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 Manufacturing Employment GDP Investment Market Capitalisation Taxes Salaries and Wages Contribution to R&D

67 % of total exports (US $ 7.5 Billion) 46% of total manufacturing 38 % of total employment 11 % of total GDP 31% of total investment 8% of total market capitalisation Rs. 4.5 Billion per Annum Rs. 44 Billion per annum 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 worlds 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 197071 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

Garment Productivity Means?

More production Less rejection More efficient Less labor cost Less pollution More profit Satisfied customer In time delivery High price
13

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

Dyed Fabric
Trims Labour Over Head Utility Bills Misc

40 to 50 % of the cost 50 to 60 % -------10 to 15%---------5 to 15 % ---------10 to 20 % --------5 to 10 % ---------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 manufacturers 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 (18721933), 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 cant 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 ones life Output

Work

Result
Gain Develop Grow Increased in knowledge Helpful for others

Input
Time Resources Wealth

Others time
Place Material (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 drink Turn down the heat Shake a leg Change 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 Total Pieces Rejected Rejected Due to Knitting Faults Rejected Due to Dyeing Faults Rejected Due to Stitching faults Misc

25890 2356 650 560 1050 96

Detail of Knitting Faults

Small Holes
Needle line Press off Oil stain Double stitch

150
250 50 150 50

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