ROADMAP PRESENTATION

Technical Cooperation with

Special Initiative Jobs program
in Ethiopia. Upgrading the
Textile and Garment Supply
Chain in Ethiopia.

GFA CONSULTING GROUP GMBH

FACTORIES COVERED UNDER SI JOBS PROJECT (IN ORDER OF PRESENTATION)

1. Chagni Ginnery, Chagni

2. Gendawuha Ginnery, Gendawuha
3. Bahirdar Textiles, Bahirdar
4. Kombolcha Textiles, Kombolcha
5. Abay Garment Co, Gondor
6. Telaje Garments, Kombolcha

1/6/2021 No 2
OBJECTIVE OF THE PROJECT

1. Increasing the export competitiveness of the factories by optimizing their efficiencies and improving the product
quality through the whole value chain.
2. Intensive on-job training and implementing customized solutions.
3. Connecting the factories with prospective buyers.
4. To create quality jobs to take care of the rampant unemployment for the youth of the nation.

1/6/2021 No 3
1. Chagni Ginnery, Chagni

1/6/2021 No 4
EXECUTIVE SUMMARY

►Genda wuha Cotton Ginning factory plc, Chagni Plant is a Roller Ginning Plant based in Chagni Town
►It was implemented 2 years ago and the ginning machineries are supplied and erected by Bajaj Steel
Industries Ltd.
►The ginning plant consists of 18 roller gin stands of Golden Jubilee Model.
►The annual ginning capacity of all the gin stands combined is 20,000 tons of raw cotton with an
estimated output of 7,200 tons of lint cotton.
►The ginning plant is supplied with a weighbridge of 160 tons weighing capacity.
►The mission objectives of this endeavor is to undertake baseline studies and needs assessment and
develop a road map for tackling the various challenges the plant faces while producing quality
outputs.

12/4/2020 5
EXECUTIVE SUMMARY

►The outputs of the mission will be developing a consolidated road map in view of the needs
assessment that will help the ginning plant enhance its capacity utilization and ensure quality pro-
duction thereby enhancing the skill and knowledge of the work force.
►To achieve the aforementioned outputs data collections have been conducted, interviews of top and
middle management have been undertaken and findings and feedbacks have been communicated
with the various high-ranking officials of the company.
►Strategic interventions are suggested with possible time line so that the challenges can be over-come
in due time.

12/4/2020 6
OVERVIEW OF THE OPERATIONS

►Factory Name: Genda Wuha Cotton Ginning Factory Plc, Chagni Plant
►Location: Chagni town
►Material processed: 100% cotton
Installed Capacity:

S. N. Department Capacity Unit

1 Area 10 Hectares
Seed Cotton
2 20,000 Ton
Processing
3 Lint Production 7,200 Ton

4 Weigh bridge 160 Ton

MACHINERY DETAILS:

S.N. Particulars Value Unit

1 Number of machines 18 Nos.

2 Model Bajaj Steel Industries Ltd

3 Make India

4 Age 2 Years
ACTION PLAN Targeted Areas Action to be taken
*REQUIRES INVESTMENT
Small holder farmers
management
Records management
Chemical usage guidelines
Stakeholder support and
managements
Contract implementation
Capacity building on work practices procedures
Storage management
Fire safety measures
Raw Cotton grading*
Internal communication system
Material Traceability System
Maintenance schedule
Spare parts management
Lubrication and sintering*
Ginnery cleaning time
Ginning settings
Lint Cotton grading*
Settings measurements
Standardization of process
Efficiency and utilization
parameters
Process optimization
Laboratory installation*
Technical workshop installation*
Electrical and utility consumption
REQUIRED TRAININGS

1. Contract Farming Management and Practices

2. Roller Gin fitting based on cotton parameters
3. Operation & Maintenance follow up for Roller Gin Plants
4. Electrical Machine Maintenance for complete roller gin plants
IMPLEMENTATION TIMELINE
*REQUIRES INVESTMENT

S. N. Activity M1 M2 M3 M4 M5 M6 M7 M8

1 Planning and meeting with Client

2 Implementation Guideline – Farming and Ginning

3 Training on Farming Practices*

4 Training on Ginning*

5 Retraining on Farming and Ginning

6 Training on Quality Control*

7 Training on Machinery maintenance*

8 Retraining on Quality Control and Maintenance

2. Gendawuha
Ginnery, Gendawuha

1/6/2021 No 13
EXECUTIVE SUMMARY

►Genda wuha Cotton Ginning factory plc, Genda Wuha Plant is a Roller Ginning Plant based in Genda Wuha Town
►It was implemented 8 years ago and the ginning machineries are supplied and erected by Bajaj Steel Industries
Ltd.
►The ginning plant consists of 18 roller gin stands of Golden Jubilee Model.
► The annual ginning capacity of all the gin stands combined is 20,000 tons of raw cotton with an estimated
output of 7,200 tons of lint cotton.
►The ginning plant is supplied with a weigh-bridge of 120 tons weighing capacity.
►The mission objectives of this endeavor is to undertake baseline studies and needs assessment and develop a
road map for tackling the various challenges the plant faces while producing quality outputs.
►The outputs of the mission will be developing a consolidated road map in view of the needs assessment that will
help the ginning plant enhance its capacity utilization and ensure quality production thereby enhancing the skill
and knowledge of the work force.
►To achieve the aforementioned outputs data collections have been conducted, interviews of top and middle
management have been undertaken and findings and feedbacks have been communicated with the various high-
ranking officials of the company.
►Strategic interventions are suggested with possible time lines so that the challenges can be over-come in due
time.

12/4/2020 14
OVERVIEW OF THE OPERATIONS

►Factory Name: Genda Wuha Cotton Ginning Factory Plc, Genda Wuha Plant
►Location: Genda Wuha town
►Material processed: 100% cotton
Installed Capacity:

S.
N.
Department Capacity Unit
1 Area 5.25 Hectares
2 Seed Cotton Processing 20,000 Ton
3 Lint Production 7,200 Ton
4 Weigh bridge Capacity 120 Ton
Cotton Farming Images

Auto-Feeder and Lint Cotton Output

Ginning machinery Section(Bale Press) Ginning section

Inadequate and Poor Notice Improper storage of

Poor maintenance
board fire safety cylinders
facility

Bale storage Bale storage Bale loading

section section system
Poor fire safety pipe Improper roller
condition(Uncovered
) sintering
MACHINERY DETAILS:

S.N. Particulars Value Unit

1 Number of machines 18 Nos.

2 Model Golden Jubilee

3 Make Bajaj Steel Industries Ltd

4 Age 8 Years
FACTOR COSTS

S.
Factors Values Unit
N.
1 Power Rate 0.04 USD / kWh
Total manpower
2 591.47 USD / day
wages
3 Packing cost 2.32 USD / bale
Logistics Cost
4 59,974.13 USD
(annual)
5 RM Cost 0.61 USD / kg
Other costs
6 73,966.42 USD
(annual)
ACTION PLAN
* REQUIRES INVESTMENT Targeted Areas Action to be taken
Small holder farmers management
Records management
Chemical usage guidelines
Stakeholder support and managements
Contract implementation procedures
Storage management
Capacity building on work practices
Fire safety measures
Raw Cotton grading*
Internal communication system
Material Traceability System
Maintenance schedule
Spare parts management
Lubrication and sintering*
Ginnery cleaning time
Ginning settings
Lint Cotton grading*
Settings measurements
Standardization of process
Efficiency and utilization
parameters
Process optimization
Laboratory installation*
Technical workshop installation*
Electrical and utility consumption
REQUIRED TRAININGS

1. Contract Farming Management and Practices

2. Roller Gin fitting based on cotton parameters
3. Operation & Maintenance follow up for Roller Gin Plants
4. Electrical Machine Maintenance for complete roller gin plants
IMPLEMENTATION TIMELINE
* REQUIRES INVESTMENT

S. N. Activity Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

1 Planning and meeting with Client

2 Implementation Guideline – Farming and Ginning

3 Training on Farming Practices*

4 Training on Ginning*

5 Retraining on Farming and Ginning

6 Training on Quality Control*

7 Training on Machinery maintenance*

8 Retraining on Quality Control and Maintenance

4. Bahirdar Textiles,
Bahirdar

1/6/2021 No 26
EXECUTIVE SUMMARY
 Bahir Dar Textile Share Company (BDTSC) is a composite textile mill situated in the town of Bahir Dar,
 Installed spinning capacity - 6000 ring spindles and 2400 rotors
 Installed looms - 178 air-jet and rapier looms
 Processing and garments production capacity- 40,000 m of fabric and 10,000 sets of made-ups per day.

 Project involves
 Development of an upgrading roadmap based on a baseline study and needs assessment
 Implementation of the upgrading interventions to international best practice
 Managerial and technical training,
 Creation of linkages between the companies and research and educational institutions
 Creation of linkages with potential international buyers

 Identified issues include

• Poor quality lint,
• inadequate machine utilization,
• inadequate production and quality control processes
 Interventions include
 Standardization of process
 Capacity building on works

1/6/2021 No 27
OBJECTIVES

►Undertaking a Baseline Study at BDTSC

►Undertaking a Needs assessment at BDTSC
►Devevelopment of Roadmap for interventions
►Hand holding BDTSC in production of Export quality fabrics
►Conducting of training at BDTSC
►Linking of BDTSC with external buyers

1/6/2021 No 28
 SPINNING MACHINERY
►Spinning
Rotor Spinning line
►Blowroom line 600kg/hr shared
►Carding machines C-60 Model -4 (integrated with drawframes)
► Drawframes RSB Modul Model - 6 (4 integrated with Carding)
►Rotor Spinning frames 923 Model- 6 (2400 installed rotors, 905 idle)

Ring Spinning Line- Not operational during study

►Blowroom 600kg/hr shared
►Carding C-60 Model - 3
►Drawframe SB-D 45 and RSB D 45 Models - 2
►Lap former E-32 Model - 1 (Not used productively since installation)
►Comber E-66 Model-3 (Not used since installation)
►Speed frame 1 (12 spindles)
►Ring spinning G-35 Model -5 (6000 spindles)
►Winding Murata - 120 drums
►Twisting- 2 out of 3 not in operation

1/6/2021 No 29
WEAVING MACHINERY

Direct Warping Machine -48000m/shift installed capacity

►Ramallumin – 2 Nos

Sizing 32,500m/shift installed capacity

►Karl Meyer – 1 No
►Rotal - 1 No

Looms
►Picanol Omniplus 800 - 66 Installed, 56 operating
►Somet 112 Installed, 50 operating

1/6/2021 No 30
PROCESSING AND GARMENTS PRODUCTION CENTRES

PROCESSING AND GARMENTS

1 Jumbo Jigger Swastic 3 Underutilized

2 BTM Stenter ARTOS 1 Underutilized

3 Printing Machine Ziemer 1 Underutilized

4 Sewing Machines Juki 66 Underutilized

5 Five-thread sewing machine Juki 9 Underutilized

6 Folding machines Menscher 2 Underutilized

7 Cutting machine Anysew 1 Underutilized

8 Button hole machine Brother 2 Underutilized

9 Button Attaching machine Brother 2 Underutilized

1/6/2021 No 31
DEPARTMENT-WISE ASSESSMENT

1/6/2021 No 32
BLOWROOM SUMMARY

►Poor lint quality

►Inadequate recording systems
►Lack of effective preventive maintenance
►Inadequate quality management practices
 Non standard bale weights
 Waste addition not fixed
 Poor bale laydown practices Between bale variation Poor Bale laydown practice

Excess trash in lint

1/6/2021 No 33
CARDING SUMMARY

►High card sliver trash

►Poor quality checks
►Poor record keeping (maintenance and quality)
►Poor card wire maintenance
►Poor work practice
 Poor can randomization
 Exposed running parts
Poor can Numbering Exposed rollers in operation
 Covered sensors

Covered sensor

1/6/2021 No 34
ROTOR SPINNING

►Poor rotor utilization

►Damaged essential machine parts

3000
Idle rotor units
Damaged rotors
2500

2000

1500

1000

500
Idle 905 Operational 1495
0
Rotors

1/6/2021 No 35
WARPING AND SIZING

►Poor process monitoring

►Poor maintenance of records
►Poor beam storage
►Poor lighting
►Poor beam quality

1. Improper beam storage 2. Unequal package lengths 3. Inadequate lighting

►Buried Ends

4. Uneven Beam

1/6/2021 No 36
WEAVING

►Low operating efficiency

►Poor machine utilization
►Spares shortage
►Inadequate preventive maintenance
►Poor atmospheric conditions
►Inadequate supervision 1. Poor Beam width setting 2. Poor maintenance practices

3. Improper warp drawing technique

1/6/2021 No 37
PROCESSING AND OTHERS

►Dark shades dyeing challenges

►Inadequate utility consumption monitoring
►Inadequate response to general breakdowns
►Inadequate marketing structures
►Not Internationally certified on Quality Management
►Not internationally certified on Environmental Management
►Not Export Ready

1/6/2021 No 38
KEY INTERVENTIONS

►Capacity building-
Process Management
Maintenance management*
Time management

►Process Parameters
Atmospheric control*
Settings optimization
Waste reduction
Compressed air management*
Efficiency
►Short term Experts- Card Wire mounting*

►* Require capital investment

1/6/2021 No 39
PROPOSED INTERVENTION ROADMAP
S. N. Activity Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
1 Planning and meeting with Client
2 Implementation - Mixing, Blow Room & Carding
3 Training on Mixing & Blow Room
4 Training on Carding
5 Retraining on Mixing, Blow Room & Carding
6 Implementation - Draw Frame & Speed Frame
7 Training of Draw Frame & Speed Frame
8 Implementation - Ring frame, Autoconer and Rotor
9 Training on Ring Frame & Rotor
10 Training on Autoconer
11 Retraining on Ring Frame, Autoconers and Rotor
12 Training on Quality & Maintenance - Spinning
13 Overall training of Management on Process Monitoring
14 Training on Warping & Sizing
15 Training on Weaving - Loom shed
16 Retraining on Warping, Sizing and loomshed
17 Training on Quality & Maintenance - Weaving
18 Training on fabric pre-processing
19 Training on fabric dyeing
20 Training on fabric printing
21 Training on fabric finishing
22 Training on Quality and maintenance- Processing
23 Retraining on Processing
24 Marketing Strategy development
25 Reports

1/6/2021 No 40
SHORT TERM INVESTMENT NEEDS

 Spinning spares
 Card wire replacement
 Drawing (Autolevellers)
 Rotor Spinning (Electrical and Mechanical)

 Weaving Spares
 Warping Spares (Expandable comb, creel repairs)
 Picanol loom Spares (Electrical and Mechanical)
 Overhead Travelling Cleaners

 Airconditioning (Repairs of motors and dampers)

 Air compressor (Installation of air dryer in compressed air line, air meters)

1/6/2021 No 41
INVESTMENTS
Item No Department Description Impact

1 Carding Card wire replacement Improved yarn

quality
2 Drawframe Autolevellers Improved yarn
quality
3 Rotor Spinning Assorted Spares 500 rotors restart
4 Weaving Assorted spares 8 looms restart,
preparation and increased loom
weaving speeds, improved
fabric quality
5 Utilities Airconditioning Improved fabric
quality
6 Utilities Compressed air drying Less water vapour in
machines, improved
quality, machine life
7 Utilities Air meters Improved air
monitoring

1/6/2021 No 42
4. Kombolcha Textiles,
Kombolcha

1/6/2021 No 43
EXECUTIVE SUMMARY
 Kombolcha Textile Share Company (KTSC) is a composite textile mill situated in the town of Kombolcha, N.East Ethiopia
 Installed spinning capacity - 13200 ring spindles and 528 rotors
 Installed looms - 113 rapier looms
 Processing production- 20000m per day.

 Project involves
 Development of an upgrading roadmap based on a baseline study and needs assessment
 Implementation of the upgrading interventions to international best practice
 Managerial and technical training,
 Creation of linkages between the companies and research and educational institutions
 Creation of linkages with potential international buyers

 Identified issues include

• Poor quality lint,
• inadequate machine utilization,
• inadequate production and quality control processes
 Interventions include
 Standardization of process
 Capacity building on works

1/6/2021 No 44
OBJECTIVES

►Undertaking a Baseline Study at KTSC

►Undertaking a Needs assessment at KTSC
►Devevelopment of Roadmap for interventions
►Hand holding KTSC in production of Export quality fabrics
►Conducting of training at KTSC
►Linking of KTSC with external buyers

1/6/2021 No 45
INSTALLED MACHINERY
►Blowroom Trutszchler
►Carding
 Trutszchler TC-07, TC-11 Models – 4 Nos
 Marzoli C601N Model - 7 Nos
►Drawing
 Rieter SB-D-40, 50; RSB-D-50 Models – 6 Nos
 Trutszchler TD-01, TD-02 Models – 2 Nos
►Speedframe
Zinser 668 Model – 3 Nos
►Ringframe
Zinser 351 Model - 11 Ringframes (13200 spindles)

►Winding
 Autoconer 238 4 Nos
 Autoconer 338- 2 Nos
►Rotor spinning S-360 – 2 Nos (528 Rotors)

1/6/2021 No 46
Weaving
Karl
1 In operation
1 Warping Meyer
Elitex 2206 2 One was not in operation
Karl
1 In operation
Meyer
2 Sizing Rotal 82-89 1 Not in operation
Rotal -
1 Operational
sucker
Textima-
Textima 2 In working condition
3 Drawing-In 220
Ficher FHCC-C 2 In working condition
Optimax-
Picanol 50 In working condition
8-R
Sulzer G6300 17 In working condition
4 Looms
Sulzer G6300F 21 In working condition
Dornier HTV4-E 10 Operational
Saurer G2 15 Operational

1/6/2021 No 47
Processing
Singeing &
1 Omez 1929 1 Operational
Desizing
2 Scouring Textima 6004 1 Operational
3 Bleaching Goller 9934 1 Operational
4 Dyeing Benninger 2400 1 Operational
5 Washing Goller 9936 1 Operational
6 Drying Goller 9936 1 Operational
7 Stenter Monfort 45T77507 1 Operational
Operational
8 Calendar 10234 1
Comerioercole

9 Mercerizing Textima 6241 1 Operational

10 Printing Reggiani 240/918 1 Operational
11 Inspection Simat VM--3 5 Operational

1/6/2021 No 48
Garments
1 Protex Ty 1130 16 Operational
2 Mareew ML 550 10 Operational
Sewing Machines
3 Juki D.DL 5550 13 Operational
4 Juki New LH 3568 A 5 Operational
5 Juki LH-3128-7 5 Operational
DDR- Operational
6 Textima 15
13345310
7 Pegasus Ls2-01 spec.4 8 Operational
8 Hanma Hm-757F-516 3 Operational
9 Juki mo-67145 5 Operational
10 Protex TY-373 1 Operational
Operational
11 Buttonhole Sewing JH 26009 1

12 Protex TY-1130M 15 Operational

13 Hanama HM-757-516 5 Operational
14 Cloth Spreader Modeffic 1 Operational
15 Cloth Spreader Modeffic 1 Operational

1/6/2021 No 49
DEPARTMENT WISE ASSESSMENT

1/6/2021 No 50
BLOWROOM OBSERVATIONS AND ASSESSMENT

►Bale color variation

►High trash content in lint

►Bale color variation

High lint trash content Trashy lint

1/6/2021 No 51
CARDING OBSERVATIONS AND ASSESSMENT

►High sliver trash content

►Adequate card wire management system

High sliver trash Idle cards (2)

1/6/2021 No 52
DRAWFRAME

Fluff removal
►Poor top roller maintenance
►Poor fluff removal

 Poor roller maintenance

Damaged drawframe rollers

1/6/2021 No 53
ROVING FRAME

►Poor roller management

►Inadequate quality checks

Top roller nicks Worn clearers

1/6/2021 No 54
SPINNING AND AUTOCONER

►Management of colour coding

►Trash present in yarn
►High imperfections
►High pneumafil waste
►Improper yarn clearer settings
►Idle rotors
►Poor working of essential rotor spinning mechanisms
►Poor spinning atmospheric condition

1/6/2021 No 55
RING SPINNING AND AUTOCONER

Improper balloon control ring

setting
Ring bobbin mixed colors Trashy yarn

Roving bobbin color mixup Mixed color cones High nep content

1/6/2021 No 56
WARPING AND SIZING

►Poor yarn inspection

►Poor creel fluff removal
►Poor beam management systems
►High warp breakage rates
►Low warping efficiency
►Low size pick up

1/6/2021 No 57
WARPING AND SIZING
► No tension discs,

► poor fluff removal

Warp contamination
Improper cone storage

Improper lighting Poor yarn homogenity Unequal beam lengths

1/6/2021 No 58
WEAVING

►Unequal beam length knotting

►Defective weft feeders
►High and weft breaks
►Poor process supervision

Defective weft feeders

Poor supervision Yarn contamination

1/6/2021 No 59
PROCESSING AND OTHERS

►Adequate boiler capacity

►No steam consumption records/meters
►Challenge in dyeing medium-dark shades
►Marketing strategy under review
►ISO 14001 and ISO 9001 certified

1/6/2021 No 60
INITIAL INTERVENTION

►Capacity building-
Process Management
Maintenance management
Time management

►Process Parameters
Atmospheric control
Settings optimization
Waste reduction
Efficiency optimization

Short term Experts- Zinser Ringframe Machine levelling and setting

Scharfhorst Autoconer -Machine setting

1/6/2021 No 61
PROPOSED INTERVENTION ROADMAP
S. N. Activity Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
1 Planning and meeting with Client
2 Implementation - Mixing, Blow Room & Carding
3 Training on Mixing & Blow Room
4 Training on Carding
5 Retraining on Mixing, Blow Room & Carding
6 Implementation - Draw Frame & Speed Frame
7 Training of Draw Frame & Speed Frame
8 Implementation - Ring frame, Autoconer and Rotor
9 Training on Ring Frame & Rotor
10 Training on Autoconer
11 Retraining on Ring Frame, Autoconers and Rotor
12 Training on Quality & Maintenance - Spinning
13 Overall training of Management on Process Monitoring
14 Training on Warping & Sizing
15 Training on Weaving - Loom shed
16 Retraining on Warping, Sizing and loomshed
17 Training on Quality & Maintenance - Weaving
18 Training on fabric pre-processing
19 Training on fabric dyeing
20 Training on fabric printing
21 Training on fabric finishing
22 Training on Quality and maintenance- Processing
23 Retraining on Processing
24 Marketing Strategy development
25 Reports

1/6/2021 No 62
INVESTMENTS

 Spinning spares
 Drawing (Autolevellers, top cots)
 Roving frame (top rollers and mesh aprons replacement)
 Rotor Spinning (Assorted)

 Weaving Spares
 Warping Spares (Creel repairs)
 Loom spares (Assorted)

 Airconditioning (Repairs of control unit)

 Lighting

Short term Experts- Zinser Ringframe machine levelling and setting

Scharfhorst Autoconer -machine setting

1/6/2021 No 63
INVESTMENT

Item No Dept Description Benefit

1 Blowroom Foreign particle camera Reduced stoppages, Improved quality
2 Carding Autolevellers Improved sliver and yarn quality
3 Drawframes Top cots Improved sliver quality
Autolevellers Improved quality
Speed control sensors Improved quality
4 Speed frames Top Cots Improved roving and yarn quality
Mesh aprons Improved roving and yarn quality
5 Rotor Spinning Assorted spares 50 extra rotors in operation
6 Warping Creel fans and Improved quality, productivity
tensioners
7 Weaving Weft feeders Improved quality
8 Utilities Air-conditioning Better productivity and yarn quality
Lighting Improved operator efficiency

1/6/2021 No 64
5. Abay Garments,
Gondor

1/6/2021 No 65
CONTENT

1. Background
2. Objective
3. Product Mix
4. Key Performance Indicators and Analysis
a. Sewing Productivity
b. Man to Machine Ratio (MMR)
c. Quality (Defects & Rejections)
d. Cut to Ship
e. Absenteeism & Attrition
5. Summary
6. Current Challenges as per Factory Visit
7. Findings

1/6/2021 No 66
BACKGROUND

►Abay garment factory was established in the year 2018 and is a part of Abay Industrial Development
Share company. It is situated in Amhara Regional State, Central Gondar, Azezo Industrial Village,
Gondar, Ethiopia over a total plot area of 40,000 square meters.
►The factory has 3(three) sheds totaling to an area of 16,853.18 square meters.
►There are a total of 897 sewing machines with a total installed capacity of 26,838 pcs/day with 48
lines in total including both Knits and Woven products like T-Shirt, Polo, Leggings, Shirts, Khaki pants
and Denim.
►The factory has invested in state-of-art washing, embroidery and screen-printing facilities. Due the
pandemic, these machines couldn’t be installed and commissioned.

1/6/2021 No 67
BACKGROUND

►Currently, the factory has a total of 660 employees, out of which 510 are sewing operators.
►The current team from Production, Merchandising and Marketing is fresh and inexperienced,
especially for catering to the export market. They have to be handheld by extensive on-job training.
►The financial status of the factory is not stable, especially to take care of the operational expenses as
the company did not have continuous orders since the past few months.
►They are surviving on some subcontracted orders which has miniscule margins as compared to the
large overheads incurred on a monthly basis. The factory has reserves for prospective merchandising
and marketing expenses which is a positive element.
►As required in deliverable 4, the company has been connected to two major buyers, H&M and Dollar
Global.

1/6/2021 No 68
OBJECTIVE

The main objective of this assignment would be “Gap Analysis of the Factory”

 The benchmarking would be done based on below aspects:

 Productivity Benchmarking (Efficiency)

 Factory Manpower Benchmarking (MMR)

 Quality (Defects & Rejections)

 Cut to Ship Benchmarking

1/6/2021 No 69
CUTTING FLOOR

1/6/2021 No 70
SEWING FLOOR

1/6/2021 No 71
UNINSTALLED MACHINES

1/6/2021 No 72
PRODUCT MIX

Month T-Shirt Polo Shirt Facemask Others Product Mix (May'20 to October'20)
2.330; 2% 1.130; 1%
May-20 3,804 11,779 580 45

Jun-20 18,100 4,257 1,750 150

20.485;
19%
Jul-20 9,958 3,268 935

Aug-20 29,144 450

Sep-20 4,292 731

82.457;
Oct-20 17,159 78%

Total 82,457 20,485 2,330 1,130

Product Mix 77% 19% 2% 1% T-Shirt Polo Shirt Facemask Others

1/6/2021 No 73
SUMMARY

Key Performance Indicators

S. No. UOM Current Level Industry Standard
(KPI)

1 Sewing Efficiency % 16% 55%

2 Man to Machine Ratio (MMR) Ratio 1.92 1.7

3 Quality (Defects) % 5.6% (?) 5%

4 Absenteeism/ Attrition % 7.45% 5%/ 6%

5 Cut to Ship % NA 98%

6 Cost per SAM ETB/ USD 5.89/ 0.15 1.5/ 0.04

1/6/2021 No 79
CURRENT CHALLENGES AS PER FACTORY VISIT

1. High defects and rejections

2. Skill gap among workers and staffs

3. Lack of systems/ software, manual reporting system

4. Lack of basic amenities like operator cafeteria, computers

5. Employees turn over & absenteeism

6. Gap of mutual understanding and co-operation among staffs

7. Performance monitoring for workers and JD & KPI for staffs is missing

8. Export order challenges

1/6/2021 No 80
FINDINGS & SUGGESTIONS

►There is scope of productivity and quality improvement

►Lack of system, SOP, reports, JDs, training (staffs & workers both) across all sections (including marketing & merchandising)

►Lack of technology, infrastructure, storage & handling equipment, software in HR and Finance

►Lack of maintenance system, existing machines not working (e.g., Gerber automatic spreader & cutter, pattern making software)
overall 203 machines are un-commissioned due to Covid impact

►Out of 897 sewing machines, 37 (4%) of them are not working, due to inadequate maintenance manpower

►Compliance study to be done for exports orders (if required)

►STE requirement: Senior maintenance expert

1/6/2021 No 81
 MONTHS January, 21 February, 21 March, 21
WEEKS 1 2 3 4 5 6 7 8 9 10 11

IMPLEMENTATION

10-Mar-2021
11-Mar-2021

11-Mar-2021

12-Mar-2021

13-Mar-2021

14-Mar-2021
15-Mar-2021
16-Mar-2021

17-Mar-2021

18-Mar-2021
10-Jan-2021
11-Jan-2021
12-Jan-2021
13-Jan-2021
14-Jan-2021
15-Jan-2021
16-Jan-2021
17-Jan-2021
18-Jan-2021
19-Jan-2021
20-Jan-2021
21-Jan-2021
22-Jan-2021
23-Jan-2021
24-Jan-2021
25-Jan-2021
26-Jan-2021
27-Jan-2021
28-Jan-2021
29-Jan-2021
30-Jan-2021
31-Jan-2021

10-Feb-2021
11-Feb-2021
12-Feb-2021
13-Feb-2021
14-Feb-2021
15-Feb-2021
16-Feb-2021
17-Feb-2021
18-Feb-2021
19-Feb-2021
20-Feb-2021
21-Feb-2021
22-Feb-2021
23-Feb-2021
24-Feb-2021
25-Feb-2021
26-Feb-2021
27-Feb-2021
28-Feb-2021
1-Mar-2021
2-Mar-2021
3-Mar-2021
4-Mar-2021
5-Mar-2021
6-Mar-2021
7-Mar-2021
8-Mar-2021

9-Mar-2021
8-Jan-2021
9-Jan-2021

1-Feb-2021
2-Feb-2021
3-Feb-2021
4-Feb-2021
5-Feb-2021
6-Feb-2021
7-Feb-2021
8-Feb-2021
9-Feb-2021
Activities

TIMELINE TRAINING SESSION

ENABLERS

fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri

Industrial Engineers
1)Introduction to IE concepts

a)Use of Stop Watches

Session 1

Session 2

Session 3
b)Method Study and Time Study
c)Understanding of SAM, SMV, Efficiency and Performance
d)Understanding of Capacity Study and Capacity Utilization

TEST
2) Understanding of Planning Tools

Merchants & Industrial Engineers

a)Order Lead Times
b)Understanding of Complete Order Cycle

 Training of middle
c)Understanding of T & A

Session 4

Session 5
d)Importance of Order Initialization
e)Understanding the Process Flow in Sampling Room
f)Various Stages of Sampling

managerial staff: 11 Jan, g)Material Receipts (Stores)

h)Importance of Planned Dates/Cut Off Dates

TEST

21 to 8 Mar, 21
3)QUALITY:

Quality Team & Industrial

a)Introduction of gauging of repair and rejection percentage in Cutting, Sewing,
Finishing and Packing

Engineers
 Training of trainers: 09
b)Understanding the concept of DHU

Session 6

Session 7
c)Knowledge of AQL
d)Understanding of Quality SOP
e)Understanding the Style Start up, Quality SOP

Mar, 21 to 8 April, 21 f)MIS for Quality

4)Code Of Conduct
TEST

HR Department
 Implementation: 12 Apr, 21

& Industrial
Engineers
a) Understanding the Concept of Absenteeism and Labor Turnover

Session 8
b)Principle of 6S
c)Attributes of Social Compliance
INSTALLATION OF SOP & RELEVANT TOOLS

to 11 July, 21 On time deilvary/ Material on time

Lead Time related data collection
Evaluating Information requirement in sampling department.
Streamlining Information sharing between Merchandising,Sampling & Production
departments
Sampling Data Collection thorugh MIS

Cutting Department
Work Content Analysis in Cutting department

Standardizing SAM for cutting processes like

spreading,cutting,Numbering,Bundling etc.

Target Setting, SAM validation & Production Data Capture by MIS

Efficiency evaluation against target set

Sewing Department
Time Study of running Style, Style Analysis at sampling stage

Core Team
Define Standard Allowed Minutes (SAM) for sewing operations
Building Data base of Operations with SAM
Operation Bulletin, Batch Layout Preparation
Production Data Capture
Efficiency calculation and monitoring

Finishing Department
Analysis of work content in Finishing processes
Allocate SAM value for Finshing Processes
Database development of SAM for Finishing Operations
Production Data Collection for analysis
Efficiency calculation and monitoring

Quality Department
Installation of MIS for data collection and analysis of rejection at initial/inline/final
inspection stage.
Data collection to calculate % DHU and rework percentage.

Data Collection to calculate the Cost of quality (COQ).

KPI and Baseline measures

Define the KPIs
Design single page excel based compilation of MIS Core Team

Analyze data generated from MIS

Finalizing Baseline
Final Presentation to Stake Holders

1/6/2021 No 82
6. Telaje Garments,
Kombolcha

1/6/2021 No 83
CONTENT

1. Background
2. Objective
3. Product Mix
4. Key Performance Indicators and Analysis
a. Sewing Productivity
b. Man to Machine Ratio (MMR)
c. Quality (Defects & Rejections)
d. Cut to Ship
e. Absenteeism & Attrition
5. Summary
6. Current Challenges as per Factory Visit
7. Findings

1/6/2021 No 84
BACKGROUND

►Telaje Garment Manufacturing and Sales PLC is a denim garment manufacturing company located at Kombolcha
town
►It started production in 2017 with a design production capacity of 4,600 pcs per day.
►The promoters of the factory are Tiret Corporate and Ambassel Trading PLC.

1/6/2021 No 85
OBJECTIVE

The main objective of this assignment would be “Gap Analysis of the Factory”

 The benchmarking would be done based on below aspects:

 Productivity Benchmarking (Efficiency)

 Factory Manpower Benchmarking (MMR)

 Quality (Defects & Rejections)

 Cut to Ship Benchmarking

1/6/2021 No 86
PRODUCT MIX

Production Production
Product Type U/M Percentage Mix
Capacity/Day Capacity/annum

Jeans Trouser Pcs 90% 4,140 1,242,000

Jeans Shirt Pcs 10% 460 138,000

Total 100% 4,600 1,380,000

1/6/2021 No 87
CUTTING FLOOR

1/6/2021 No 88
SEWING FLOOR

1/6/2021 No 89
WASHING FLOOR

1/6/2021 No 90
UNUTILIZED MACHINES

1/6/2021 No 91
SUMMARY

Key Performance Indicators

S. No. UOM Current Level Industry Standard
(KPI)

1 Sewing Efficiency % 23% 55%

2 Man to Machine Ratio (MMR) Ratio NA 1.7

3 Quality (Defects) % NA 5%

4 Absenteeism/ Attrition % NA 5%/ 6%

5 Cut to Ship % NA 98%

6 Cost per SAM ETB/ USD 5.24/ 0.15 1.5/ 0.04

1/6/2021 No 94
CURRENT CHALLENGES AS PER FACTORY VISIT

►Despite its large designed production capacity, Telaje Garment Manufacturing & Sales PLC had been underperforming (utilizing
only 5% of its capacity)
►It is unable to attract international buyers, running with shortage of working capital, and are in high amount of financial loss due
to different internal and external factors).
►Taking the data of last six months during the survey, the average factory efficiency is 23% and the sewing labor productivity is 4
pcs/shift/person.
►During the survey time, the factory was not operational since September, 20 due to some legal issues with the recently
terminated 227 workers (On September 23, 2020). It is hoped to be solved by the end of December 20.
►With 8 lines, the factory has a potential capacity of 675,754 jeans trouser per 6 months.
►The actual production of sewing line is only 30,817 pcs of jeans trouser which implies capacity utilization of 5%.
►The Cost per SAM was ETB 3.4 (June,20) , ETB 3.78 (July, 20), ETB 8.50 (Aug, 20), ETB 49.50 (Sep, 20) , which are too high as
to an international average of ETB 1.5

1/6/2021 No 95
FINDINGS & SUGGESTIONS

►They urgently need to invest in purchasing some very important assets like Boiler, water tank and Embroidery machine.
►The Tiret Corporate had requested the consultant to develop a turn around business Plan to revive the factory as a part of their
short-term revival strategy.
►After discussing with the shareholders and other stakeholders, the corporate finally approved a budget of ETB 10.5 Million.
►Involvement of the consultant right from the operator selection stage to the final operations.
►STE requirement:
 Washing Expert
 Master Trainer (Sewing)
 Sewing Maintenance

1/6/2021 No 96
 MONTHS March, 21 April, 21 May, 21
WEEKS 1 2 3 4 5 6 7 8 9 10 11

10-May-2020
11-May-2020
12-May-2020
13-May-2020
14-May-2020
15-May-2020
16-May-2020
17-May-2020
18-May-2020
19-May-2020
20-May-2020

21-May-2020
22-May-2020
23-May-2020
24-May-2020
25-May-2020
26-May-2020
27-May-2020
28-May-2020
29-May-2020
30-May-2020
31-May-2020
22-Mar-2020
23-Mar-2020
24-Mar-2020
25-Mar-2020
26-Mar-2020
27-Mar-2020
28-Mar-2020
29-Mar-2020
30-Mar-2020
31-Mar-2020

10-Apr-2020
11-Apr-2020
12-Apr-2020
13-Apr-2020
14-Apr-2020
15-Apr-2020
16-Apr-2020
17-Apr-2020
18-Apr-2020
19-Apr-2020
20-Apr-2020
21-Apr-2020
22-Apr-2020
23-Apr-2020
24-Apr-2020
25-Apr-2020
26-Apr-2020
27-Apr-2020
28-Apr-2020
29-Apr-2020
30-Apr-2020
1-May-2020
2-May-2020
3-May-2020
4-May-2020
5-May-2020
6-May-2020
7-May-2020
8-May-2020
9-May-2020
1-Apr-2020
2-Apr-2020
3-Apr-2020
4-Apr-2020
5-Apr-2020
6-Apr-2020
7-Apr-2020
8-Apr-2020
9-Apr-2020
INTERVENTION TIMELINE Activities

ENABLERS

montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun montue wedthu fri sat sun mon
TRAINING SESSION

Industrial Engineers
1)Introduction to IE concepts

a)Use of Stop Watches

Session 1

Session 2

Session 3
b)Method Study and Time Study
c)Understanding of SAM, SMV, Efficiency and Performance
d)Understanding of Capacity Study and Capacity Utilization

TEST

 Training of middle
2) Understanding of Planning Tools

Merchants & Industrial Engineers

a)Order Lead Times
b)Understanding of Complete Order Cycle
c)Understanding of T & A

managerial staff: 25 Mar,

Session 4

Session 5
d)Importance of Order Initialization
e)Understanding the Process Flow in Sampling Room
f)Various Stages of Sampling

21 to 31 May, 21 g)Material Receipts (Stores)

h)Importance of Planned Dates/Cut Off Dates

TEST

 Training of trainers: 09 3)QUALITY:

Quality Team & Industrial

a)Introduction of gauging of repair and rejection percentage in Cutting, Sewing,
Finishing and Packing

Engineers
b)Understanding the concept of DHU

Apr, 21 to 8 May, 21

Session 6

Session 7
c)Knowledge of AQL
d)Understanding of Quality SOP
e)Understanding the Style Start up, Quality SOP

 Implementation: 12 June, f)MIS for Quality

4)Code Of Conduct
TEST

HR Department
& Industrial
Engineers
21 to 11 Aug, 21 a) Understanding the Concept of Absenteeism and Labor Turnover

Session 8
b)Principle of 6S
c)Attributes of Social Compliance
INSTALLATION OF SOP & RELEVANT TOOLS
On time deilvary/ Material on time
Lead Time related data collection
Evaluating Information requirement in sampling department.
Streamlining Information sharing between Merchandising,Sampling & Production
departments
Sampling Data Collection thorugh MIS

Cutting Department
Work Content Analysis in Cutting department

Standardizing SAM for cutting processes like

spreading,cutting,Numbering,Bundling etc.

Target Setting, SAM validation & Production Data Capture by MIS

Efficiency evaluation against target set

Sewing Department
Time Study of running Style, Style Analysis at sampling stage

Core Team
Define Standard Allowed Minutes (SAM) for sewing operations
Building Data base of Operations with SAM
Operation Bulletin, Batch Layout Preparation
Production Data Capture
Efficiency calculation and monitoring

Finishing Department
Analysis of work content in Finishing processes
Allocate SAM value for Finshing Processes
Database development of SAM for Finishing Operations
Production Data Collection for analysis
Efficiency calculation and monitoring

Quality Department
Installation of MIS for data collection and analysis of rejection at initial/inline/final
inspection stage.
Data collection to calculate % DHU and rework percentage.

Data Collection to calculate the Cost of quality (COQ).

KPI and Baseline measures

Define the KPIs

Core Team
Design single page excel based compilation of MIS
Analyze data generated from MIS
Finalizing Baseline
Final Presentation to Stake Holders

1/6/2021 No 97
Thank you

1/6/2021 No 98