is done by the line QCs through 7 pcs inspection
system. For critical operations 100% process inspection are carried out. The following
parameters are also checked in sewing process
a) Machine check.
b) Tension.
c) SPI checks
d) Needle check.
e) Cleanness.
d) Table inspection.
f) Inspection before wash.

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Quality control in washing section
a) Garments handling
b) Wash standard.
c) After wash thoroughly inspection.

Quality control in finishing sections

Following inspection/audit is done to attain AQL (1.5/2.5/4.0 etc).
a) Process inspection: Garments are checked process wise in the finishing section to identify
defects and pass only the past garments.
b) Two hourly audits: Every after two-hours audit is done on finishing lot to attain AQL the
required AQL.
c) End of the day final audit: At the end of the day accumulated lot of finished garments are
statistically audited to attain required AQL.
d) Lot final audit: On completion of packing of one complete lot of garment, QA manager
conduct statistical audit based on required AQL garments. Garments are offered for final
inspection by buyer /clients for shipment only when these are through in this audit.
The following parameters are also checked in sewing process
a) After wash garments must be keep in the box /table covering.
b) Thread sucking.
c) Iron inspection.
d) Measurements inspection.
e) Poly inspection of top of garments.
f) Inspection before cartooning.

Use of Enterprise Resource Planning (ERP) in Textiles

Definition
ERP can be defined as an accounting oriented information system for identifying and planning
the enterprise wide resources needed to take, make, ship and account for customer order. An
ERP system differs from the typical MRP-II system in technical requirements such as a graphical
user interface, relational database, use of fourth generation language and computer assisted
software engineering tools in development, client/ server architecture, and open-system
portability.

Why ERP in Textile Industry

Textile manufacturing revolves around three entities: customers, banks and suppliers. A
customer gives a sales order to the company and these forms the basis for production planning.
Raw material is purchased and dispatched to the mills. Receipts and payments are made through
banks. Before the ERP deployment, most of the work was done manually resulting in
inaccuracies: both incorrect and missing entries. With the new system, ERP has enabled
accountability, accuracy, and transparency without breaking the existing workflow.

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For textile products organizations, ERP provides capabilities that help optimize the entire supply
chain, from product design and configuration to preliminary planning and order processing,
capacity planning, production and delivery. By streamlining processes and delivering enhanced
insight into costs, the solution enables companies in the mill products industry to succeed in
todays marketplace by facilitating characteristics like: Quality Management, Production
Management, and Order Confirmation with Available-to-Promise Check, Accounting, and
Transportation.

Benefits

In the absence of an ERP system, a large manufacturer may find itself with many software
applications that do not talk to each other and do not effectively interface. Tasks that need to
interface with one another may involve:

1. Design engineering (how best to make the product).

2. Order tracking from acceptance through fulfillment.
3. The revenue cycle from invoice through cash receipt.
4. Managing interdependencies of complex Bill of Materials.
5. Tracking the 3-way match between Purchase orders (what was ordered), Inventory
receipts (what arrived), and Costing (what the vendor invoiced).

The major benefits of ERP are improved coordination across functional departments and
increased efficiencies of doing business. The implementations of ERP systems help to facilitate
day-to-day management as well. Some of characteristics of ERP are:

1. Single Point of Entry Data only entered at the source of that data
2. Everyone has the same data Single source of truth
3. Historical and authoritative data
4. Immediate information
5. Improved Visibility into all areas of the company

Limitations of ERP include

Though ERP has lots of benefits but it has some limitations too. Some limitations of ERP can be
summarized as below:

1. Customization of the ERP software is limited. Some customization may involve changing
of the ERP software structure which is usually not allowed.
2. ERP systems can be very expensive to install.
3. ERP vendors can charge sums of money for annual license renewal that is unrelated to
the size of the company using the ERP or its profitability.
4. Systems can be difficult to use training must needed for user.

Again there are some challenges for the textile processes to be incorporated with the information
technology. Top 5 Challenges of aligning IT with textile processes are:

25
 1. Demand planning: Long-term sales order forecasting.
2. Time period: Meeting customer delivery deadlines.
3. Production planning: Flexible production plans and reduction of plant setup time to meet
customer order specifications.
4. Integration: Non-integrated IT approaches resulting in lots of disparate IT systems.
5. Automation: Plant automation and quality management systems.

Types of software for Textile Industries

Going in for an integrated solution is the need of the hour for high to mid-end textile companies.
As per the enterprise IT spends, the vendors offer various custom solutions.

Software Name Website

ACS Optima www.cgsinc.com/softwaresoultions/index.html
Bann www.bann.com
BPCS www.ssagt.com
Datatex www.datatex-tim.com
Intenia Movex Fashion www.intenia.com/w2000.nsf/index
JD Edwards www.jdedwards.com
Pointman www.pivotpoint.co.uk
SAP www.sap.com
Style Fashion NA
Abas NA

TABLE 2: ERP SOFTWARE

Development of ERP package for Textiles

ERP facilitates a companywide integrated information systems covering all functional areas such
as manufacturing, sales and distribution, accounts, payables, receivables, inventory ,human
resources etc. ERP solution includes manufacturing marketing as well as finance sectors. The
main steps in development of such a software package are:

Defining the problem.

Designing the programmed.
Debugging.
Testing.
Documentation.
Maintenance.
Redesign.

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Implementations of ERP
ERP implementation is the customization and introduction of an ERP system in textiles. ERP
software was designed with the concept of the benefit of seamless integration to streamline
transaction processing tasks across an enterprise. While ERP software is touted to provide
tremendous benefits to the organizations that use them, there are numerous anecdotes about the
success and failure resulting from their use .What has been largely unexplored is the nature of
the use that plays an important role in determining the productivity and effectiveness of the use
as well as success and failure of the implementation and use. Respondents were asked what they
thought were the main barriers to implement an ERP system. The most frequently cite barriers
were:

1. Resistance to change.
2. Lack of top management support.
3. User training & education.

Existing ERP system:

DATATEX SOFTWARE
MTO / MAKE-TO-ORDER HIGHLIGHTS
FABRIC INSPECTION AND CUT OPTIMIZATION SYSTEM CATS

Leading ERP giants

Some of the leading ERP giants are as follows:

MICROSOFT
ORACLE
SPA ERP
PEOPLE SOFT ERP
UPS ERP

The textile industry in our country is one of the few industries in the country, which has the
potential to emerge as a true global player. Recognizing the fact that industry needs strategy and
time-bound action plan to convert its core competence in to a competitive strength as a producer
and supplier of top quality textiles at competitive prices. Enterprise Resource Planning (ERP)
system helps to achieve some key benefits like improved punctual delivery, reduced purchasing
cost, reduced inventory cost, reduced wastages, improved client relationship, and reduced lead-
time.

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Evaluation of successful firms
Productivity in the ready- made garment industry in Bangladesh is around 30-35% as compared
to international productivity norms which stand at more than 60%. One of the reasons for such
low productivity is poor quality. About 5% of the garments produced in Bangladesh are rejected
completely in the final inspection and around 15% must be altered before they can be exported.

Some leading textile manufacturers bear most of market shares and these are showing in the
following graph:

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Chapter 5: Company Profile
ABC Garments Ltd
Company Overview
ABC Garments Ltd being manufacturer of garments has been exporting a wide range of
garments for over 20 years based on the principle of reliability and quality for clients of all over
the world. It is now one of the most renowned suppliers of high quality garments in Bangladesh.

The well-equipped factory is an experienced garments manufacturer and exporter for overseas
markets. Ananta apparels produce variety of garments such Shorts, Bermudans, Trousers, Skirts,
Pants, Coats for men with Denim blended & stretchable fabrics and others materials. They are
indeed very strong and active in sourcing fashion materials at competitive prices from China,
Taiwan and Korea without compromising the quality. By emphasizing on systematic
management, rigid quality control and cost control, they are confident to provide the clients the
best quality products with highly competitive price and punctual delivery.

Primary Information
Company Name ABC Garments Ltd

Membership Type Ordinary Member

Year of Registration 2012-05-09

Contact Information
Contact Person Name MR. Salim Ullah
Contact Person Designation Managing Director

Addresses Factory
Address :
26,Mirpur Road,Dahka-1205 ,Bangladesh

Email :salim@spectra-bd.com
Web :www.abcgarments-bd.com

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 Factory Information

Factory Category C

Production Capacity 3200 PCS

Number of Employee (Workers Male: 150 | Female: 350 | Total :150

Corporate Social Responsibility

A corporations initiatives in social responsibility have broadened with the growth of its
business. This is especially true when social responsibility is woven into the fabrics of its
corporate

ABC Garments is a company of people who care about people and the communities we serve
and a partner of the businesses we manage. We have a proud history of doing business
honorably, of working to improve the quality of life and giving something back.

Social responsibility exemplifies our spirit of caring. We care for our environment, our
stakeholders, our customers and investors, our host communities, and our own people because
they are integral parts to our growth. Our programs are designed to enhance the relevance of our
social responsibility, endeavor as our partner with these vital linkages to our various businesses.

Social responsibility is a commitment we pursue for the long term as we continue to honor our
social covenant with our various key people. It is a part of our corporate character.

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Ananta Apparels Ltd
Company Profile
Ananta is a group of companies established in Bangladesh in 1992; Ananta started its voyage in
limited extent at Elephant Road, Dhaka. Ananta, which means infinite or unlimited in Bengali,
embraces the spirit of global trade. The company is dedicated to excellence in merchandising,
product development, production and logistics. They have earned a reputation throughout the
global apparel industry as one of the foremost factories in Bangladesh for the commitment to
quality, timely delivery and total value. Customers rely on them to deliver the best quality
products and superb service which enables them to successfully compete in the emerging market
place.

Ananta is a 100% export oriented woven Ready Made Garment (RMG) unit. It is under the
membership of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The main products are trousers, shirts, unlined jackets, overall, shorts of all type and school-
wears.

Key Information
Year of inception 1992
No of companies 6
Total sewing line 98
Total production floor space 9,00,000 sft
Manufacturing business Manufacturing business
Monthly production capacity 1.8 million pcs of RMG
Total work force 16,500 (Male female ratio: 42:58

Export Volume

Ananta apparels Ltd motto is to attain highest level of competence through continuous
development of the professional management. The export volume & value of the company has
been emerged drastically which was 73 million USD in the year 2011-12.

Corporate Social Responsibility

Ananta apparels Ltd commit to the vision of conducting business in a socially responsible and
sustainable way. Overall vision and aim is to find the way of successfully balancing our
economic activities with the necessary care for natural environment as well as for human beings
that are involved or affected by these economic activities. They therefore submit and business
partners in addition to the standards set for quality, business transactions and the protection of
the environment, to the following social standards and requirements.

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T.H Fashion
Company Overview
T.H Fashion is a factory with 6 production lines. This factory comes from with its Mother
concern the Impressive Group .The factory has been setup with strong security system by 24
hours C.C. TV monitoring and recoding system in all important event and position.
T.H Fashion has special child care and full time medical support. The fire drill team is well
equipped and trained to face any emergency situation. They are very regular on fire drill practice.

T.H Fashion is facilitate with fire resistance door, lift, canteen, dining, smoke detector, Auto fire
alarming system, Lab facilities, hydrant system, fire extinguishers, emergency exits, CT-PAD
area for packing, metal detector zone, 24 hours generator backup system and hosepipe with
heavy water force.

T.H Fashion is setup with 6 production lines with 860 (Approximately) skilled manpower which
production capacity is 1,20,000 pcs per months and run by the professional factory management
team.

Factory Name T.H Fashion

Factory Address 45 Hatirpul, 2nd floor, (Opposite To Motalib Plaza)

Hatirpul, Dhaka-1205, Bangladesh
Factory In-charge Mozammel Hoque
E-mail : mhoque@impressivegrp.com
Manpower 860 (Approx.)
Production Capacity 120,000 pcs per month
Total Space 65,000 Sq. ft.
Number Of Machine 412
Number Of Line 6

Corporate Social Responsibility

To provide free of cost quality education to children of garment factory worker.
Help children to become more self-reliant providing technical education, so that after
completion they may work at any sweater or woven factory independently without further
training or internship.
Upon completion of the move to the new plot, Sharaf'er Pathshala will also provide night
classes to domestic workers who wish to build their literacy skills.

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Chapter 6: Findings & Analysis
Findings
After going through all the data collected so far it can be seen that the condition of Bangladeshi
Garments Firms in using the advance quality tools and computerized ERP system is not up to the
mark. Most of the companies still follow the usual hand written method in case of identifying
problems or solutions. The mostly popular quality tool being used is the Onsite Inspection
method which is mainly the very traditional and the oldest used quality tools available. Though
the country is said to be developing, its leading industries and firms still remain and rely on the
back dated systems and method. However some companies are trying to make a difference in
their platform. Ananta Apparels Ltd. and ABC garments are two of them that are going to launch
their very own computer based system which may be implemented within the year. Just like
them others are also trying their best to make a change however some still are not intending to
create a difference rather stay how they usually were.

Some of the reasons why firms in RMG & Textile industry are not trying to make changes are:

Changes in the entire system will take a long time to be implemented which may prove
out to be inefficient for some companies.

Changes mean new training for employees which will turn out to be costly.

The traditional management and new management may not be able to cope with each
other due to this change which will create a dilemmatic situation in data collection which
will eventually create error problem.

If the change is successful than management may have to fire their old employees as
those employees may not be able to understand the system clearly which will provide a
bad image for the company.

Management and planning will prove to be a little tricky at the beginning of this new
system. So some companies will face difficulties to deal with and so they will drop the
project.

The entire renovation may be too costly for some companies to handle which will
demotivate them to accept the system etc.

To get an actual reading of the firms visited by us the questioners are provided on the other
pages.

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Questionnaire

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