BSin GS

Benchmarking Study
In
Garment Sector
September 2007
NATIONAL PRODUCTIVITY ORGANIZATION (NPO)

Ministry of Industries, Production & Special Initiatives
Government of Pakistan
© 2007 by National Productivity Organization
Ministry of Industries, Production & Special Initiatives
Government of Pakistan
All rights reserved
No part of the work covered by the copy rights here on may be reproduced or used
any form or by any means – graphic, electronic or mechanical including photocopy,
recording, taping or information storage and retrieval system – without written
permission from National Productivity Organization.
INTERNATIONAL EXPERTS COMMENTS
“We have dedicated a considerable amount of time to the analytical appreciation of

your report and found it Articulate, Competent, Well Structured and Open Minded.”
Eugene Chinal
Chinal Management Services
United Kingdom
www.chinal.co.uk
“We have one simple comment to make about your report - FANTASTIC. It is
thorough, precise, and far reaching. I was extremely impressed with the quality of
your report. You are extremely professional.”
David T Parkes.
Dyehouse Solution International
United Kingdom
www.dyehouse.com
“The work you have completed is very comprehensive and you are to be
complimented on the very thorough and detailed findings, conclusions and
recommendations listed from page 63 onwards. Your recommendations are similar
to Gherzi's experience in working with some Pakistan companies and with
many companies in the competing countries in Asia and elsewhere in the world.
NPO's identified issues facing the Pakistan companies are similar to the issues facing
companies in the competing countries but with a significant difference. You speak
of management problems and identify the need for stronger middle management to
be realized through improved training. You are, of course correct.
Gherzi would be pleased to work with NPO in helping companies move forward. NPO
is in a position to assist companies to take the necessary steps; we hope so
and should be pleased to work with you to help the industry progress.”
Keith Stuart-Smith
Gherzi’s International
Switzerland
www.gherzi.com
CONTENTS
1. Acknowledgement ………….…………………………….………………. 1
2. Introduction …………..……………………………………………. 2
3. Overview and Background of the Study …………...……………. 3
3.1 Textile Overview (Asia & Worldwide comparisons) 3
3.2 Background of the study …………………………….….. 7
3.3 Typical causes of high Labor Cost in Pakistan ….. 8
3.4 Labour Costs & Symptoms of Low Productivity in Asia 10
4. Objectives & Scope of the study ………………………….……. 12
5. Benchmarking Analysis ……………………………………….….. 13
5.1 Benchmarking Parameters ……………………………….. 14
5.2 Benchmark Rating ……………………………………..……. 15
5.3 Quartile of Benchmarking ……………………………….. 16
5.4 Characteristics of Quartile ……………………………….. 17
5.5 Benchmarking Scores …………….……….…….….. 20
5.6 Benchmarking across factories ……………….…… 24
5.7 General Observations in Sewing & Maintenance 29
5.8 General Observations in Dyeing/Finishing, Knitting & Laundry 35
5.9 Pictorial Snapshot ……………………………….
36
5.9.1 Poor Practices……………………… 36
5.9.2 Good Practices…………………….. 48
5.10 SWOT Analysis ……………………………………….….. 50
6. Findings, Recommendations & Conclusion ……………………. 54
6.1 Good Practices/Recommendations for Improvement 56
6.2 Recommended Implementation Plan for Quality & Process
Improvement and Cost Reduction ……………………. 63
6.3 Facilitation and Support by NPO ……………………. 73
6.4 Conclusion ……………………………….…..…..….. 75
7. Benefits of Improved Productivity ………………………….….... 76
8. Abbreviations ……………………………………………..……….. 77
9. Annexure ………………………………………………………. 78
a) Detailed Data Information Reports
 Sewing, Industrial Engineering & Maintenance
 Dyeing/Finishing, Knitting & Laundry

b) International Benchmarks
DISCLAIMER:
This report do not necessarily reflect the views of National Productivity
Organization as it is based on the data collected / snapshot taken during the
months of February – March 2007 and the information provided by the company
/ section representatives.
There may be variation in the data if collected in different time period.
Benchmarking Study in the
Garment Sector
ACKNOWLEDGEMENT
The Benchmarking Study in the Garment Sector was undertaken by the National
Productivity Organization (NPO), Ministry of Industries, Production & Special
Initiative, Government of Pakistan in close cooperation with the selected
beneficiaries and NPO experts.
The NPO would like to express its sincerest gratitude for their cooperation,
assistance and contribution in successfully executing this study. NPO would like to
extend its special gratitude to the NPO technical experts who assisted and provided
guidance in completing this assignment. However, the great appreciation to the
whole team of NPO comprised of
Benchmarking Advisors: Mr. Hasan Haider

Syed Salman Masood
NPO Technical Experts: Mr. Asela Gamage
Mr. Muhammad Kashif Afzal
Mr. Ali Hur
Best Practice Officers: Mr. Sajeel Siddique
Mr. Aftab Khan Masood
Mr. Muhammad Awais Ansari
Mr. Muhammad Ubaid Usmani
Mr. Abdul Qayoom
Project Facilitator: Mr. Anwar-ul-Haq Anwar
And last but not the least, the NPO team is indebted to the Chief of National
Productivity Organization, Mr. Tariq Bajwa, whose personal interest, commitment
and interminable support and able guidance encouraged the team to complete this
assignment despite of inherent hindrances.
The contributions and incessant efforts of all the stakeholders are priceless.
Copyright ® National Productivity Organization Page 1 of 78

Report on Benchmarking in the
Garment Sector
INTRODUCTION
This is the Final Report on the Benchmarking Study of the leading garment
industries of Pakistan.
Benchmarking, a new concept of knowledge sharing, refers to a continuous learning

process, which encourages improving one’s own performance by learning from best
practices of other enterprises in the similar industry. In Pakistan, National
Productivity Organization has been the pioneer to introduce this concept.
Assigned and agreed Technical fields/functions were Dyeing/Finishing, Knitting,

Sewing, Laundering, Industrial Engineering, Printing and Maintenance. The field
surveys (through questionnaires, physical data collection & interviews) under this
study were conducted by NPO Technical Experts along with Best Practice Officers
(BPOs) from February-March 2007.
Subsequent to the field surveys, research and analysis was undertaken at NPO
Secretariat, Islamabad under the assistance and guidance of NPO Experts. The final
report was prepared by the Benchmarking Division on the basis of the data and
benchmarking scores provided by the other team members. The Project Facilitator
provided all the facilitation and coordination to perform the work smoothly.

Garment Sector
TEXTILE INDUSTRY IN ASIA

(Trade Overview: Asian Supplier Focus)
Demand for outerwear in the market will continue to increase slightly in the coming
years. The number of garments purchased per head of the population will continue
to rise, but prices will not follow the growth rate.
Imports from developing countries have increased considerably in volume but

against much lower prices.
The comparative data below shows some estimates of the size and scope of the
apparel markets of eight of the major apparel-producing countries in Asia. (As per
the Apparel Magazine – 2007)
Total Total Apparel

No. of
Employed in Apparel Sectors
Population Apparel
Country Apparel Exports of Total
million Factories
(Estimate (US$ Exports
(Estimate)
million) Billions) %
Bangladesh 137 4,000 1.90 5.7 75
China 1,317 38,970 4.60 61.0 10
India 1,027 60,000 4.00 6.0 8
Indonesia 224 2,368 0.377 4.3 6
Pakistan 167 5,000 0.70 2.7 22
Sri Lanka 19 830 0.35 2.6 46
Thailand 67 2,672 0.85 3.4 5
Vietnam 85 1,050 2.00 4.3 13
(*Note: Until recently India’s apparel industry was reserved by the government as a “small-
scale” sector.)

Garment Sector
WORLD TEXTILE & APPAREL TRADE

(Source: Werner International)
800
BN$
900
800
700 375
BN$
600
BN US$
500
400
300
200
100
0
9 8 0 98 2 98 4 98 6 98 8 99 0 99 2 99 4 99 6 99 8 00 0 00 2 00 4 00 6 00 8 01 0 01 2 01 4
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2

Garment Sector
Worldwide Textile & Clothing exports in 2004:

(300 billion USD) (Source: Werner International)
2007 projection: over 45%
80,000
26%
72320
70,000
60,000
50,000
40,000
30,000
6,8%
5% 5% 18470
20,000 4,1%
1377 13943
4% 9 11304
109
8536
10,000 3,1%
2519 3424
1665 1980 954
0
Chin Indi Pakista Centr Turke Polan Czec German Ital Franc Spai USA Braz
Asi Republi il

Garment Sector
USA Imports of Textile & Apparel (Jan 2005 VS Jan 2004)

(Source: Werner International)
The WTO “Effect”
VALUE in millions of dollars % CHANGE from January 2004
China 1150
29,38%
Mexico 524 -3,80%
India
327 10,52%
Canada
243 -2,84%
Indonesia
225
0,69%
Thailand
196 12,42%
South Korea
192 -12,62%
Pakistan
179 2,10%
Honduras 17,96%
174
Taiwan -11,96%
158
World $6,886 6,98%

Garment Sector
BACKGROUND OF THE STUDY
With the dawn of the new millennium, Pakistan like all developing countries is facing
a major challenge of a free and borderless, global market. Not only does it need to
improve the range and quality of its products, innovation and creativity are equally
imperative to consider becoming competitive in the world arena. Value addition
has therefore become the buzzword of economic policies and agendas.
Textile is one of the main industries in Pakistan. It is the most important sector of
the economy whereby it imparts 46% share in total manufacturing. It contributes
about 66% of the total exports and 38% in the value added production by
manufacturing sector. Garment manufacturing is one of the major and growing sub-
sector within the textile value chain. This sector consumes the major workforce of
the textile industry and contributes towards high growth rate in exports. Today
garment industry went through serious operational problems due to increased cost
of production, low productivity, poor quality, weak management and marketing skills
and hence facing serious threat of losing its share in the international markets.
Keeping in view the challenges of the free global trade regime, a number of large
textile groups have embarked upon modernization programs. Nevertheless, it has
been felt that the implementation of the replacement/modernization plans will not
automatically lead to manufacture of quality garment at competitive prices unless
standard levels of process conditions and machinery/labor performance are achieved
at each stage.
Considering the significant contribution of the textile sector to the exports, foreign
exchange earnings and the importance of enhancing productivity & quality, NPO
decided to undertake benchmarking study in the Garment Sector for its technical up-
gradation. The proposed survey on benchmarking was the first of its kind in
Pakistan.

Garment Sector
TYPICAL CAUSES OF HIGH LABOR COSTS IN PAKISTAN
 Standard Minute value is erroneous
 Insufficient man & machine utilization
 Poor line balancing
 Inconvenient work environment and housekeeping
 Unskilled quality management
 Machines at low levels of efficiency
 Ratio of indirect-to-direct labor is too high
 Range of products with little added value
 Machine maintenance is low
 Weak work methods & process controls
 Training is extremely weak, especially at middle management

Garment Sector
LABOR COSTS IN THE GARMENT INDUSTRY IN ASIA

(As per the USAID – Washington)
(US$ per Operator Hour)

Garment Sector
SYMPTOMS OF LOW PRODUCTIVITY IN ASIA
• Materials: Huge amounts of waste, excessive usage

Insufficient utilization, low quality
workmanship, materials not in most
convenient
• Productivity: Low performance, excessive lost time,

setting up time, poor work methods
Lack of incentives, weak skills, poor
organization, poor line balancing
• Machine capacity: Breakdowns, low output, high costs

Poor or lacking maintenance, long set up
times, low running speeds
• Work Methods: Excessive handling

Poor layout, poor location of departments,
handling of small units, poor handling
Equipment

Garment Sector
Benchmarking-Time to Export (Days)

South Asia Region - Compared to Global Best Countries - (Source: Business Database)

Garment Sector
OBJECTIVES OF THE STUDY
The exercise was designed around the following objectives:
 To prepare and guide selected garment exporters in becoming

competitive through benchmarking activities
 To develop in-depth understanding, and application of

benchmarking in selected companies;
 To identify and encourage the implementation of Best Practices so

as to minimize costs, improve efficiencies and productivity;
 To collect information on best practices/snapshot in seven fields

of the selected companies under the survey and to develop
comparative data amongst the industries.
SCOPE OF THE BENCHMARKING PROJECT
The seven benchmarking fields under this project are:
 Dyeing/ Finishing,
 Sewing,
 Knitting,
 Laundering,
 Printing,
 Industrial Engineering &
 Maintenance
(Note: latter 2 fields related to Sewing / Stitching function only)

Garment Sector
BENCHMARKING ANALYSIS
Benchmarking is the process of identifying and adapting outstanding practices from

organizations and companies around the world to assist an organization or company
in measuring and improving its performance.
The basis of a successful benchmarking exercise is a thorough understanding and

knowledge of best practices in the relevant areas. The metrics and quartile system
of classification used in this study were derived from years of research and
experience and a detailed understanding of best practices in the garment industries
(as per the Report on “Measuring Competitiveness and Labor Productivity in
Cambodia’s Garment Industry” by USAID – Nathan Associates, Associates for
International Resources and Development, Economic Institute of Cambodia, and
Werner International).
Factories with overall benchmarking scores in the top quartile are considered world-
class manufacturers, while those in the fourth quartile are considered poor
performers. Factories whose scores put them in the second and third quartiles are
medium-high performers and medium-low performers.
The information gathered from over two months period (February to March 2007)
Technical experts and BPOs have collected data from 10 out of 12 factories (one
company withdrew and the other has not confirmed any visit schedule) through
interviews, site visits, and questionnaires.
Technical experts and benchmarking advisors then analyzed the results, compared
to best practices, and benchmarked them to each other.
Findings of the benchmarking analysis are presented for the factories here.

Garment Sector
BENCHMARKING PARAMETERS
Following are the agreed benchmarking parameters from the respective technical
fields:
Sewing, Industrial Engineering & Maintenance
1. Production per machine per shift 11. Direct to indirect ratio

2. Marker efficiency 12. Safety & House keeping
3. Defects percentage 13. Preventive maintenance
4. B-Quality 14. Machine per technician
5. Production moving system 15. Spare part control
6. Standard minute value 16. Numbering system to
7. Through put time machine
8. On time delivery 17. Machine attachment control
9. Turnover
10. Absenteeism
Dyeing/Finishing, Knitting & Laundering
1. Productivity
2. Work Method
3. Technological Strength
4. Time Line
5. Maintenance
6. Quality
7. House Keeping
8. Workers Conditions
9. Presence of Analytical Culture
10. Training
11. Product Development

Garment Sector
BENCHMARK RATINGS
Benchmark value Quartile Description
10
1st Quartile World Class
9
8
2nd Quartile Medium-high Performance
7
5 3rd Quartile Medium-low Performance
2 4th Quartile No measure

Poor Performance

Garment Sector
QUARTILE OF BENCHMARKING
Sewing, Industrial Engineering &

Maintenance
4th Quartile
4th Quatile 1st Quartile
19% 6%
19%
2nd Quartile
35%
3rd Quartile
40%
Dyeing/Finishing, Laundary &

Knitting
4th Quartile 1st Quartile

15% 14%
3rd Quartile
29% 2nd Quartile
42%

Garment Sector
CHARACTERISTICS OF QUARTILES
Sewing & Industrial Engineering
Second Fourth
Description Top level Third level
level level
Production per
Efficient Good Average Inefficient
machine per shift
More than Less than Not
Marker efficiency 80-85%
85% 80% calculated
Less than More than
Defects percentage None 5-10%
5% 10%
Less than More than
B-Quality %age None 2.5-5%
2.5 5%
Not-
Standard minute value Routine Satisfactory No
Systematic
Very
Through put time Good Satisfactory High
efficient
On time delivery 100% < 95% < 90% > 90%
Production moving Very Not

Good Inefficient
system efficient systematic
Less than More than
Turnover None 5-10%
5% 10%
Less than More than
Absenteeism None 5-10%
5% 10%
More than Not
Direct to indirect ratio 1:0.5 1:1
1:1 calculated
Safety & House
Excellent Good Satisfactory Poor
keeping
(Source: Introduction to Work Study, by Kanawaty, George, Published 1992 International

Labour Organization, Geneva)

Garment Sector
Machine Maintenance
Fourth
Description Top level Second level Third level
level
Preventive Not
Routine Corrective No
maintenance appropriate
Technician to More than
1:20 1:21 - 1:40 1:41 – 1:60
Machine ratio 1:60
Not
Spare part control Routine Corrective No
appropriate
Numbering system
Excellent Good Average No
to machines
Machine attachment Not
Routine Corrective No
control appropriate

Garment Sector
Dyeing/Finishing, Laundry & Knitting
Second
Description First Level Third Level Forth Level
Level
More than 80
Productivity 60%-80% 40%-60% Below 40%
%
Non
Work Method Very Efficient Good Satisfactory
Satisfactory
Technological Less than 5 Less than 10 Less than 15

Very Old
Strength year Year Year
Non
Time Line Routine Average None
Systematic
Labor Productivity Productive Average Corrective None
Maintenance Effective Preventive Corrective None
Quality Excellent In Process Satisfactory None
House Keeping Excellent Good Average None
Workers Untidy
Tidy Uniform No Uniform None
Conditions Uniform
Presence of
Excellent Productive None None
Analytical Culture
Not
Training Excellent Good None
Systematic
Product Not
Efficient Productive None
Development Systematic

Garment Sector
BENCHMARKING SCORES
Company Codes / Evaluation Rate

Sr.
Description
#
A B C E I J L AVG.
Production per
1. 7 8 7 8 6 7 8 7.29
machine
2. Marker efficiency 9 8 7 9 8 8 9 8.29
3. Defects percentage 1 2 - 4 7 5 3 3.67
4. B-Quality %age 3 1 - 2 5 3 2 2.67
Standard minute
5. 7 3 4 8 4 5 7 5.43
value
6. Through put time 7 4 7 7 6 5 6 6.00
7. On time delivery - - - - 3 3 6 4.00
Production moving
8. 7 5 5 8 6 5 8 6.29
system
9. Turnover 4 5 - 4 5 3 2 3.83
10. Absenteeism 5 6 - 3 7 7 2 5.00
Direct to indirect
11. 4 5 - 5 - 6 6 5.20
ratio
Safety &
12. 5 3 4 7 5 4 6 4.86
Housekeeping
TOTAL out of 120

59 50 34 65 62 61 65 62.53
points
(Note: The boxes with dash in the above matrix shows no verifiable data being
provided by the respective beneficiary)

Garment Sector
BENCHMARKING SCORES
Machine Maintenance

Sr.
Description
#
E F L AVG.
1. Preventive maintenance 5 8 8 7.00
2. Machine per technician 3 8 9 6.67
3. Spare part control 4 7 8 6.33
4. Numbering system to machine 9 7 7 7.67

5. Machine attachment control 6 7 6 6.33
TOTAL out of 50 points 27 37 38 34

Garment Sector
BENCHMARKING SCORES
Dyeing/Finishing & Laundry

Description
A B E F H I J K AVG.
Work Method 7 6 6 8 5 4 6 8 6.25
Technological
7 7 7 7 7 8 8 8 7.38
Strength
Time Line 6 5 7 9 3 2 5 7 5.50
Maintenance 6 3 4 9 3 3 6 9 5.38
Quality 8 5 7 9 5 2 6 9 6.38
House Keeping 8 5 5 8 5 6 5 7 5.86
Workers Conditions 8 4 6 8 4 4 4 8 6.12
Presence of
6 4 6 8 5 4 6 9 6.00
Analytical Culture
Training 8 5 6 9 5 5 4 9 6.38
Product
5 3 4 6 2 2 2 6 3.75
Development
TOTAL out of 100

69 47 65 89 49 40 59 88 63.25
points
(Note: The blank boxes in the above matrix shows no verifiable data being
provided by the respective beneficiary)

Garment Sector
BENCHMARKING SCORES
Knitting

Description
B K AVG.
Productivity 5 9 7.00
Work Method 5 9 7.00
Technological Strength 7 8 7.50
Time Line 3 8 5.50
Maintenance 7 9 8.00
Quality 6 9 7.50
House Keeping 3 8 5.50
Workers Conditions 3 9 6.00
Presence of Analytical Culture 3 8 5.50
Training 1 8 4.50
Product Development 3 8 5.50
TOTAL out of 100 points 46 93 69.50

Garment Sector
BENCHMARKING ACROSS FACTORIES
Sewing & IE
A comparison of
scores of 5
L companies that each
has scored in
J
Sewing & IE out of a
I total of 100
(considering sum of
E all the benchmarking
B parameters except
on-time delivery and
A direct to indirect
0 20 40 60 80 100 ratio).
Production per machine Marker Efficiency
Avg Avg
L L
J J
I I
F
F
E E
C
C
B
B
A
A
0 1 2 3 4 5 6 7 8 9 10
0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Defects Percentage B-Quality %age
Avg Avg
L L
J J
I I
F F
E E
C C
B B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Standard Minute Value Throughput time
Avg Avg
L L
J J
I I
F F
E E
C C
B B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Turnover Production moving system
Avg Avg
L L
J J
I I
F F
E E
C C
B B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Absenteeism Safety & Housekeeping
Avg Avg
L L
J J
I I
F F
E E
C C
B B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Direct to indirect ratio
Avg
L
J
I
F
E
C
B
A
0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Machine Maintenance
Machine Maintenance
A comparison of
scores that each
company has
L
scored in machine
maintenance out of
a total of 50
F
(considering sum
of all the
benchmarking
E
parameters).
0 10 20 30 40 50
Preventeive Maintenace Machine Attachm ent control
AVG. AVG.
L L
F F
E E
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Spare Part Control Num bering Sys tem to Machine
AVG. AVG.
L L
F F
E E
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Machine per Technician
AVG.
0 1 2 3 4 5 6 7 8 9 10

Garment Sector
General Operational Observations in

Sewing and Maintenance
 The beneficiaries B & L have efficient plant layout.

 The beneficiaries L & E have good work stations.
 In L, I & E flexible chairs are provided to operators for better
ergonomics.
 The beneficiary L is effectively utilizing the natural light which is a good
practice.
 The beneficiaries A & E are fully equipped with Garment Gerber
Technology (GGT) while L is partially equipped, in the cutting section.
 In beneficiaries C, J & L, sewing machines are not placed under the tube
light.
 Overall, E & L have relatively better working conditions.
 In company L, trolleys of different colours are used in different units or
sections for better traceability.
 The company E has relatively better housekeeping.
 Inoperative machines are not covered, in almost all factories.
 Very high %age of rework is observed in A & B.
 In company L, relatively better housekeeping and display of tools is
observed in the maintenance department.
 Most of the beneficiaries lack discipline in the production due to
subcontracted people.
 Poor housekeeping in most of the companies was observed.
 In general, too many workers in the QC actives; checking the checkers.
 Every organization is organized in the same way: a routine oiling,
greasing and cleaning is in place.

Garment Sector
Dyeing/Finishing & Laundry
Dyeing/Finishing & Laundary
AVG
K
J
I
H
F
E
B
A
0 10 20 30 40 50 60 70 80 90 100 110
A comparison of scores of 8 companies that each has scored in Dyeing/Finishing &

Laundary out of a total of 110 (considering the sum of all the benchmarking
parameters).

Garment Sector
Technological Strength Work Method
AV G AVG
K K
J J
I I
H H
F F
E E
B B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Maintenance Time Line
AVG
AVG
K
J J
I
H H
F
E E
B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Product Development Quality
AVG
K
J
J
I
H H
F
E E
B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Workers Conditions House Keeping
AVG AVG
K
J J
I
H H
F
E E
B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Presence of Analytical Culture Training
AVG AVG
K
J J
I
H H
F
E E
B
A A
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Productivity
AVG
K
J
I
H
F
E
B
A
0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Knitting
Knitting
AVG
0 20 40 60 80 100
A comparison of scores that each company has scored

in Knitting out of a total of 110 (considering the sum of
all the benchmarking parameters).
Work Method Time Line
AVG AVG
K K
B B
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10

Garment Sector
Technological Strength Maintenance
AVG AVG
K K
B B
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Quality Presence of Analytical Culture
AVG AVG
K K
B
B
0 1 2 3 4 5 6 7 8 9 10
0 1 2 3 4 5 6 7 8 9 10
Product Development
AVG
0 1 2 3 4 5 6 7 8 9 10

Garment Sector
General Operational Observations in

Dyeing/Finishing, Knitting & Laundry
 Companies A, K, E & F have good production control with Management

Information System.
 Age of the equipment is fairly high in I & J.
 In general, Quality Control System in the companies A, E, F & K was
relatively good.
 Almost all Companies (A, B, E, F, J and K) have HT technology, giving
possibilities to dye synthetic fibers and blends.
 Companies J & K have automated chemical dozing system in place
however others are operating on manual system.
 Companies B & I have low rate of automation.
 Almost all the sampling machines in company B are manual: very
difficult to obtain good correlation between sampling and bulk.
 In general, almost all the factories (A, B, E, F, J & K) have good
laboratory equipment.
 Contract system was observed in the Knitting department of company B,
as it is difficult to have good discipline with subcontracted people.
 No Waste Water Treatment Plant (WWTP) was found except three
companies (A, F & K).
 Correlation between lab and bulk is poor: It might take more than 5
attempts in dye-lab to match the correct shade in company J & E.
 Almost all the companies use branded dyes and chemicals.

Garment Sector
Pictorial Snapshot /Poor Practices
Finishing Hall & House Keeping Compliance Issues
Poor House Keeping Rework and Line Balancing
Line Balancing and House

Rework or Alteration
Keeping

Garment Sector
Line Balancing
Plant layout (Finishing)
Compliance Issues Machine Cleanliness
Plant layout (Cutting) Plant layout (Stitching)

Garment Sector
Housekeeping issue (Cutting) Housekeeping issue (Cutting)
Waiting Time Line Balancing
Rework
Rework

Garment Sector
Maintenance

Garment Sector
House Keeping (Cutting)
Compliance Issue Compliance Issue
Compliance Issue
Over stacking

Garment Sector
Operator and Light Utilization
Bad Ergonomics
Plant Layout
Garment Stacking (Finishing) No Pathways (Finishing)

Garment Sector
Finishing Hall Finishing Hall
Over crowded
Safety Issues
Lighting and housekeeping issues Poor Fabric Handling (Dyeing)

Garment Sector
Printing Designing
Stacking (Storage)
Uncovered machines in parking area

(Maintenance)
Mishandling - Fabric falling from Sewing machines are not covered

carriage
in machine yard.
Exposed
Area
Wrong Place for Batchers

WIP inventory (Stitching)

Garment Sector
Housekeeping issue
Flat Inspection tables (Finishing) (Storage)
Flat tables for QC (Stitching) Sitting Arrangement & Housekeeping

(Stitching)
Line balancing - Sewing operator Housekeeping (Stitching)

surrounded with garments
(Stitching)

Garment Sector
Bundling of cut panels (Cutting) WIP Inventory (Stitching)
Lighting placement issue (Stitching)

Housekeeping (Storage)
Lights not switched off during break

Waiting Time (Finishing)
(Stitching)

Garment Sector
Fabric Rolls on Floor (Storage) Housekeeping (Cutting)
Housekeeping (Cutting)
Over stacking
Manual Cutting
Housekeeping (Cutting)

Garment Sector
Storage in Passage
Waiting time & housekeeping
(Stitching)
Layout– Pathways obstructed (Stitching)
Line balancing issue (Stitching) Garment handling (Stitching)

Garment Sector
Pictorial Snapshot /Good Practices
Storage Bins for spare parts GGT for Spreading (Cutting)

(Maintenance)
Tool handling (Maintenance) Passage way Mark
Proper Lighting Progressive Hanger System

Garment Sector
Progressive Hanger System Drainage Line Covered &

Clean Floor (Dyeing)
Auto Feeding (Dyeing) Effective use of Lighting
Written Instructions Plant Cleanliness

Garment Sector
SWOT Analysis
Sewing, IE & Maintenance
Comp
Strengths (S) Weaknesses (W) Opportunities (O) Threats (T)
any
 Plant layout  Weak quality assurance  World renowned buyers  Manufacturing cost
 Organizational Chart process  Free market access  International
 Industrial Engineering  House keeping & safety  Utilization of modern competition
service  High rework equipment  Branding
 High production capacity  High labor cost  Huge volume of expert
 Good production system  Direct to indirect ratio  Possibility to increase
 Effective SOPs  Operator evaluation the productivity
 Production planning and  Inadequate space  Possibility to improve the
A control  Working condition quality
 Training procedure  Lost time report  The companies have the
 Large order  Crowded Floor base to reach the 1st
 Technology driven  Less competent middle Quartile
 Utilization of international management
experts knowledge
 Vertically integrated
 Plant layout  Industrial Engineering

 Organization chart service
 Standard direct to indirect  Production system
ratio  Modern system &
 Training procedure technology
 In-house raw material  Implementation of SOPs
availability  Poor line balancing
 High production capacity  Production planning &
 Turnover control
B  Staff with technical  Quality Assurance
knowledge process
 Available to guide the
decision
 Housekeeping and
safety procedure
 Maintenance
 High rework
 Working condition
 Skilled labor  Industrial Engineering
 Location of factory  Plant layout
 Team Working environment  SOPs implementation
 Raw material in-house  Technology
C  Poor working condition
 Training department
 Weak organizational
chart
 Plant layout]  Implementation of SOPs
 Line balance  Organizational chart
 High plant capacity  High absenteeism
 Name and fame in Global  High labor cost
market  High rework
 Modern system &  Direct to indirect ratio
Technology  Lighting condition
 Industrial Engineering
E service
 Talent of top management
 Utilization of international
expert knowledge
 Training department
 Branding

Garment Sector
Comp
Strengths (S) Weaknesses (W) Opportunities (O) Threats (T)
any
 High production capacity  Plant layout  Manufacturing cost
 Large order  Organization structure  World renowned buyers  International
 PPC software control  Technology  Free market access competition
I  Skilled labor  SOPs implementation  Utilization of modern  Branding
 Training department  Industrial Engineering equipment
department  Huge volume of expert
 Poor cutting condition  Possibility to increase
 Great potential staff  Industrial Engineering the productivity
 Not depending on limited department  Possibility to improve the
buyers  Available to guide the quality
 High plant capacity decisions  The company has the
 Good infrastructure  Direct to indirect ratio base to reach the 1st
 Talent of Top management out of rate Quartile
 Utilization of international  High labor cost
expert knowledge  High turnover and
J  Absenteeism
 High work in process
 Modern systems &
technology
 Plant layout
 Organization Chart
 Production planning &
control department.
 Plant layout  Available to guide the

 Organization structure decisions
 Name and fame in global  Direct to indirect ratio
market  High labor cost
 Not depending on limited  High turnover and
buyers  Absenteeism
 High plant capacity  High work in process
 Good infrastructure  SOPs implementation
 Talent of Top management  Training procedure
L  Industrial Engineering
service
 Combination of local and
foreign experts
 Modern systems &
technology
 Vertically integrated
 Staff with technical
knowledge

Garment Sector
Dyeing/Finishing, Laundry & Knitting
Company Strengths (S) Weaknesses (W) Opportunities (O) Threats (T)
 Technology  Housekeeping  The Company has the  Regional & International

 Lab base to reach the 1st Competition
 Product Development Quartile  Cost & Quality
 Preventive Maintenance Competitiveness
 High Production
Capacity
A  Testing Equipment
 Training
 Quality System
 MIS System
 Skilled Workers  Less Automation  Quality system can be

 Lab Assistance  Technology improved
 Preventive Maintenance  SPC can be implemented
 SPC & practiced to improve
B  Training the Machine Efficiency
 Lack of Staff with
Technical Knowledge
 Quality System  Machine Age  SPC implementation can

 Lab  Statistical Process improve the Productivity
 Machine Efficiency Control
 Testing Equipment  Management
 Process Difficult fabrics Information System
 Talent of Top
E Management
 Name & Fame in the
market Satisfied
Costumers
 R&D  Machine Age  The Company has the  International

 Lab Assistance base to reach the 1st Competition (specially
 SOPs Quartile China)
 Work Method  Cost & Quality
 Working Area Competitiveness
 Skilled Operator
 Quality of Goods
 Quality System
F  Testing Equipment
 Training
 Good Infrastructure
 Industrial Engineering
 Name & Fame in the
market
 Satisfied customers

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Company Strengths (S) Weaknesses (W) Opportunities (O) Threats (T)
 New Machines  Modern System &  Quality system can be  Regional & International
 Skilled Workers Technology improve Competition
 Lab  SPC can be implemented  Cost & Quality
 Automation & Practiced Competitiveness
 Preventive Maintenance
H  SPC
 Quality System
 Training
 Uneducated Labor
 Ineffective QMS
 New Machines  Lab  Utilization of new set-up

 R&D  Possibility to increase
 Training the Production
 SPC  Possibility to improve the
I  Chemical Storage Area Quality
 Uneducated Labor
 State of the art Laundry
Section (under
construction)
 Dosing System  Short Run(Order)  Possibility to increase

 Latest Machines  Machine Efficiency the productivity
 SPC  Preventive Maintenance  Possibility to improve the
J  Lab Facilities  Quality Department quality
 Testing Equipments  Power Fluctuation  Utilization of modern
equipment
 Chemical Dosing System  Industrial Engineering  The Company has the  International
 Work Method base to reach the 1st Competition (specially
 Quality System Quartile China)
 Lab Assistance  Cost & Quality
 R&D Competitiveness
 Working Area
 Well Defined SOPs
K  Preventive Maintenance
 Skilled Labour
 Goods Quality
 Training
 Not dependent on
limited buyer
 Good Infrastructure
Satisfied Customer

Garment Sector
FINDINGS
a. The level of technological and managerial sophistication varies widely

& they have significant potential for upgrading.
b. Do not have the necessary in-house expertise and resources to

implement the suggested changes.
c. Lack of work methods and thus have no formal standards against

which to evaluate operators; these poor standards impede quality
control and efforts to ensure product consistency.
d. Do not use standard values to evaluate the efficiency of production

operations.
e. Do not have a proper organization chart. This encourages overstaffing

of many positions.
f. Ratio of direct to indirect personnel is not within internationally

accepted ranges (1 to 0.5)
g. Proper standard times do not exist for various production operations.

There is a complete absence of attention to the issue of time lost by
workers.
h. Problems of insufficient space and poor layout exist. The layout can be
improved, thus reducing considerably the time spent on handling
materials.
i. Line balancing is poor, resulting in excessive waiting times on the line.
j. Lack of product specifications and therefore do not carry out proper

production planning.
k. Control of Work In Progress is not in to the minimum acceptable level.

Fabric consumption and waste are not controlled.
l. With regard to capital investments, machinery is generally in good

working condition, but maintenance is weak. The time spent on
repairs is not recorded.
m. Machines are operated inefficiently, equipment maintenance is often

insufficient due to Lack of investment in maintenance, plus ineffective
spare parts stock control, often leads to considerable lost production.
n. Training at both the operator and supervisor levels is unsatisfactory.
o. The recruitment procedure is not systematic.
p. Technical training is lacking at all personnel levels: senior managers,

middle managers, technicians, supervisors, sewing operators, cutting-
room personnel, and pressing, folding, and packing operators.

Garment Sector
q. Do not train their section and line supervisors are usually trusted and
experienced operators with little formal education. They have not
been trained to control their sections for achieve the desired
production quantities on time with right cost and best quality.
r. The quality of sewing and raw-material selection generally was viewed

as acceptable for the target markets; there is still not available
significant potential to increase quality levels.
s. The problem observed is a lack of disciplined systems and controls in

the production department, Executive managers are unaware of daily.
t. Management information systems are deficient, inappropriate and

inaccurate.
u. The range of products currently produced emphasizes basic

construction and design, with very little added value.

Garment Sector
GOOD PRACTICES/RECOMMENDATIONS
FOR IMPROVEMENT
The post-2005 era is witnessing major changes in the textile sector. Whilst in some
countries this particular sector is enjoying a boom, in others it is going through a
major decline. In order to stay ahead of the market, one must ensure required
products are offered faster, cheaper and at a better quality than anyone else in the
world. During the period 1990-2001 the growth in garment exports achieved by
Pakistan was only 110% as compared to 160%, 278% and 750% achieved by India,
China and Bangladesh respectively.
On global basis Pakistan's clothing exports are only 1.00% which is less than half of
that from India and about 16 times lower than that from China.
The readymade garments sector in Pakistan is seeing mixed results. Knitwear

garments sector has seen a decline, while denim jean sector continues to grow.
There are a number of hypotheses for this decline e.g. higher utility cost, competing
countries giving subsidies to their products and uneven playing fields in foreign
markets. However, all these hypotheses are related to factors outside the control of
the manufacturer/entrepreneur.
This study provides an insight to the internal factors that can improve the
competitiveness of Pakistan’s garment sector. We have categorized these factors as
Factor Driven, Efficiency Driven and Innovation Driven aspects keeping in view the
global competitiveness framework. These factors are discussed below to give an in
depth overview of the present situation and proposed the good practices /
recommendations accordingly.
FACTOR DRIVEN ASPECTS
1. Plant Layout
The efficiency of a factory highly depends on its plant layout. During this study, it
was observed that only a few factories have efficient plant layout, while majority of
the companies have inefficient plant layouts. In fact, the inefficient layout leads to
increased lead-time, throughput time, WIP etc. making the working conditions
undesirable and consequently increasing the cost (per minute). The plant layout
plays a vital role in the manufacturing cycle, therefore it should be given due
importance for better productivity.
In order to make the efficient plant layouts, a company has to analyze the process
flows, time frames, motion, bottlenecks, speedy/slow workers, passage ways, etc.
2. Lightening Conditions
The data analysis shows that there are very rare practices of natural light utilization.
Very few of the factories are utilizing the natural light effectively. To use the natural
light effectively is a good practice; it decrease the utility cost thus reducing
manufacturing cost. Therefore beneficiaries have to consider this aspect to become
energy competitive in terms of light utilization.
It was also observed that in many factories, the lightening conditions are not so

Garment Sector
good especially at the workstation of sewing operator and quality controller which
result in B-quality, rework and high defect percentage.
The positioning, height and intensity of tube light should be according to the
standards (especially for the operators). Energy savers and closed circuit technology
should be used in the offices. They should be designed to effectively utilize the
natural light and sensors may be placed to detect the human presence and direct
light management accordingly in order to conserve energy losses.
3. Working Environment
The hot, humid & dusty environment and bad housekeeping leads to unsatisfied
workers, increased unwanted movements and drop in concentration, resulting in low
productivity and quality. The renowned brands/customers are very critical and
conscious, and prefer the companies having good working conditions to place their
orders. The benchmarking study shows that only a few factories have relatively
better housekeeping and working conditions. Therefore, in order to attract the
famous buyers and compete the global markets, the garment companies should
have to invest and consult for improving the working conditions.
Suggested technique to improve the house keeping and working environment is to

implement the Japanese concept of 5-S Kaizen.
4. Workstation Layout
If operator feels better, works better. The study shows that only two of the
beneficiaries have good workstations layout i.e. they made the workstations
comfortable for their operators, while others are still ignoring this important aspect
of low/high productivity. The uncomfortable workstations cause pain, numbness, or
tingling in the shoulders, neck, back and hands, eventually affecting the productivity
of sewing machine operators. These symptoms are related to the job/workstation
e.g.
An uncomfortable work position: Sewing work forces you to hold your body in
one position for long periods. If it is an uncomfortable position, pain and injury can
result. Your position is determined by the “fit” of your chair and foot control, your
need to see the work, and your need to grasp or hold materials in place.
Repeated or forceful motions Reaching, stitching, pinching, pulling... hundreds
of times a day. Each motion can cause small injuries to muscles and joints.
Long work hours and few breaks mean less time for muscles and joint injuries
to heal.
Hard edges: If the edge of your chair, worktable or table legs press into your body
for long periods, it can damage nerves or other soft body parts.
We can achieve better efficiency and high productivity & quality by conducting
Ergonomic studies and consequently providing the good & efficient workstation to
operators:
Use adjustable chairs: Employers should get durable industrial chair that have
adjustable seat height, padded seats, swivel bases with five legs (not four) and
padded adjustable backrest.
Use foot supports: Foot supports are an important part of the seated workstation.
Employers may need a mechanic to adjust, install, or build up foot support in the
right position for each worker (height, forward/back and left/right).
Adjust your equipment to fit your body: Every operator should adjust their
equipment according to its body ergonomics for better productivity and also to
prevent injuries.

Garment Sector
Another suggestion is to use the Japanese concepts of Muri (unnatural) and Mura
(un-even) to improve the existing situation.
EFFICIENCY DRIVEN ASPECTS
5. Capacity Building
Only installing automation and the latest machinery hardware does not guarantee
productivity improvement, but training has its own importance for improvement
even with existing infrastructure. Therefore, the basic recommendation for
improving the overall performance of the garment industry is to implement training /
capacity building programmes (especially focusing the soft skills) for:
Management: Top managerial personnel should be trained both at company

premises and at the international business schools in administration, finance,
marketing and production.
Technical Management: Technical managers receive training almost exclusively
from textile institutes/colleges. In plant arrangements for training of technical
personnel are required in the modern scientific management control methods.
Supervision: In the vast majority of textile mills, supervisors receive no formal
training whatsoever. Arrangements for training of supervisors should be provided.
Workers: Formal training programmes for the training of workers inside the mills
are generally non-existent. Workers are accustomed to low quality and low
productivity in general. These habits can be changed only by training so that
workers develop the habit of obtaining guidance and assistance of qualified
professionals. Management usually invests on machinery, but the people who run
that machinery are the most important to be trained to make them understand
about the machinery: operation and routine maintenance. This would improve the
reliability and efficiency of the machine and operator as well.
The highest priority is to train middle management such as line supervisors and
industrial engineering personnel. As garment industry is a labor intensive industry
and labor wage directly impact the total cost of the business, therefore the middle
management have the greatest effect on the efficiency of the plant.
6. Performance Measurement
Performance measurement is evaluating how well organizations are managed and

the value they deliver for customers and other stakeholders. It is the process of
assessing progress toward achieving predetermined goals, including information on
the efficiency with which resources are transformed into goods and services
(outputs), the quality of those outputs (how well they are delivered to clients and
the extent to which clients are satisfied) and outcomes (the results of a program
activity compared to its intended purpose), and the effectiveness of operations in
terms of their specific contributions to program objectives.
The garment industry should adopt performance management system in their

organizations in order to measure and evaluate their performance and take
corrective measures accordingly.
An effective approach to performance management enables employees and teams to

understand the goals of the organization and to see how individual and team
outputs contribute to the achievement of organizational objectives and values. This

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approach identifies, or defines, the performance expectations for individuals and

teams that are inherent aspects of their employment.
Integrating people, planning and performance with organizational objectives

develops individual and organizational capability and leads to higher performance.
The performance appraisal process articulates the standards of work expected of
employees and the values and behaviours employees are expected to uphold in
meeting their job requirements, communicating and working with others.
Performance management leads to higher performance that is more closely directed

to the objectives and needs of the organization. Performance appraisal and feedback
assist employees to understand what work they do well and how they can improve
their performance.
Suggested techniques to utilize are climate survey, 360° evaluation, productivity

diagnosis, etc.
7. Industrial Engineering Department
Industrial Engineering techniques are very helpful in any organization for increasing
its productivity and quality. The garment sector in Sri Lanka, India, China, and other
competitive countries employ IE techniques to make their processes and workers
more productive. IE techniques are helpful in addressing / estimating lead times, no.
of workers, working / operating time, costing, process designs, process flows, line
balancing, best methods to produce, etc. In Pakistan, the industrialists are realizing
the importance of IE and making their efforts to establish IE departments within
their companies. Only few companies are successful in this regard, but still unable to
tap the full potential of IE.
Therefore, it is proposed to establish and/or strengthen industrial engineering

departments in the companies and in plant arrangements for the training of
technical personnel are required in order to implement the IE techniques more
effectively. Moreover, master trainers on IE should be developed from foreign
institutions.
Suggested techniques to implement are work study, method study and value stream
mapping.
8. Supply Chain Management
Supply Chain Management (SCM) is the process of planning, implementing, and

controlling the operations of the supply chain as efficiently as possible. Supply Chain
Management spans all movement and storage of raw materials, work-in-process
inventory, and finished goods from point-of-origin to point-of-consumption. In
essence, Supply Chain Management integrates supply and demand management
within and across companies. It is all about having the right product in the right
place, at the right price, at the right time and in the right condition.
We can also use the concept of Quick Response in order to understand the supply
chain management. The quick response strategy is to linking manufacturer, supplier
and retailer with each other and cooperates effectively in order to reduce the lead
time of the production. Generally, many manufacturers, suppliers and retailers are
struggling to use information technology for adopting quick response strategy and to
streamline their supply chain. At present, some textile enterprises use quick

Garment Sector
response system to be the leaders and to have a competitive advantage over their
competitors.
The textile and garment industry in Pakistan should have to adopt effective supply
chain management systems in order to face the challenges of global
competitiveness. They have to be quick in their responses and even quicker to meet
the increasing demands / trends of the customers. They have to streamline their
supply chain to timely process the production orders of their customers. They have
to think of the lead time to export, for example which is 5 days in Denmark and 25
days in Sri Lanka as compared to 33 days in Pakistan (refer to page 11). They have
to work on reducing the lead time along with their stakeholders including the
government. They have to benchmark other countries in order to be competitive in
this arena.
9. Inventory Management Systems
Missing of the raw material is also the major cause of high cost. It is observed that
in many factories there is no proper system for controlling the inventory. Due to
which raw materials are lost about 5% in every month particularly small items such
as label, snap, zipper, etc. Moreover many errors and omission were observed in the
records for stock, which is undesirable (a crime) in any industry.
Efforts are required to be put on revamping and adopting an effective and efficient
inventory management system based on the new tools and techniques prevalent
especially in the garment sector. This can also be rectified by hiring of consultants
on inventory management systems.
Suggested techniques to improve are to implement Enterprise Resource Planning

(ERP) and Material Resource Planning (MRP) programs.
10. Inefficient Storage
Storage is an integral part of any industry. It is the place where we place / store
items for certain period of time and use on when and where necessary basis. The
inventory on the other hand is the list / register of those items.
Mostly in the Pakistani garment factories, the people do not have the know how of
how to store the items. They do not have the proper concept of inventory
management; instead they are just maintaining registers. Inventory levels are not
defined and sometimes they have to wait for the item to be purchased from the
market. Similarly, the placing of items is also not proper, and if one has to find a
certain item, he / she has to spend time in searching for that particular item. Also, in
many companies we find things that probably should not be in the store or not
required / needed (for example old fabric, old accessories & machines, raw material,
finished goods, etc.), thus incurring extra cost.
It is required to improve the storage designs keeping in mind the first in first out
(FIFO) rule, space utilization, identification & traceability, ease of search & access
and handling of items. It is also required to put due emphasis on stores, which is a
neglected department in almost every factory. It is also important to dispose off the
items that are not necessary in order to effectively utilize the money.
Some of the factories are also facing the problem of insufficient space for storage,
which may be addressed by hiring extra storage space (where needed). However,
the recommendation is to adopt just in time concept in the factories so that the

Garment Sector
industrialists may not require big storage rather they try to streamline their supply
chains and minimize the inventory.
11. Shortage Of Raw Material
This problem is linked with the material handling system or the inventory
management system. This is also the result of poor supply chain management
system. Addressing these issues would solve the problem of shortage of raw
material.
12. Fabric Utilization
“Many garment businesses misunderstand that labour cost is the most important
item to control cost and do not concentrate to control cost of raw material in
particular fabric.” This kind of thinking can lead them to high cost, therefore, the
management should have to implement fabric utilization project by using computer
program, hire consultant, training employee, and establish fabric utilization.
13. Quality Management
Mostly top management has concerns on quality; and the emphasis is on quality
control staff of customers and strong inspection control of the production lines and
the finished goods. But this is not the end; today the concept of quality is more
challenging and demanding. It requires a lot more effort than in the past days. It
requires implementing different standards such as WRAP, ISO 9000, ISO 14000, SA
8000, OHSAS, etc. in order to be competitive in the global market. It also requires
the modern concepts of TQM and Kaizen Management in order to improve
continuously apart from observing the standards. Adoption of an Integrated
Management System is necessary in this context. It needs strong management
commitment and dedication of the staff to achieve quality; quality workforce, quality
skills, quality environment, quality team management, quality leadership, quality
documentation, quality control, etc.
All this can be achieved through training of existing personnel, master

trainers/consultants, strong and focused planning and a visionary & committed
leadership.
INNOVATION DRIVEN ASPECTS
14. Technology Development
Technology development is another aspect of competitive advantage among the

companies. Most of the companies in the dyeing & garment sector do not support
technology development and their process designs are weak or less productive than
their competitors in the global market. Some of the large companies have invested a
lot of money to recruit experienced people and consultants to develop their process
designs, including the usage of computer software and high tech machines like
Garment Gerber Technology (GGT) and computerize hanger system in garment
sector, automatic chemical dozing & computerize sampling in dyeing. The result is
that they are surviving in the global markets.
Our garment industry, at large should focus on their R&D capabilities and activities
in order to develop their technology and to be competitive.

Garment Sector
15. Brand Management
Most of the companies have not created their own brand which present the
companies face to the market. So a consideration as a business strategy for future is
to start creating a permanent own brand and to try selling the products with it to the
existing buyers at a so-called advertisement price which means no commercial price
just to develop it.

Garment Sector
RECOMMENDED IMPLEMENTATION PLANS FOR QUALITY &

PROCESS IMPROVEMENT AND COST REDUCTION
Keeping in view the SWOT analysis, the above discussion and the problems
identified (mainly related to quality, process and cost), we recommend following
Implementation Plans
a. Quality Improvement Plan (Phase-I)

b. Process Improvements Plan (Phase-II)
c. Cost Reduction Plan (Phase-III)
The tentative timeline of each plan / phase is one year and it can be customized as
per the company needs.
Expected Improvements
After implementing this implementation plan following improvement can be expected

in our selected KPI’s.
Sewing/IE/Maintenance
Sr. Expected score

Key Performance Indicator Scored Points
# after 3 years
1. Production per machine 7.29 8.00
2. Defects %age 3.67 7.00
3. B-Quality %age 2.67 5.00
4. Through put time 6.00 7.00
5. Safety & housekeeping 4.86 7.00
Average 4.90 6.80
Cumulative improvement 38.00%
Dyeing/Finishing
Sr. Expected score

# after 3 years
1. Work method 6.25 8.00
2. Time line 5.50 9.00
3. Quality 6.38 9.00
4. Housekeeping 5.86 8.00
5. Training 6.38 9.00
Average 6.07 8.60
Knitting
Sr. Expected score

# after 3 years
1. Work method 7.00 8.00
2. Time line 5.50 9.00
3. Quality 7.50 9.00
4. Housekeeping 5.50 8.00
5. Training 4.50 8.00
Average 6.00 8.4

Benchmarking Study in
Garment Sector
Implementation Plan for Quality Improvement
Months
Sr. Activities Description of Activities
1 2 3 4 5 6 7 8 9 10 11 12
1. Selection of Project  To be officially appointed reporting to MD/CEO, selected
Manager from senior management (Manager and above level,
preferably from IE department)
 Fully responsible for the execution and implementation of
the project
 Well versed with the operations and production processes
 Devote reasonably enough time to the project
2. Brain storming  Brainstorming session chaired by a trained person, and
following activities to be done:
- Selection of Master Trainer
- Problems identifications
 Two trainers from each department
 Ratio of master trainer to worker (10:1000)
3. Training of Master  Training of Trainer(TOT) Program
Trainer - Quality tools
- Productivity tools
- Cost reduction techniques
- Training assessment techniques
- Formation of Presentation
- Effective problem identification and problem solving
tools.
- Standardization
4. Productivity audit - Pre-assessment of company process with the special
focus on current Quality Techniques & Processes by
using the photograph, videos etc.
5. Brainstorming session  The main objectives of this session are:
- Identify critical processes and the problems with main
focus of quality control techniques, defects analyze
techniques
- to develop strategic plan

Garment Sector
- Refining objectives / goals / roles & responsibilities.
6. CEO Approval for the  Briefing to the senior & top management of the plans by
Strategic Quality the Project Manager / Master Trainers
Process Improvement  Ensuring confidence & commitment of CEO and senior
Plans (SQPIP) management
 Approval of the strategic plans and official confirmation of
roles and responsibilities
 Allocation of resources (man, material, etc.)
7. Quality Improvement  Master trainers will analyse Quality Control process.
Initiatives (by the  Master Trainers will utilize quality analysis and defect
respective Master analysis techniques.
Trainers)  Master trainers utilize the 7 QC tools for identify the
quality problems.
 They will focus on the Quality Improvement technique like
5S, Kaizen, Quality Control Cycle, IE tools and Six Sigma.
 They will also arrange session for quality controllers to
enhance their quality auditing abilities.
 Master trainers will form the strategies for developing the
TQM environment.
8. Setting Action Plan &  Based on the above analysis, the master trainers will form
Targets an action plan
 These action plans will be furnished with specific
achievable targets / goals
9. Formation of  Master Trainers to select 4-5 member team from each
Departmental Quality department for the implementation of the Action Plan
Improvement Team  The selected members are to be preferred from Quality,
(QIT) Production and IE department.
 Master Trainers to act as team leaders / facilitators, will
also assign the roles and responsibilities to the team
members and guide them throughout the implementation
phase.

Garment Sector
10. Implementation of  Master Trainers will be responsible to implement &

Action Plan monitor the action plan within time lines / targets
 Master Trainers will also be responsible to adopt for any
changes in the Action Plan, as per the changing needs /
situations
11. Results  Master Trainers will analyse & compile the results
(especially keeping in view the selected KPI like defect
%age, B-Quality %age, rework %age)
 He will be responsible to report for the results to the
project manager / management
 He / team members will present the results to the
management, which will help improving and grooming the
presentation skills of the team members
12. Others / Remarks  Based on the results, each team member will be rewarded
on the discretion of the management as per the set criteria
developed by the project manager
 An international expert can be hired for the quality
improvement analysis and setting / implementation of
action plan (NPO Pakistan can help in hiring the
international expert for 15 days, free of cost)

Garment Sector
Implementation Plan for Process Improvement
Months
13 14 15 16 17 18 19 20 21 22 23 24
1. Assessment  Post-assessment of phase-I
 Pre-assessment of company processes with special
focus on layout (plant/machine), current operational
techniques, method/work study and working
environment by using photographs, videos, etc.
2. Brainstorming session  The main purpose of this session is:
for critical processes - Identify critical processes and the problems with
identification special focus on layout (plant/machine), current
operational techniques, method/work study and
working environment
- to develop strategic plan on the basis of the above
- redefining objectives / goals / roles &
responsibilities
3. CEO Approval for the  Briefing to the senior & top management of the plans
Strategic Process by the Project Manager / Master Trainers
Improvement Plans  Ensuring confidence & commitment of CEO and
(SPIP) senior management
 Approval of the strategic plans and official
confirmation of roles and responsibilities
4. Operational Efficiency  Master Trainers will utilize process analysis, work
Improvement Initiatives analysis, defect analysis techniques
(by the respective  In process analysis, they will analyze existing process
Master Trainers) with 3 Gen Japanese Technique, find out critical
process for work analysis and recommend an
improved process with Flow Production
 In work analysis, they will analyze the critical process
in-depth by Stratified Data Collection with 3 Gen from
the view point of time loss and material loss; and

Garment Sector
recommend an improved work applying Best

Conditions and Quick Action
 Master trainers will also focus on the concepts of 3
Mu, Muri (un-natural), Mura (un-even) & Muda
(waste), for waste reduction
 Master Trainers will also utilize the Six Sigma
concepts / methodology (DMAIC) for process
improvement
5. Setting Action Plan &  Based on the above analysis, the master trainers will
Targets form an action plan
6. Formation of  Master Trainers to select 4-5 member team from each
Departmental Process department (or continue with the previous selected
Improvement Team team, as per the situation) for the implementation of
(PIT) the Action Plan
 Master Trainers to act as team leaders / facilitators,
will also assign the roles and responsibilities to the
team members and guide them throughout the
implementation phase.
Action Plan monitor the action plan within time lines / targets
 Master Trainers will also be responsible to adopt for
any changes in the Action Plan, as per the changing
needs / situations
8. Results  Master Trainers will compile all the results and

analyze (especially keeping in view the wastage, lead
time, through put time, work method)
management team by preparing a PowerPoint

Garment Sector
presentation, which will help improving and grooming

the presentation skills of the team members
9. Others / Remarks  Based on the results, each team member will be
rewarded on the discretion of the management as per
the set criteria developed by the project manager
 An international expert can be hired for the process
improvement analysis and setting / implementation of
action plan (NPO Pakistan can help in hiring the
 With the implementation of this phase following
improvements can be expected:
- 05-10% process improvement
- 08-10% increase in productivity
- 04-06% wastage control
- 05-10% rework control
- 15-20% enhanced labour productivity
 Expected operational efficiency after implementation
of proposed initiatives can be increased upto 30%

Garment Sector
Implementation Plan for Cost Reduction

Months
25 26 27 28 29 30 31 32 33 34 35 36
1. Assessment  Post-assessment of phase-II
 Assessment of existing situation
 Point out the areas for improvement
2. Brainstorming session  The main purpose of this session is:
for cost reduction - Identification and prioritization of cost critical
(participation should be areas / processes / parameters with special focus
from finance, on production, material and logistics
production, quality, IE - Strategic planning on the basis of brainstorming
& other relevant depts.) and assessment
- redefining objectives / goals / roles &
responsibilities
3. Evaluation and  evaluation and estimation (if any) of the strategic
Consensus of the plans
Finance Department for  Distinguishing controllable and control resistant cost
the strategic plans (in drivers
consultation with the  feasibility report / endorsement of the strategic plans
project manager)
4. CEO Approval for the  Briefing to the senior & top management of the plans
Strategic Cost by the Project Manager / Master Trainers
Reduction Plans  Ensuring confidence & commitment of CEO and
(SCRP) senior management
 Approval of the strategic plans and official
confirmation of roles and responsibilities
5. Cost Reduction  Master Trainers along with project manager, 1 person
Analysis from IE dept. and 1 person from Finance dept. will be
responsible to work on this phase
 They will work on reduction of
- production costs (Factory utilization and

Garment Sector
production line costs , Eliminating defects and

scrap and rework costs, Flow production and
Just-in-Time (JIT) methods , Scheduling to reduce
underutilization costs),
- material acquisition costs (Reducing material
content and real material cost, Replacing
procurement transaction costs with annualized
agreements, How to convert your purchasing
function to a true supply chain organization),
- Inventory costs (Dramatically reducing
inventory...quickly, Setting safety stock levels,
order points, and lot sizes, Reducing WIP
inventory investment, The relationship of lead-
time to inventory investment),
- Cost of logistics (Identifying cost trade-offs in
logistics, Using time-to-shelf as a competitive
weapon, Price and cost relationships in logistics)
- Information management & Transaction
processing costs (Information system cost drivers,
Improving information systems performance and
effectiveness, Outsourcing opportunities in IS,
Assuring information integrity)
 They will perform following analysis
- Activity-based Cost (ABC) analysis
- P-Q analysis
- Hidden cost analysis
- Break even analysis
 They will develop optional solutions and screen
optional solutions
6. Setting cost reduction  Based on the above analysis, the master trainers will
target form an action plan
7. Formation of  Master Trainers to select 4-5 member team from

Garment Sector
departmental Cost production, finance and quality department (or

Reduction Team continue with the previous selected team, as per the
(CRT) situation) for the implementation of the Action Plan
 Master Trainers to act as team leaders / facilitators,
will also assign the roles and responsibilities to the
team members and guide them throughout the
implementation phase.
action plan monitor the action plan within time lines / targets
 Master Trainers will also be responsible to adopt for
any changes in the Action Plan, as per the changing
needs / situations
9. Result  Master Trainers will compile all the results and
analyze (especially keeping in view cost per minute)
management team by preparing a PowerPoint
presentation, which will help improving and grooming
the presentation skills of the team members
10. Others / Remarks  Based on the results, each team member will be
rewarded on the discretion of the management as per
the set criteria developed by the project manager
 An international expert can be hired for the cost
reduction phase (NPO Pakistan can help in hiring the
 With the implementation of this phase following
improvements can be expected:
- 15-20% cost reduction
- 08-10% increase in productivity

Garment Sector
FACILITATION AND SERVICES BY NPO
The National Productivity Organization (NPO) has been working for the productivity
movement in the country with the objective to enhance and promote quality and
productivity culture in Pakistan. NPO also serves as the Liaison Office of
Asian Productivity Organization (APO), Japan.
The NPO is engaged in providing Training, Consultancy, Benchmarking, Energy Audit

and Research services to its clients for productivity improvement in the public and
private sectors in the country in addition to hosting the international Seminars,
Symposiums and Workshops in collaboration with the Asian Productivity Organization
(APO).
The main thrust areas of NPO are

 Training & Consultancy
 Benchmarking
 Energy Efficiency
 Innovation & Quality
 Social Sector Development
 Green Productivity
The NPO has so far successfully organized a number of national and international
Training Programs as well as international conferences on productivity, corporate
training courses, Energy Audits in textile sector, Benchmarking study in the spinning
& garment sector.
Keeping in view the recommendations and the Implementation Plans (on Quality,
Process Improvement and Cost Reduction), the National Productivity Organization
(NPO) can offer following free of cost services to the garment sector;
 Productivity Assessment
 Organizational Assessment
 Energy Audits
 Benchmarking services
 Training services
o Performance Excellence
o Kaizen Management
o Total Quality Management
o Total Productive Maintenance
o Quality Control Circles
o Business Excellence
o 5-S Japanese Technique
o 3-Gen Japanese Technique
o 3-Mu Japanese Technique
o Just in Time (JIT)
o Energy Efficiency
o Green Productivity
o 3-R; Reduce, Reuse & Recycle
o Arrangement of session for quality controllers to enhance their quality
auditing abilities.

Garment Sector
 Consultancy services
o QC tools implementation to identify the quality problems

o Implementation of Quality Improvement techniques like 5S, Kaizen,
Quality Control Circle, IE tools and Six Sigma.
o Implementation of process analysis, work analysis, defect analysis
techniques
o Assistance for the analysis of existing processes with 3 Gen Japanese
Technique
o Implementation of 3 Mu, Muri (un-natural), Mura (un-even) & Muda
(waste), for waste reduction
o Cost Reduction Strategies
 production costs reduction (Factory utilization and production
line costs , Eliminating defects and scrap and rework costs, Flow
 production and Just-in-Time (JIT) methods , Scheduling to
reduce underutilization costs)
 Inventory costs (Dramatically reducing inventory...quickly,
Setting safety stock levels, order points, and lot sizes, Reducing
WIP inventory investment, The relationship of lead-time to
inventory investment)
 Activity-based Cost (ABC) analysis
 P-Q analysis
 Hidden cost analysis
 Break even analysis
 APO Services
o Technical Expert Services
o Demonstration/Model Companies
o Observatory Study Missions
o e-Learning Programs

Garment Sector
CONCLUSION
This study has identified the most pressing needs. Yet as already noted with
sufficient interest, effort, and resources applied to basic production techniques and
managerial disciplines, factories have great potential to increase productivity.
Improvements in productivity of 20-25 % can be achieved with the right attitude
and climate. A systematic program to introduce modern management concepts,
including industrial engineering, production engineering, systems and controls is
therefore of the highest priority. Training and professional development to
implement such a program are needed.
In comparing experience to national and international benchmarks, the following

observations can be made; Training is extremely weak. Often factories have no
separate training budgets and no defined training program. The few programs that
exist do not have a basis in scientific training principles; rather an assumption is
made that time will allow operators to attain the necessary skills. However, the
current approach to training often poor methods, and as a result is detrimental to
productivity.
The most effective and lowest-cost strategy for raising productivity and quality is
training to address weaknesses in professional development, production controls,
industrial engineering and organization of work.
Training of production personnel, particularly middle management and supervisors,

is essential for achieving the highest levels of flexibility, productivity, and quality.
Training programs and production controls must be designed specifically for that.
Professional development systems should focus on the retooling of personnel who

may have many years of practical experience but little theoretical background. The
purpose of the training should be oriented not only towards reducing manufacturing
costs but also towards introducing procedures for production, quality control,
planning, and information systems.
This finding has significant implications for top management and their investment
decisions because it demonstrates that it pays to invest in people and system as well
as in equipment.
Demand for operational, technical, and managerial skills in the industry will continue
to grow, as will demand for workers with practical job skills. It will need a workforce
skilled in technical and management. These longer term requirements for education,
training, and development should be for commercial future.
Compared to international best practice, staffing levels are generally too high. This
results from poor practices as well as insufficient training.

Garment Sector
BENEFITS OF IMPROVED PRODUCTIVITY
Increased Reduction in
 Volume of outputs  Volume of rework

 Skilled middle  Volume of rejects
management and
 Lead times
operators
 Number of late deliveries
 Number of machine
breakdowns
 Absenteeism
Improved
 Employee turnover
 Quality of products  Overtime
 Customer service  Cost per minute
 Safety
 Housekeeping
 Flexibility of workforce
 Technology
HIGHER PROFITS

Garment Sector
ABBREVIATIONS
AVG. Average
BN$ / Billion USD Billion US Dollars
GGT Garment Gerber Technology
HT technology High Temperature Technology
MIS Management Information System
NPO National Productivity Organization
QC Quality Control
SOP Standard Operating Procedure
SPC Statistical Process Control
SWOT Strength, Weaknesses, Opportunities and Threats
WTO World Trade Organization
WWTP Waste Water Treatment Plant

Garment Sector
ANNEXURES
Annexures are attached separately due to the confidentiality agreement with the
beneficiaries, which include following documents;
 Detailed Data Information Reports

 Sewing, Industrial Engineering & Maintenance ... Annex-1
 Dyeing/Finishing, Knitting & Laundry …….... Annex-2
 International Benchmarks …….… Annex-3

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Benchmarking Study

NATIONAL PRODUCTIVITY ORGANIZATION (NPO)

“We have dedicated a considerable amount of time to the analytical appreciation of

 Sewing, Industrial Engineering & Maintenance

 Dyeing/Finishing, Knitting & Laundry

Benchmarking Advisors: Mr. Hasan Haider

Copyright ® National Productivity Organization Page 1 of 78

Benchmarking, a new concept of knowledge sharing, refers to a continuous learning

Assigned and agreed Technical fields/functions were Dyeing/Finishing, Knitting,

Copyright ® National Productivity Organization Page 2 of 78

TEXTILE INDUSTRY IN ASIA

Imports from developing countries have increased considerably in volume but

Total Total Apparel

Bangladesh 137 4,000 1.90 5.7 75

China 1,317 38,970 4.60 61.0 10

India 1,027 60,000 4.00 6.0 8

Indonesia 224 2,368 0.377 4.3 6

Pakistan 167 5,000 0.70 2.7 22

Sri Lanka 19 830 0.35 2.6 46

Thailand 67 2,672 0.85 3.4 5

Vietnam 85 1,050 2.00 4.3 13

Copyright ® National Productivity Organization Page 3 of 78

WORLD TEXTILE & APPAREL TRADE

Copyright ® National Productivity Organization Page 4 of 78

Worldwide Textile & Clothing exports in 2004:

2007 projection: over 45%

Copyright ® National Productivity Organization Page 5 of 78

USA Imports of Textile & Apparel (Jan 2005 VS Jan 2004)

The WTO “Effect”

VALUE in millions of dollars % CHANGE from January 2004

Mexico 524 -3,80%

World $6,886 6,98%

Copyright ® National Productivity Organization Page 6 of 78

BACKGROUND OF THE STUDY

Copyright ® National Productivity Organization Page 7 of 78

TYPICAL CAUSES OF HIGH LABOR COSTS IN PAKISTAN

 Standard Minute value is erroneous

 Insufficient man & machine utilization

 Poor line balancing

 Inconvenient work environment and housekeeping

 Unskilled quality management

 Machines at low levels of efficiency

 Ratio of indirect-to-direct labor is too high

 Range of products with little added value

 Machine maintenance is low

 Weak work methods & process controls

 Training is extremely weak, especially at middle management

Copyright ® National Productivity Organization Page 8 of 78

LABOR COSTS IN THE GARMENT INDUSTRY IN ASIA

(US$ per Operator Hour)

Copyright ® National Productivity Organization Page 9 of 78

SYMPTOMS OF LOW PRODUCTIVITY IN ASIA

• Materials: Huge amounts of waste, excessive usage

• Productivity: Low performance, excessive lost time,

• Machine capacity: Breakdowns, low output, high costs

• Work Methods: Excessive handling

Copyright ® National Productivity Organization Page 10 of 78

Benchmarking-Time to Export (Days)

Copyright ® National Productivity Organization Page 11 of 78

OBJECTIVES OF THE STUDY

The exercise was designed around the following objectives:

 To prepare and guide selected garment exporters in becoming