BUET-0108-19

Name: Sabrina Binte Salam Name: Md. Irtesam Nasrat

Name: Aninda Kumar Name: Faiyaz Sadman Khan

Chowdhury
Introduction:
Bangladesh is the second largest apparel exporter in the world. As of a report by World Trade
Organization (WTO). However, the country’s position in the sector is at stake. Countries like
Vietnam and China are attracting foreign buyers due to their low cost, diversified product range
and better infrastructure. The world is moving towards total automation. If Bangladesh cannot cope
up with the change, then it will be permanently thrown out of the market. It is high time for
Bangladesh to catch up before our competitors do. It is time for us to implement the Fourth
Industrial Revolution.

Growth Benchmarks of RMG Industries

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
China India Vietnam Bangladesh

Burden of Customers Procedure Timeliness of Shipments

Quality of Overall Infrastructure
The Fourth Industrial Revolution will see machines and computers doing all the industrial work
starting from data collection to manufacturing to product distribution through data analysis.
Advancements of the industry 4.0 include Internet of Things (IoT), cloud computing, Artificial
Intelligence (A.I.), advanced robots etc.

Average Annual Growth of RMG

16
Industries 2010-2016
14
12
10
8
6
4
2
0
China India Bangladesh Vietnam

Source of graphs: https://www.techpacker.com/blog/top-4-asian-countries-for-garment-

manufacturing

Despite the inferior condition in Timeliness and Quality of Infrastructure, Bangladesh is a rapidly
growing garments industry. Here is what we can do to catch up:

Proposed Solution:
Where to bring automation:
1. Inventory management
2. Production
3. Product sorting
Inventory management:
Advanced Robots:
The movement of raw materials to production lines is often a time consuming portion of the Supply
Chain. If robots are assigned the work of carrying the load, then lead time will be cut. Such methods
have already been implemented in the warehouses of Alibaba [1]. They are used to carry objects or
cartons from the end of the production line to their respective positions in warehouses. They may
also be used to transport them from warehouses to vehicles which will in turn send them to retail
outlets.
Production:
The fourth industrial revolution comprises Internet of Things (IoT) because of the extensive
implementation of IoT.
Internet of things (IoT):
During product manufacturing errors may evolve and mechanism may suddenly stop working
properly. Also, a lot of data is needed by the company to accurately manufacture products desired
by the consumers. This huge amount of data can get difficult to manage and therefore a smart
solution is needed.

Source:
https://eandt.theiet.org/content/articles/2015/08/national-instruments-launches-new-industrial-iot-
kit/
This phase consists of at least three sub-processes, namely:
• Cutting
• Sewing
• Trimming

Cutting:
The skill of Bangladesh RMG would not stop investors from diverging to other “automated” nations
because products would be a lot cheaper with, perhaps, only a very slight fall in the fitting. Some
countries have already implemented the use of fully automatic, computer controlled fabric cutting
machines. Instead of placing the marks by hand, the user just has to input a file via a USB port.
That file will instruct the Automatic Cutter to cut the fabric accordingly. These machines cost
between USD 12000 and USD 20000 per unit [2]. A typical auto fabric cutter can cut at
approximately 60 inches a second [3] which is ten times of human speed (about 6 inches a second).
Therefore, productivity is likely to go up by ten times as well. This would cut a large portion of the
lead time, making orders more secured. Moreover, the wages of ten workers is being saved, which
can be invested in other sectors, which will employ workers in future.

Sewing:
Artificial Intelligence (AI) and Machine Learning (ML) based softwares like Enterprise Resource
Planning (ERP) /Shop Floor Control software may be implemented with smart sewing machines to
carry on with the sewing operation. A possible combination is Juki Smart Industrial Sewing
Machine paired with BlueCherry Shop Floor Control.

[5][6]
Juki DDL-9000C, cost $1200/unit (smart one)
Max. sewing speed: 5000 stitches/min
Max. stitch length: 5 mm

Juki DU-1181n, cost $600/unit (conventional one)

Max. sewing speed: 2000 stitches/min
Max. stitch length: 9mm
Benefits of the Smart machine over conventional ones:
• 250% times the sewing speed
• Ease of troubleshooting
• Convenience
• Efficiency
• Guaranteed Return of Investment (ROI)
• Easy unification of data from sewing machine and sewing operator over the internet.
• Changing of production behavior (if necessary) is as easy as making a code and pushing it
in the system via firmware updates.
 • RFID tagging the fabric bundle that’ll automatically reconfigure the sewing machines and
tune it as needed via pre-programmed software.
• Very accurate early prediction of different possible scenarios, it’ll considerably eliminate
damage that might occur as well as less downtime.
• Real-time data monitor and analyzing makes troubleshooting easy and accurate.

Trimming:
Trimming is only necessary when clothes are sewn by hand because that is when there is a higher
chance of excess thread. Once the system is automated, the amount of excess thread is minimized,
eliminating the need for trimming. However, the system will check for abnormalities and sort them
out for future manual modifications.

Product sorting:
Artificial intelligence is now capable of recognizing the face of a social medium user. Given this
capability, it is very easy for a computer to recognize products according to their color and pattern
and hence sort them accordingly [4]. Garment sorting is a labor-intensive process. It requires a large
floor space. It is a basic requirement that the correct product is supplied to the consumer. New
modular technology offers scalable systems that can meet the requirements of any size facility for
a much more manageable investment. By designing solutions that are more flexible and scalable,
we can now provide solutions for practically every uniform rental facility – independent of current
size or future expansion requirements.

Implementation of our proposal:

Cutting:
• Each production line will be replaced by 1 CNC Cutting Machine
• Each CNC Machine Costs $20,000 on an average
• Replaces 15 persons on each Production Line
• Cost savings: $1600/month
• ROI: within 14 months (taking factors like downtime and maintenance into account)
• The 15 replaced workers will be sent to workshops for first 6 months.
• 5 out of 15 workers on each line will be discarded (net)
• 5 will be sent to sewing line (to increase production to even out the increased cost)
• 5 will come back to cutting with knowledge of maintenance and troubleshooting as required.
Sewing:
This is where humans are compulsory to increase productivity. Automated robots like (e.g. Sewbot)
are not precise enough as an experienced worker and also comes in with major risks and other
complexities.
Each production Line will be consisted of 20 Advanced Sewing Machines
Each machine with 2.5x the capacity of sewing speed and 3x more precision (from machine specs
and user feedback)
(DDU-9000C vs DU-1181N)
Cost Increase: $12,000/line
Each person can produce 3x unfinished garments
One production line will be 3x more productive than before.

A Final 125% increase in production per line as workers from packing and cutting will be diverted
to sewing facility.

ROI:6-8 months (with everything considered)

Packing:
Each packing line will be equipped with 1x AutoFlow Packing Machine
1x per Packing Line
Cost: $35,000/each
It’ll pack 20-80 packs/min
40x more packs/min
If each line contains 20 workers,5 will be kept as they are.
10 will be employed in Sewing
5 will be employed in QC line
(as working in packing will naturally make these workers well aware of flawless products thus
reassigning)
Inventory Management:
Total 10 Machine are required to facilitate our whole inventory of around 40,000 sqft
Each machine costs at about $20,000
Payload 500 kg/each
Total 10*20,000= $200,000
Total $3000 Saving on each lot of delivery (5 days of Lead Time taken as standard)
2-3 deliveries/month
ROI will be 40 months
Out of 100 people occupied in inventory, approximately
70 will be out of job.
30 will be brought back in to the system with knowledge of computers and other systems to
supervise this new inventory management system.
We’re taking the major hit of unemployment in this section only.
Initial Value of Investment (i.e. cost of investment) =$10,000+$50=$10,050
Final Value of Investment=$12,500+$500−$75=$12,925
ROI=($10,050$12,925−$10,050)×100%=28.60%
 ROI Time in Different Phases of Production

40
35
30
25
20
15
10
5
0
Cutting Sewing Inventory Packing
Management

ROI (in Months)

On this whole procedure,

We can boost our production by roughly 300%
In ROI periods, we see that we’ll have to deal the decrease in profit. After the ROI period is
completely over, we’ll be getting all the profit from the increased production rate.
Net unemployment will be 30% as per this rough calculation. [11]

Befitting of our proposal:

The fourth industrial revolution aims to achieve these goals and through the use of IoT and
Automation, the RMG sector will be able to achieve them all.
1. Interconnection (cloud computing)
2. Information transparency
3. Technical assistance
4. Decentralized decision
Unemployment:
Unemployment is an inexorable consequence of the Fourth Industrial Revolution. Nevertheless, it
is much harder to visualize the jobs that are indirectly created by automation than it is to watch the
direct loss in jobs.
• It is not necessary that the new jobs will be in the apparel industry only. The robots that are
being created open up a whole new industry in an economy. This vast sector will
undoubtedly require a new labor force. Until Bangladesh catches up to manufacturing robots
themselves, below are some other jobs that the population can reply upon.
• Cutting of labor cost means cheaper prices. This means that people can buy the same
products for lower prices. As a result, people will save more and with that money will go
for holidays, watch a sports event or visit amusement parks. The recreational and tourism
sector will require a whole new force of workers to handle the new demand.
• With the need to produce more electricity, the power sector will require new workers: both
graduate and labor force.
• With the capacity to produce more, Bangladesh can then expand the types of apparel she
produces. This will create an almost non-existent market of young, enthusiast fashion
designers.
• Running the machines requires a large amount of power. Generating such power just by the
help of non-renewable resources is not possible. To save non-renewable resources as well
as to produce such large amounts of power, companies will have to tap into renewable
resources. Thus, plants for this purpose will have to be created and workers who lost their
jobs in the garments sector can be reallocated there.

With these and more unseen fields of jobs opened, it is possible to bring people out of “Automation
Anxiety”, a term existent since as early as the 1960s.

PESTLE analysis:
Political
1. Uruguay Round agreement made trades liberal, increasing competition. [7]
2. Bangladesh not able to fully enjoy duty free access to EU markets due to strict Rules of
Origin (ROO)[7]
Economic
1. Delay in getting materials, uncertainty of electricity and taxation hinder the full working
potential of Bangladesh garments sector. The monetary issues, however, can be covered by
the revenue earned from exporting the materials. After all, Bangladesh holds the second
place in worldwide garments export.
2. High interest rates (9% to 16%) and the difficulty in submitting reliable financials to banks
make it difficult for factory owners to secure loans. The factories with better international
relations are treated with preference. This inhibits growth of the sector. [9]
3. Budget for buying foreign machinery.
 4. Duties and Tariffs on foreign machinery should be mitigated to make production profitable
for non-government industries.
Social
1. The social and environmental status set up by Bangladesh Environmental Law are not up to
the international standard. [7]
2. Recent disasters in garments factories have concerned foreign investors over safety.
Technological
1. The standard Lead Time set by international standards is 30 to 40 days, but for Bangladesh
it is 90-120 days for woven and 60-80 for knit products. [8]
2. The government should open up new fields to allure Bangladesh engineers from going
abroad. The funding on technological advancement should be improved.
Legal
It is essential to impose laws on automation to ensure worker safety and enhance productivity. The
laws have to take into account factors like, minimum clearance around robotic arms and maximum
operating hours among others. The laws have to be in accordance with international standards that
the US and European countries have set up.
Environmental
1. Running so many new machinery requires a great deal of energy input because technology
will be hitting nearly all respects of life in the coming years. To compensate for the increased
demand, the country might have to burn more fossil fuels, adding more to its Carbon
Emissions. Therefore, Bangladesh has to turn to renewable sources of energy, which itself
requires further funding and research.
2. An abundant amount of waste materials is continuously dumped into the rivers of
Bangladesh. An increase in productivity means more waste. The government should
therefore take strict measures in terms of waste management. Environmental laws regarding
waste mass and treatment should be imposed upon factories.
SWOT analysis:
Strength
1)Automation will greatly increase productivity,
generating larger revenue.
2) Machines will replace most human labor, cutting
labor cost.
3) Bangladesh is going to be the 3rd fastest growing
economy in the world in 2019 and the exports of the
apparel sector is a major contributor in this aspect.
The current GDP growth rate is 7.0% and according
to a UN report, the GDP growth rate is expected to
be 7.7% in fiscal year 2022-2023. FDI in apparel
sector rose by 15.7% in 2018. [12][13][14]
SWOT
Analysis
Opportunity
1) The ability to produce quality products in
shorter time will be greatly increased by
enhancing and modernizing the production
process
2) The lead time will be decreased.
3) Turnover generated from implementation of
Industry 4.0 can create more jobs in RMG and
beyond (as discussed in “Unemployment”)
Weakness
1) Automation will trigger massive unemployment.
2) Companies will inevitably face tariffs and duties
while importing the machines adding to company
expense.
3) Unexpected disasters such as a break-out of fire
and weak infrastructure is a safety risk very common
in Bangladesh.
Threats
1) despite advancements, technological challenges
and trade-offs still vary from one company to
another.
2) Delay in logistics shipments, sudden loss of
electrical power may affect the lead time.
3) The standard Lead Time set by international
standards is 30 to 40 days, but for Bangladesh it is
90-120 days for woven and 60-80 for knit products.
Key Point Indicators (KPI):
Sample cutting production:

As we know, sewing is the most crucial part of RMG production followed by cutting, trimming and
packing. We’ll monitor our proposed solution by setting KPI for these sectors only.
Sewing Efficiency Plan:
Cutting:
Cutting Efficiency: We expect an increase as we’re using Computerized Numerical Control (CNC)
cutters.
Cutting Production: Will be more than before (expected)
DHU: It is expected to be a lot less as there will be no bad cuts.
Cutting Delay: expected to be zero

Sewing:
Line-wise Sewing Efficiency Calculation
Time consumed to yeild
% Efficiency = Total Working time

Can be rewritten as
Total pieces made∗SAM of Operation
% Efficiency = Total Working Hour∗60
∗ 100

Where S.A.M: Standard Allowed Minutes

• Ratio between any two of these, Production, Total Hour, Manpower and Machine should be
optimum. The optimum value would be obtained through data analysis by Artificial
Intelligence software, for example: Jaza[10]
• Machine Trouble/Downtime: As we will be tracking all the catalysts that affects our
production in real time using ERP, as soon as a downstream in production is detected,
primary troubleshooting will start automatically.
• Defects per Hundred Units (DHU): As sewing will be done by the latest smart Juki Sewing
machines backed by standalone advanced management software, DHU will be substantially
less.
• Plan versus Actual Production Ratio: We will get a production forecast if anything goes
haywire during production. This will be provided by the ERP software.
• Operator Turnover rate: Operator turnover rate will initially increase with these as a large
portion of the workers will come out to be underqualified to operate these cutting-edge
machines. So to overcome this huge number of operator turnover rate, we must deploy
workshops in phases to bring the workers back to our system.
After the certain period of time, the turnover rate will return to normal.
Conclusion:
In this was we will obtain redistribution of work force. Production will be increased by about 300%
to cope up with the increased cost. The policy should be to take loans rather than to take it from
profit. Profit will keep the business.
Bangladesh has been the tiger in the international garments market for more than a few decades. It
will be very disappointing if our country cannot hold on to its position due lack of infrastructure
and incentives. It is high time to address the reality that we are falling behind in competition just
because of the lack of appropriate technology. It is high time to catch up the Fourth Industrial
revolution. And it is high time for Bangladesh to emerge as the New Asian Tiger.
References:
[1] https://www.youtube.com/watch?v=FBl4Y55V2Z4
[2] https://www.alibaba.com/showroom/automatic-fabric-cutting-machine.html
[3] http://www.sewnproducts.com/c-125.html
[4] https://www.softrol.com/solutions/garment-sort-systems/
[5] https://www.softwareadvice.com/erp/bluecherry-profile/
[6] https://www.cgsinc.com/en/bluecherry/shop-floor-control
[7]http://www.assignmentpoint.com/science/textile/compliance-of-government-policy-by-
readymade-garments-of-bangladesh.html
[8] http://www.assignmentpoint.com/science/textile/problems-garments-industry-bangladesh.html
[9] http://rmg-study.cpd.org.bd/remediation-financing-bangladeshs-ready-made-garment-sector/
[10] https://jaza-soft.com/
[11] Research on Performance and Financial Analysis of Shahin Group under the supervision of
S.M. Arifuzzaman (Assistant Professor, BRAC University)
https://drive.google.com/file/d/1St9f2zNWh0CejzTEl6NAdTwN79kZCbIY/view?fbclid=IwAR1
_YbSgT9LRODU_ZTekigP8NLxOpUnsKZgyBeefLjZRRIjRbOVCzJv36kg
[12]https://www.dhakatribune.com/business/2019/01/22/bangladesh-to-become-3rd-fastest-
growing-economy-in-world-in-
2019?fbclid=IwAR36_v4mpViJWmQKk9kA5w45bYBwWrMGrmANvTm-
PDivoq7t4HxruX6V7-c
[13]https://www.dhakatribune.com/business/2018/09/06/gdp-growth-rate-expected-to-reach-8-25-
this-
year?fbclid=IwAR3zAxSq4E11QdPVeWi9wvAp7D39Bd_FEJ04_mza0YME6B5YI9zDwZt-0DI