Productivity Improvement Center

Introduction

Bangladesh produces garment with lowest cost but poor productivity.
The labour productivity rate has shown among the south Asian countries:
Country Units Labour Cost Wages Productivity $ per Shirt $ per Year Shirt per worker per year Bangladesh 0.11 290 2536 India 0.26 668 2592 Pakistan 0.43 1343 3100 Sri lanka 0.79 570 719*

Source: Labour Management in Development Journal, 2001, Vol.2 Number 7P.5

* = Productivity measured by shirts / workers / year could be misleading for Sri lanka since Sri lankan shirts are in the high end of the market and high value product. In terms of quality Sri lanka is rated No. 2 after Hongkong.

Bangladesh garment sector is not yet well positioned to compete in the expanded global garment market (US $ 1.95 billion in 2001 and projected 15 billion by 2010), as most of the companies continue to operate with a manufacturing orientation accepting orders for their capacities at low price. The growth rate is about 18% per year in term of volume. However it is not that much growth rate in terms of global expansion rate. The following table shows the growth rate of RMG sector in Bangladesh.

The RMG sector in Bangladesh has transferred its market position from comparative to competitive & efficient industry. It came about as a result of benevolent accommodations extended to Bangladesh as a developing country. Buyers came to Bangladesh of their own volition and it was at their behest that the industry grew and thrived. Since quality, competitiveness, and efficiency were not required to attract buyers, these aspects have remained largely ignored by the manufacturers of RMG in Bangladesh. The output of the RMG sector in Bangladesh is typified as low cost, low value added and poor quality. The high-end market niches, which demand high value addition and high quality, are well beyond the reach of the RMG manufacturers in their present state.

When the preferential accommodations are withdrawn in 2005, other countries with preferred status will take Bangladesh's place as low cost producers. The RMG sector in Bangladesh, with its poor quality and low productivity will be no match for the competitive producers. Sri Lanka has a smaller industry, but the annual turn over in volume and in dollar value is comparatively far superior to that of Bangladesh.

The higher volume is explained by productivity. Factories in Sri Lanka operate at 80% - 90% of potential capacity. Whereas in Bangladesh, according to some experts, productivity is between 35% and 55% of potential capacity with very few exceptions. For the RMG sector in Bangladesh, productivity alone can make a difference between life and death.

In addition that labour cost has increased radically but buyer did not increase the C&M price that proportionately. Consequently, productivity has become the vital issue for maintaining your profit margin in your factory.

Thus we can say that skilled managers organize the production floor for efficiency and quality.

Services Provided by CFTM

If you would like to develop your productivity in your factory, CFTM provides complete solution.

• To identify the present benchmark of productivity & barriers of productivity and provide specific recommendations to improve the productivity.
• To set up an Industrial Engineering Department in your factory.
• To execute the different recommendations of improving productivity.
• Follow up and maintain the department for next 6 months.

Objective of above services

If you consider the above services, we will ensure the following results will enjoy the factory:

• Rate of production will be increased.
• Efficiency Rate will be increased.
• Cost will be reduced.

Duration of the Services

Duration of the project depends on size or capacity of a factory. It requires full time services from our end. It takes at least 1-6 months.

Manpower from home and abroad (Sri Lanka):
• Rate of production will be increased.
• Efficiency Rate will be increased.
• Cost will be reduced.

Cost of Service

Cost depends on factory size and condition. Cost is based on offer letter.

Terms & Conditions

• Company Managing Director and Top Management have
   support 100% to Consultants team.
• New Staff requirements and levels of education will be recommended by the consultant for the successful implementation of the services.

If you have any further queries, Please do not hesitate to contact with us.

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CFTM provides the training in RMG sector of Bangladesh in Cooperation with :