Principles of Management 1

Assignment : 1

Five Major Changes that has changed the Management

approach due to Technology & Automation in the context of
Bangladesh’s Ready Made Garment Industry

Batch- 3, Section -3, Group -4

Submitted To
Faculty : Prof. Sheikh Morshed Jahan
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Team Members

Name : Rakibul Azad Name : Shahariyar Shuvo Name : Tasnia Mohona

ID : 11321 ID : 11433 ID : 11064
Mobile : 01774864457 Mobile : 01670931406 Mobile : 01674304696
Email : Email : Email :
rakibul.azad.47@gmail.com shahariyarshuvo1@gmail.com tasnia.mohona@gmail.com

Name : Md. Mahfuzul Islam

Name : Abdullah Al Bitar
ID : 12650
ID : 13185
Mobile : 01675942672
Mobile : 01521201279
Email :
Email : bitar.al.mr@gmail.com
mahfuzul0028@gmail.com
 3
Team Members

Name : Monir Hossain Bhuiyan

Name : Sharif Al Khayam Name : Nurul Amin
ID : 10095
ID : 13426 ID : 12985
Mobile : 01789754526
Mobile : 01730218437 Mobile : 01670149809
Email :
Email : paragsharif@gmail.com Email : namin.dc@gmail.com
Mhbnsbutex@gmail.com

Name : Md.Fakhrul Alam

Name : S M Maruf Hossain
Shourav
ID : 12001
ID : 11855
Mobile : 01749820333
Mobile : 01521493490
Email : maruf.2083@gmail.com
Email : mdfa.shourav@gmail.com
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Introduction
The readymade garments (RMG) industry is vital to Bangladesh
economy. It contributes 84 percent of the total exports nearly 13
percent of the GDP and employs some four million workers. The
fourth industrial revolution is under way and bringing with it a
series of upheavals robotics, automation, machine learning, and
artificial intelligence are gradually making their way into the
production process all over the world which also significantly
impacted our RMG Industry.
 Five Major Changes that changed the 5

Management approach

HUMAN RESOURCE LOCAL

REFORMATION SOURCING

COMMUNICATION DIGITALIZATION IN SKILL

WORKPLACE DEVELOPMENT
OF WORKFORCE
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1.Communication

Communication is the way of giving and receiving

information. It’s the most important criteria in our life when it
Comes to deal with people. We can’t even think of completing
a single step or process without communication.
So we can easily understand the importance of effective
communication in business growth
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1. Communication
The channels of communication in garment industry :

Buyer to Trading/ Buyer to Garment Trading / Liaison Garment Internal

Liaison office Manufacturer office to Garment manufacturer to Communication
manufacturer. Raw material/
component
manufacturer.
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1. Communication
The communication tools used in garment industry :

● E-mail
● Telephone/ Cell phone
● Microsoft Teams
● Whatsapp/Viber
● Project management apps
● Video conferencing tools.
● Intranet/ shared portal.
 1. Communication 9

Impact of technology in Communication :

Efficient and instant Experience visual sharing Accessing and sharing

decision making. with audio and text. information from anywhere.

1 2 3 4 5 6

Easy and fast knowledge Remote Working and Improve business relation
and idea sharing. flexibility. and understanding.
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2. Human Resource Transformation

Effect of Automation in Job Role

Machines are substituting the human workforce. Such

as Packing, Cutting , Auto CAD are now done by robots
or machines.
But along with that due to technology or automation
new job opportunities are creating. Management are
now focusing skilled workforce to run the new
machineries and maintain those automotive machines.
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2. Human Resource Transformation

Effect of Automation in Human Resource Management

● Online recruitment: Earlier company recruits by publishing notice at office gate . But now
Organizations connects with potential employee by circulating job opening via BDjobs,
LinkedIn etc and recruit by quicker process and cost effective way. Technology has made a
global field to interact between employer and employee.
● Making E database & Digital repository: Resumes ,prospective profile and employee
information are now kept in E-database. BGMEA has developed a digital repository platform
to store comprehensive date on RMG workers.
● E performance & management: Technology enables to collect, store and analyze data to
measure individuals’ performance that helps to make productive decision based on data
analysis rather than self-esteem.
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2. Human Resource Transformation

Effect of Automation in Human Resource Management

● E-training: Availability of technology helps to teach without assembling in same place in same
time.
● E payment: Technology helps organizations to move into cashless wage payments. Payments
enable companies to minimize human interactions during financial transactions on workers
can get their wages on time. In November’ 19 Government, Manufacturer, Brands and other
related associations commit to digitize 90% RMG workers’ wages in Bangladesh by 2021.
Once Bangladesh Bank released the circular to digitize all RMG factories wages disbursement
in less than two weeks 1.92 million mobile wallet was created. During Covid-19 crysis 77%
workers were getting paid digitally.
3. Local Sourcing
MANAGEMENT’S affinity to
diversities of organization’s capability
With the increase of automation,
management's approach to invest in a
diverse production facility and creating new
division in the organization such as own
design and developing team to help the
sourcing of ideas. Buyers are having a wider
pool of eligible suppliers and collect /choose
the eligible product/ material to support
their needs.
13
MANAGEMENTS reach to Man
machine and material
With the technological advancement, it’s easier to
find a global marketplace/ medium in your electronic
devices- where you can look for the raw material,
machine (like Alibaba) or even the experienced
workforce (linked in) to strengthen the sourcing
locally and keeping the product attribute/ prices
more in your control. The sourcing hubs can employ
various skilled people from abroad who can help the
local sourcing and production process that ultimately
benefits the purpose of local sourcing.
3. Local Sourcing
TECHNOLOGY to gauge the sustainable
production journey and affecting the
organization structure:
Every company is looking at the sustainability
specialist to appoint as there has been a
significant increase of production and product
variety which demands different kind of
chemical and rigorous processes. Also, the
need of sustainable production has created a
multitude of products and jobs those weren’t
very much common a decade earlier.
14
The Concept of becoming SUPER
VENDOR
In this period of 4th industrial revolution
(4IR),technology and automation have turned vendors
to super vendors who have short lead times, faster
order runs, more diverse styles, and high fashion
apparel. Digital transformation also helps reduce the
cost of bidding for more orders. Such vendors can also
offer different technologies such as Assist AI, artificial
solutions, creative virtual, 3D printing and knitting,
FID etc.
3. Local Sourcing 15

TECHNOLOGY turns the COST BASED MODEL to FAST FASHION

Fast fashion refers to inexpensive and trendy apparel that is made & sold in the market in record
times. As a result of fast fashion, the average amount spent on clothing by a consumer has increased
by 60 percent from 2000 to 2014. The lengthy design conceptualization, sample making, importing
raw materials from overseas and prototyping process that the RMG sector had earlier, haves been
replaced by a photo-realistic virtual simulation of design concepts. Also, the idea of utilizing locally
sourced raw material has become a trend so the backward linkage has been enriched. By incorporating
technology in automating various manufacturing steps, the requirements of fast fashion have been
met.
4. Digitalisation 16

Digitalization

Digitalization is the use of digital

technologies to change a business
model and provide new revenue and In Operation In
value-producing opportunities; it is Management
the process of moving to a digital
business.

Impacted area of Digitalization in an Data Remote

Management management
organization shown in the diagram.
4. Digitalisation 17

Roadmap Governance:

Quality data is a critical success factor to the

development of the business world’s most forward-
thinking capabilities, such as data analytics, machine
learning and artificial intelligence. As a result, data has
a vital role to play when it comes to digital
transformation. When the data analyzed digitally
without error its become asset to make successive
decisions

Product KPI:

Product Development KPIs help in assessing the

factory’s ability to develop new products. Because of
the Digitalisation we can manage it easily & the
outcomes are quite progressive.
4. Digitalisation 18

Maintenance management System:

A computerized maintenance management system

or CMMS is software that centralizes maintenance
information and facilitates the processes of
maintenance operations. It helps optimize the
utilization and availability of physical equipment
like vehicles, machinery, communications, plant
infrastructures and other assets.

Advanced process control by data management:

The goal of advanced process control (APC) is to

increase the performance of control over processes
that contribute to production. Applying constant
control over this process not only helps to simplify
the production process but also helps to make
production output results more predictable.
4. Digitalisation 19

Work in progress (WIP) software to reduce lead

time:

Work in progress or process is a piece of software

management Or piece of work or a product that
has been begun but is not finished or ready. In the
meantime if work progress is discontinued for
some reason, system will let know or aware
management as a result lead time of production
will reduced if the reason identified as soon as
possible.
4. Digitalisation 20

The major changes came in play for RMG sector of Bangladesh due to Digitalization

● Data management – Adaptation of ERP/SAP (KPI and Data Analysis)

● Adaptation of Digital payroll system - (Bank and mobile finance system)

● Digital repository to detail Bangladesh RMG workforce.

● Product Sustainability – (traceability of sustainable, green, and recycle product source/origin

through universally available platform.)

● Remote Management (Virtual Meeting, Audit, and inspection)

● Adaptation of Digital sampling process (3D development)

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5. Skill Development

The garments sector has played an important role in uplifting the economy of Bangladesh—
creating numerous jobs, pushing down the number of people living in poverty, and fostering
female labour participation. A major drawback however is that a large portion of the workers
employed in the RMG sector are unskilled; especially with automation.
According to the government’s a2i project and the International Labour Organisation (ILO),

60%
(5.38 M) 2030
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5. Skill Development

The reasons for which Management approaches to emphasize on Skill development on

Technology and Automations are as follows :
To cope up the upcoming challenges in technological era :
Bangladesh is losing in competition with Vietnam, which has overtaken Bangladesh as the second-
largest garment exporter in 2020. A significant reason behind this shortcoming can be attributed
to the fact that the Vietnamese RMG industry has been a better recipient of 4IR tech compared to
Bangladesh. Because of this management are focusing deeply to develop technological skill
development to overcome the upcoming challenges.
5. Skill Development 23

3D software & AI technologies for the advancement

In the apparel industry, the 4IR is changing the traditional operational methods through
automation, artificial intelligence, 3D printing and knitting, robotics & intelligent manufacturing,
augmented reality, etc. At the same time, it is also changing the industry itself by introducing new
consumer trends. Thus Management are focusing skill development of the workers and employees
to have a skilled workforce.

Investment in Fast Fashion Product

In recent years, changes in the fashion industry have impacted the sourcing model, which
transitioned into a trend termed ‘fast fashion’. Fast fashion refers to inexpensive and trendy
apparel that is made & sold in the market in record times.
So, being cost-efficient is not the only requirement anymore. Faster production and reduced lead
time are needed to stay on top of the industry. Digitalization and automation are crucial for the
ready-made garments industry to keep up with the ever-changing market.
5. Skill Development 24

Increasing efficiency and reducing lead time

Automation impacts manufacturing through reducing workforce and consumption of time. It is
very important to have a skilled workforce are trained with the new technology and automation
to reduce time and produce more in the manufacturing unit.
5. Skill Development 25

Ensure Sustainability

According to McKinsey & Company, environmental sustainability will become a key apparel
purchasing factor by 2025. To address the linear supply chain and increased need for quick
transportation, companies need to make investments in automation, nearshoring, and
sustainability.

With these challenges in mind, the Bangladeshi RMG sector has made a robust initiative to adopt
‘green manufacturing’ practices – using innovative technology to bring solutions to saving energy,
water, and resources. Technology has been bringing in alternatives such as waterless dyeing, bio
fibers, conversion of waste to new fabrics, etc. So without skilled workforce it is not possible to
keep pace with these new technology and that’s why management are focusing on technological
skill development of the workforce.
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Conclusion
Despite the challenges, Bangladesh's RMG sector has a bright future as new possibilities
emerge. Due to the US-China trade war, for example, US-based fashion businesses are
transferring their sourcing away from China, and Bangladesh is one of the greatest options
available. Some Chinese RMG factories have already relocated to Dhaka and begun operations.
Furthermore, it is an appealing solution for RMG goods due to its adoption of compliance,
transparency, factory and occupational safety, and green industrialisation. The RMG sector may
once again become the hero of the Bangladesh economy with effective labour force training,
finance for SMEs, and widespread use of technology throughout the industry.