4 - Strategy For Productivity Improvement
4 - Strategy For Productivity Improvement
4 - Strategy For Productivity Improvement
Journal
Apparel manufacturing: a strategy for productivity improvement
Rajesh Bheda A.S. Narag M.L. Singla
Article information:
To cite this document:
Rajesh Bheda A.S. Narag M.L. Singla, (2003),"Apparel manufacturing: a strategy for productivity
improvement", Journal of Fashion Marketing and Management: An International Journal, Vol. 7 Iss 1 pp. 12 -
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
22
Permanent link to this document:
http://dx.doi.org/10.1108/13612020310464331
Downloaded on: 03 September 2016, At: 21:20 (PT)
References: this document contains references to 12 other documents.
To copy this document: [email protected]
The fulltext of this document has been downloaded 3991 times since 2006*
Users who downloaded this article also downloaded:
(1994),"Productivity and Production in the Apparel Industry", International Journal of Clothing Science and
Technology, Vol. 6 Iss 1 pp. 20-27 http://dx.doi.org/10.1108/09556229410054477
(2002),"Dimensions of apparel manufacturing strategy and production management", International Journal
of Clothing Science and Technology, Vol. 14 Iss 1 pp. 46-60 http://dx.doi.org/10.1108/09556220210420336
(2004),"Lean or agile: A solution for supply chain management in the textiles and clothing industry?",
International Journal of Operations & Production Management, Vol. 24 Iss 2 pp. 151-170 http://
dx.doi.org/10.1108/01443570410514867
Access to this document was granted through an Emerald subscription provided by emerald-srm:216788 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.
Introduction
In today's world, the textile and apparel industries make a significant contribution
to many national economies especially in the developing world. (Dicken, 1998;
Jones, 2002; Dickerson, 1995). An increasing number of countries, including India,
are exploiting this industry for reasons of economic growth (Dicken, 1998; Jones,
2002; Dickerson, 1995). The post multi-fibre arrangement era is likely to witness
growing competition mainly for the major consumption markets of North
America and Europe. Developing countries like India, which earn valuable foreign
exchange by exporting apparel, will be forced to open up their domestic market to
international players. The Indian apparel industry is likely to face stiff
competition in the quota-free world on both domestic as well as export market
fronts and it will need to improve its performance on quality, productivity, and
technology fronts. The major stumbling block for the Indian apparel industry in
becoming globally competitive seems to be the low productivity performance of
Indian manufacturers. This led to an in-depth examination of the potential for
productivity improvement in the Indian apparel industry after establishing the
best practices and factors associated with higher productivity levels.
Apparel productivity scenario
Journal of Fashion Marketing and
Management As per the British Institute of Management Foundation (BIM, 1976), the term
Vol. 7 No. 1, 2003
pp. 12-22
productivity denotes the productiveness of the factors of production, labour
# MCB UP Limited
1361-2026
and capital, in the creation of wealth. Productivity is linked with
DOI 10.1108/13612020310464331 productiveness as well as efficiency and hence it is concerned with the
utilisation of resources to produce a given output rather than simply the rate A strategy for
at which input generates output. As regards productivity indicators, productivity
physical measures like the ratio of output to labour inputs are suggested for
single or similar product industries. In an industry with multiple products of
improvement
close similarity, output is converted into an equivalent physical standard. In
multi-product and multi-service industries, productivity is also measured in
financial output terms. The ILO action manual Improving Working 13
Conditions and Productivity in the Garment Industry (Hiba, 1998) indicates
that at plant level partial measures are usually used to establish
productivity, as they are easy to understand and use. The studies reviewed in
this paper have used partial productivity measures, i.e. labour or machine
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
productivity.
A report by Kurt Salmon Associates (KSA, 1998) established that the
countries with the highest productivity ratings like Germany, the USA, France,
and the UK are 250 per cent more productive when compared with the least
productive country. The report used the data available to KSA on productivity
levels achieved by apparel factories across the world. The NEDO report on
Attainable Production Targets (National Economic Development Office, 1969)
dealt with production targets for jacket, trouser, and shirt manufacturers. As
regards shirts, a 25-minute target was recommended for high style mix; 20
minutes for middle price segment; and less than 20 minutes for low price
segment. The study indicated estimated potential for productivity
improvement in the British apparel industry of 45 per cent in jackets, 65 per
cent in trousers, and 45 per cent in shirts. The WIRA study titled Potential for
Increasing Clothing Productivity within the EEC (WIRA, 1979) concluded that
on average an increase in garment productivity of 4.7 per cent per annum was
possible in the EEC at that time.
In Quality and Productivity: Cornerstones of Apparel Manufacturing
(AAMA, 1976), the American Apparel Manufacturers Association illustrated
productivity improvement potential estimated by consultant members of the
association in six standard garments between the year 1960 and 1975. These
garments were assumed to be produced with the most modern equipment and
construction techniques available in 1960 and 1975 respectively. As regards
shirts, the direct labour productivity was estimated at 3.76 shirts an hour for
the year 1960 and 5.50 shirts an hour for the year 1975. The fact that the
majority of studies were carried out in the 1960s and 1970s reflects the
changing research interests of the major institutions over time. In the 1980s
research concentrated more heavily on other issues, such as quick response,
team working, quality assurance, CAD/CAM and supply chain management.
The authors believe that notwithstanding the changes that have taken place
over the last three decades these studies remain useful inspirational bench
marks, particularly as there is no substantial evidence that these benchmarks
have been surpassed.
The study conducted by ICRIER in 1993 (Khanna, 1993) clearly establishes a
productivity gap between the garment industry in India and its neighbouring
JFMM countries. The results indicate that in almost all the garment categories, Indian
7,1 garment manufacturers have the lowest productivity performance. As regards
gents shirts, it is 9.12 pieces/shift compared to 20.87 pieces/shift reported by
Hong Kong. Compared to the potential performance of 3.76 shirts per hour, as
indicated by AAMA experts for the USA manufacturers with the optimal
technology available in 1960, Indian performance is almost at a 30 per cent
14 level. This clearly establishes the need for measuring the current productivity
level achieved by the Indian apparel industry and also the need to establish the
factors affecting this performance.
Another study, Productivity Paradigms: An Appraisal of Select Apparel
Products in the Asian Region (Rajesh, 1997), aimed at measuring the
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
been taken to be the average performance of the factory. The sample size in
such studies suffers due to manufacturers' perception of confidentiality
regarding the information on the style specification sheet or operational
breakdown of the styles. The experience of previous research studies using
interview schedules for the collection of extensive data on apparel
manufacturing indicates that only progressive manufacturers participate
and share such data. Therefore, it was decided to go in for ``judgement cum
quota'' sampling. As the study aimed to investigate the factors affecting
apparel productivity in Indian factories, the quota for the sample was
decided on the basis of the share of different regions in the country's apparel
exports. The sample was drawn from shirt and blouse manufacturers among
the 3,000 active garment exporters and 36 manufacturers of national and
regional brands of shirts in the domestic market. The sample design is
explained in Figure 1.
The development of research instrument was achieved by using the results
of previous research studies. An attempt was made to cover variables which
reportedly had had some impact on productivity in the apparel industry as
established in the previous studies. Interview schedules and results of previous
studies were used as a major guideline for developing the interview schedule
for the present study. This structured interview schedule was pre-tested before
finally administering the same.
Primary data were collected from the major apparel manufacturing centres
of India, including Delhi, Mumbai, Bangalore, and Chennai. From the selected
sampling frame 88 identified manufacturers were invited to participate in the
study, out of which 75 manufacturers responded positively. However, most of
these companies were very reluctant to share their productivity data. The
specification sheets were the most difficult to procure from these respondents.
The returned schedules were edited for completedness and accuracy. In 20
cases, additional information/clarification was sought from the manufacturers.
Based on this additional information, 62 interview schedules were finally
selected for analysis.
The interview schedules received and edited were suitably coded to
facilitate data entry. After completion of data entry and random check of all
interview schedules, the master data file was used for basic statistical
JFMM
7,1
16
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
Figure 1.
Sample design
Measure of productivity Valid (n) Mean Minimum Maximum Standard deviation Table I.
Descriptive statistics of
Machine 62 10.03 3.24 19.79 3.36 productivity variables
Labour 62 7.98 2.16 13.62 2.62 (n = 62)
JFMM Factors associated with productivity
7,1 The analysis for identifying the factors associated with productivity had to rely
mainly on correlation in case of parametric variables and ANOVA in case of
non-parametric variables.
The results of simple linear correlation analysis are presented in Table II.
When data was processed using ANOVA, for the variables shown in
18 Table III, and the null hypothesis, i.e. ``there is no significant difference in the
population mean'', was rejected. In other words, the alternative hypothesis
``there was significant difference in the means of populations'' was accepted.
From these results, the following conclusions can be arrived at:
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
21
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
Figure 2.
Proposed productivity
measurement
system (PMS)
(3) Set up operator training cell. Results of the study have clearly
established that factories that had invested in operator training had
higher productivity. It is absolutely essential to start an in-house
operator training program for skill as well as work culture, so that the
operators are made aware of how to achieve world-class performance.
(4) Strengthen quality systems. The results of correlation analysis show
moderate negative correlation between rejection level and productivity.
The average repair and rejection levels reported by the respondents
were quite high. It is important that factories implement a quality
system for the total organisation. The aim should be to eliminate rejects
and to reduce repair levels substantially.
(5) Strategic technology up-grade. Technology level has shown significant
positive correlation with productivity. Factories need to use more
specialised machines in spreading, cutting, sewing, and finishing areas.
It is important that the factories draw up a strategic plan for technology
up-grading. As the funds for investment are expensive in India, every
new investment needs to result in substantial productivity gains.
(6) Introduce productivity measurement systems. After implementing the
above stated recommendations for productivity improvement, the
factory should be ready to implement productivity measurement and
comparison systems. This will help the factory to record, measure and
communicate performance at different levels as well as to provide data
for internal and external benchmarking.
(7) Strengthen production planning and scheduling. As the management
team is likely to be equipped with better techniques, operators are well
trained and productivity measurement systems are put in place, so that
JFMM the factory can concentrate on strengthening production planning and
7,1 scheduling. The aim should be the maximum utilisation of productive
resources of the factory. The factories could also evaluate software
solutions available for this purpose.
(8) Introduce incentive scheme. The productivity gains will not be
sustainable if the workers and staff do not reap the benefits of higher
22 productivity. As the factories are likely to have already gained
substantially through implementation of the recommendations on
productivity improvement, it is the right time to draw up an incentive
plan for the workforce that encourages higher performance and rewards
it suitably.
Downloaded by University of Sri Jayewardenepura At 21:20 03 September 2016 (PT)
Conclusions
Apparel manufacturing is a global industry equally active in developed as well
as developing countries. However, the productivity performance of this
industry in different countries varies drastically. If the apparel industry in
developing countries like India is not able to improve its productivity
performance, the advantage of low labour costs may be nullified. The study has
concluded that the Indian apparel industry has an almost 100 per cent
productivity improvement potential. The factors associated with improved
productivity have also been established. The proposed productivity
measurement system and the strategy for productivity improvement can be
used by the Indian apparel manufacturing industry to draw an improvement
program for their factories.
References
AAMA (1976), Quality and Productivity: Cornerstones of Apparel Manufacturing, American
Apparel Manufacturers Association, Arlington, VA.
BIM (1976), What Is Productivity?, British Institute of Management , Huddersfield.
Dicken, P. (1998), Global Shift, Paul Chapman, London.
Dickerson, K. (1995), Textiles and Apparel in the Global Economy, Prentice Hall, New York, NY.
Hiba, J.C. (1998), Improving Working Conditions and Productivity in the Garment Industry, ILO,
Geneva.
Jones, R.M. (2002), The Apparel Industry, Blackwell Science, Oxford.
Khanna, S.R. (1993), Challenges of Global Competition in the 1990s, Indian Council for Research
on International Economic Relations, New Delhi.
KSA (1998), Sorting Your Sourcing, Kurt Salmon Associates, Dusseldorf.
National Economic Development Office (1969), Attainable Production Targets, HMSO, London.
Rajesh, B. (1997), Productivity Paradigms: An Appraisal of Selected Apparel Products in the Asian
Region, NIFT, Delhi.
Rockhart, J. (1979), ``Chief executives define their own data needs'', Harvard Business Review,
Vol. 57, pp. 81-93.
WIRA (1979), Potential for Increasing Clothing Productivity within the EEC, Wool Industry
Research Association , Leeds.
This article has been cited by:
ByunCollege of Human Sciences, Auburn University, Auburn, Alabama, USA. 2011. Accessing
opportunities in apparel retail sectors in India: Porter's diamond approach. Journal of Fashion Marketing
and Management: An International Journal 15:2, 194-210. [Abstract] [Full Text] [PDF]
6. R.N. JoshiSGGS Institute of Engineering & Technology, Nanded, India S.P. SinghIndian Institute of
Technology, Roorkee, India. 2010. Estimation of total factor productivity in the Indian garment industry.
Journal of Fashion Marketing and Management: An International Journal 14:1, 145-160. [Abstract] [Full
Text] [PDF]
7. Kem Ramdass, Leon PretoriusModular manufacturing experience in the South African clothing industry:
Lessons learned 1206-1214. [CrossRef]
8. Allyson Bailey‐ToddEinstein Noah Restaurant Group, Denver, Colorado, USA Molly EckmanDesign
and Merchandising Department, Colorado State University, Fort Collins, Colorado, USA Kenneth
TremblayDesign and Merchandising Department, Colorado State University, Fort Collins, Colorado,
USA. 2008. Evolution of the Los Angeles County apparel industry. Journal of Fashion Marketing and
Management: An International Journal 12:2, 260-276. [Abstract] [Full Text] [PDF]
9. Y.Y. HuangDepartment of Fashion Design and Management, Tainan Woman's College of Arts and
Technology, Tainan, Taiwan, ROC Bertram TanDepartment of Business Administration, Kun Shan
University of Technology, Tainan, Taiwan, ROC. 2007. Applications of quality function deployment to
apparel design in Taiwan. Journal of Fashion Marketing and Management: An International Journal 11:2,
215-237. [Abstract] [Full Text] [PDF]