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Export Performance of Readymade Garments Sector of

Bangladesh.

Chapter One

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Bangladesh.

1. Origin of The Report

The report title Export performance of readymade garments sector of Bangladesh

has been prepared as a practical fulfillment of MBA Degree in Daffodil

International University. Student are required to undertake and internship program.

For this purpose each of there is attached with or organization. During the internship

a student has to prepare a report on the organization where he is assigned. He has

also to undertake an were of investigation o the organization for detailed study.

The basic purpose of this attachment is to expose the student to the real business

world. This exposure acquaints his with the practices of modern business world.

This exposure is very helpful is seeing for oneself how things move and to find the

gap as well as the similarities between theoretical and practical knowledge.

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Bangladesh.

2.Aim and objectives of the study

The main objectives of this internship report is to provide on Export

performance of readymade garments sector of Bangladesh

To know the export performance of Bangladesh garments in

international market;

To identify the difficulties and barriers faced in the international

market;

To identify possible threats to the Bangladesh garments in the

international market in near future;

To identify the opportunities of the Bangladeshi garments that may be

realized in the international market.

To recommend the measurers needed to be taken for

increasing the export volume.

To Know the current RMG export status of Bangladesh.To full fill the course requirement

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4. Scope of the study

I assigned to do my Internship program in DBL Group this internship

program designed by the school of business Daffodil International

University together practical knowledge about overall activities of the DBL

group at corporate office Dhaka my project was limited in Exports

Performance of Readymade Garments Sector of Bangladesh. How ever I

studied all the main functional areas of the company they are: Admin

department, Marketing Department and other valuable work in garments

factories. I also introduce with companies service polices and program. I

also observed in interaction general manager with other functional

department o the company.

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Bangladesh.

5. Limitations of the study:

From the beginning to end the study has been conducted with the

indentation of making it is a complete and truthful one. However many

problems appeared in the way of conducting the study. During the study it

was not possible to visit the whole area covered by the company although

the financial statements and other information regarding the study have been

consider.

The study considers followings limitations:

All the department of corporate office were not physically visited.

All the concerns personnel of the company have not been

interviewed.

I have been assigned to perform my internship program Head Office of

DBL Group in this office export related work are not practiced. This is

why acquiring practical knowledge about export activities was not

consummated.

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Bangladesh.

Chapter Two

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1. History of the Company (DBL Group).

DBL Group is 100% export oriented knit garments manufacturing

composite unit. the group is in business since 1991. All the products

undergo a stringent quality inspection procedures at each level of

production process. The fabrics are Oeko-Tex certified. the company

increase domestic production for local consumption as well as fro

export. The company fiscal and monetary benefits to attract the investor

for Investment in the industrial sector. particularly benefits to attract

much emphasis for setting up 100% exports oriented products. Which

will contribute to earning/saving the foreign currency of the country.

The garments sector occupies major portion in the economy of

Bangladesh. DBL Group in advantage position having cheap &

sufficient skill alb our & mechanical personnel. The company good and

wide markets un the country as well as worldwide.

2. Product Quality:

In the export market supply of quality product is considered to be prime

determinant for successful marketing of the product. It is generally

believed that the buyers do not sacrifice quality for the sake of price. As

such, quality of the product must be ensured to compete in the export

market. The sponsors of the company to remain always conscious about

the quality, design etc. of fabrics. To produce quality fabrics they are

required to use proper imported and local raw materials, right -type

machinery and to employ experienced and skilled personnel. The quality

control section of the project must be equipped with the required and

necessary quality control equipment so that at every stage of production

quality of the product may be ensured; otherwise, it may difficult for the

project to penetrate their product successfully in the international market

unless quality is not maintained properly.

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Bangladesh.

3. The project purposes and designs

DBL Group setting up a Composite Textile Industries consists of

Knitting unit, Fabric Dyeing Finishing unit and Garments unit. The

project will produce Knitted Fabric, beached Dyed finished Fabrics and

Knitwear apparels like as T-Shirt and polo-Shirt in Garments section.

The project has most modem and sophisticated machinery in the section

of knitting for producing quality fabrics, Most modern and sophisticated

machinery also included in the dyeing finishing unit to produce quality

product. Finally the fabrics will be using in the garments unit to produce

T-Shirt, Polo-shirt and high value knit wear.

4. Product Mix and Production Capacity:

The annual attainable capacity of the proposed project based on three

shift operation for Knitting section & Dyeing and Finishing section and

one shift operation for Garments section per day and working for 300

days in a year.

The annual saleable product of the proposed project based on three-shift

operation per day of 8(eight) hours each shift and working for 300 days

in a year both for Knitting and Dyeing & Finishing unit and Garments

section is 10 hours per day at 100% capacity.

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5. Raw materials

The project will be a Composite unit consisting Knitting unit, Fabricdyeing & Finishing unit and Garments unit. The product of spinning unit

i.e. 2411, 26/1 & 30/1 combed or iMU/Iy.un 1* thf kisif uw material for

knitting unit ,Various kinds of Dyos and Chemicals like as Reactive

Dyes, Salt, Caustic Soda, Soda ash, Wax, Hydrogen Per-Oxide,

Detergent, Softener agent etc will be the basic raw material for its fabric

dyeing and Finishing unit, which will be imported. The Dyed and

Bleached fabrics are the basic raw materials of its Garments unit, which

will be received from its dyeing and finishing unit.

6. Conclusion & Recommendation:

From the detail analysis it seems that the DBL Group technically

feasible, economically & commercially rewarding and financially viable.

After implementation of the project will generate direct employment of .

25& persons. AI the above measures of investment feasibility of the

project indicate that it will be able to generate sufficient revenue from

its operation to pay back debt obligation and annual operational

expenses. The project is financially desirable & suitable for Bank

Financing.

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Bangladesh.

7.Identifying about some Instrument and some information be as follows

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Bangladesh.

8.Dyeing & Finishing

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Bangladesh.

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9. Management & Organization:

The over all management of the company will be vested with the Board 4f Directors.

The Board of Directors will be formulated company's policies & guide lines for its day

to day business operations . The Managing Director will be the executive head who will

look after the business affairs and other logistic supports of the economy. However

Managing Director will be assisted by the managerial and technical personnel who will

be the directors of the company.

ORGANIZATION CHART:

14

Chairman

Managing DirectorsOperative Director Finance Director

Production Manager

ProductionPersonnel

MaintenancePersonnel

Marketing Manager

Assistant Manager

Executive Marketing

Commercial Manager

Executive Commercial

MangerAccounts

Manager

Assistant Manager

Executive

Junior Executive

Trainee

Mangercommercial

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Chapter Three

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1. Introduction

The hundred percent export-oriented RMG industries have experienced

phenomenal growth during the last 15 years. Within a very short period of

time, it has attained great importance in terms of its contribution to GDP,

foreign exchange earnings and employment and also as a vehicle of social

changes. The export earning data of Bangladesh shows that in 1984-85,

ready-made garment sector earned 12.39 %( $116 million) of the total export.

This was raised to 36.46 %( $471 million) in 1989-90. This share rapidly

went up to 53.36 %( $1064 million) in 1991-92. Surprisingly, the share

showed no increase for the last three years. Bangladesh garments products are

facing various barriers and difficulties in the international market. Garments'

contribution to the total export earning remained constant at around 52% for

the years (52.84%) in 1994-95 and 52.63% in 1995-96. For the year 2004-05

the total amount of RMG export was ($5689.09 million). This is the current

situation of RMG export from Bangladesh.

2. Statement of Research Problem:

The first ready-made garment factories in Bangladesh aimed at the export

market were opened in the late 1970s by investors from other Asian countries

whose exports had been restrained by quotas imposed by importing nations.

By the mid-1980s, the ready-made garment industry had become a strong

export earner. Garment exports brought receipts of only US$3 million in FY

1981, but by 1984 exports had risen to US$32 million, and the following year

revenue soared to US$116 million. For FY 1985 and FY 1986, ready-made

garments were the second biggest foreign exchange earner for Bangladesh

after jute.

The surge in Bangladeshi exports eventually caused a reaction among some

industrial nations. Canada, the European Economic Community, and the

United States expressed concern that inexpensive Bangladeshi garments were

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flooding their markets. In 1985, after a series of notices as called for by

multilateral agreements, the United States--which was the destination of about

25 percent of Bangladesh's garment exports--began imposing quotas onBangladeshi garments, one category at a time.

Bangladeshi manufacturers, working with the government, organized with

remarkable speed and efficiency to adapt to changing conditions. They

policed themselves to stay within quotas, allocating production quotas

according to equitable criteria, and began diversifying their production into

categories where there were not yet quotas: for example, cotton trousers,

knitwear, dresses, and gloves. After a period of adjustment, during which

some of the least well-established firms closed and workers were laid off, the

industry began stabilizing, and growth continued at a more moderate pace.

Exports in FY 1986 rose another 14 percent, to US$131 million, and

prospects were good for continued growth at about that rate.

The ready-made garment industry in Bangladesh is not the outgrowth of

traditional economic activities but emerged from economic opportunities

perceived by the private sector in the late 1970s. Frustrated by quotas

imposed by importing nations, such as the United States, entrepreneurs and

managers from other Asian countries set up factories in Bangladesh,

benefiting from even lower labor costs than in their home countries, which

offset the additional costs of importing all materials to Bangladesh.

Bangladesh-origin products met quality standards of customers in North

America and Western Europe, and prices were satisfactory. Business

flourished right from the start; many owners made back their entire capital

investment within a year or two and thereafter continued to realize great

profits. Some 85 percent of Bangladeshi production was sold to North

American customers, and virtually overnight Bangladesh became become

the sixth largest supplier to the North American market.

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After foreign businesses began building a ready-made garment industry,

Bangladeshi capitalists appeared, and a veritable rush of them began to

organize companies in Dhaka, Chittagong, and smaller towns, where basicgarments--men's and boys' cotton shirts, women's and girls' blouses, shorts,

and baby clothes--were cut and assembled, packed, and shipped to

customers overseas (mostly in the United States). With virtually no

government regulation, the number of firms proliferated; no definitive count

was available, but there were probably more than 400 firms by 1985, when

the boom was peaking.

After just a few years, the ready-made garment industry employed more than

20,00000 people. According to some estimates, about 80 percent were

women, never previously in the industrial work force. Many of them were

woefully underpaid and worked under harsh conditions. The net benefit to

the Bangladeshi economy was only a fraction of export receipts, since

virtually all materials used in garment manufacture were imported;

practically all the value added in Bangladesh was from labor.

Country's RMG producers have been steadily moving towards high value

sophisticated items like high quality suits, jackets, branded jeans items,

embroidered ladies' wear etc. They are now producing a wide range of

garments items and have expanded their market worldwide. Increasing at the

rate of 27% per year over the . last several years, utilizing quota and

diversifying their products into non-quota items, the country presently holds

6th largest apparel exporter status in the USA while 51h largest in the

European Union (EU).

Japan has been a very quality conscious market in the world. Bangladesh

very recently has proved itself to be prospective in RMG export to Japan

also. In 199495, export of RMG to Japan from Bangladesh jumped up to

US$ 5.61 million or by 168% of the previous years. It shows that the apparel

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producers are gradually catching up with quality requirement of the buyers

in the international market.

WE followed by EU led the major share of the country's RMG export

market from the very beginning. But during 1995, EU overtook the US.

Among countries in EU, Germany has been topping the list over last several

years followed by UK, France, Italy and The Netherlands. In 1995, Germany

imported apparels worth US$ 317.86 million against US$ 245.39 million in

1994. Only Shirts and T-shirts that Germany imported in 1995 were worth

US$ 202.36 million. As single country, however, US have been the highest

apparel importing country for Bangladesh.

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3.Ready Made Garments Export Condition in Brief:

The Bangladesh Garment Manufacturers and Exporters Association

(BGMEA) is the only recognized trade body that represents the export oriented

garment manufacturers and exporters of the country. Struck by the 70s' political

turmoil in Sri Lanka and price hike in other Asian countries, garment buyers in the

international markets explored the potential of the newly born Bangladesh.

Fortunately, with the timely policy support from the government, entrepreneur's

talent and efforts as well as the labor of the work force, the ready-made garment

(RMG) industry could impressively succeed and the buyers got confidence in it.

Now its development rate is, on an average, 20% per annum. With a huge supply

of cost-effective labor force, country's economic factors are in favor of

development in this relatively low capital and high labor intensive industry.

Starting in late 70s as a small nontraditional sector of export. Ready-made

Garment (RMG) emerged as a promising export earning sector of the country by

the year 1983. Bangladesh at that time lacked a pectoral trade body, non-

government in nature, free from traditional bureaucracy, to help the sector to boost

up the country's foreign exchange earnings. Entrepreneurs and the government in

the post independence years felt and emphasized the urgent need to develop non-

traditional items of export for helping the struggling economy. As a result, 1977

marked the birth of Bangladesh Garment Manufacturers and Exporters'

Association (BGMEA). Since its humble inception with only nineteen (19)

garment manufacturers and exporters, BGMEA has grown into a strong anddynamic body. Today it proudly declares registered membership of more than

2700 garment manufacturers and exporters. Of the total 2700 units, about 1932

garment factories. are located in Dhaka while about 155 and 415 factories are

located in Naryanganj and Chittagong respectively. Factories are located in Dhaka

while about 155 and 415 factories are located in Naryanganj and Chittagong

respectively. These 2700 garment factories having about 1.5 million workforces is

earning 73% of the country's total foreign currency. About 15 million people are

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directly dependent on this sector. The growth of Freight Transport, Bank,

Insurance, hotel etc. in the country are the gift of the garment industry. In a

nutshell, the garment industry has become the pivot of the country's economy. Thefundamental objective of BGMEA, however, is to establish a healthy business

environment for a close and mutually beneficial relationship between the

manufacturers, exporters and importers in the process ensuring a steady growth in

the foreign exchange earnings of the country. To this end, BGMEA has been

playing a very strong role to lead the industry in concurrence with the government.

The following are the regular activities of BGMEA for its members, owners,

apparel buyers and other partners.

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4.Bangladesh: Special Feature

The competitive strength of a firm or a country in the market depends on its

specific comparative advantage(s) which its competitors do not have. A particular

uniqueness of a supplier shapes up its strategic advantage profile. In case of

Bangladesh, this uniqueness is the unlimited availability of unusually cheap but

usable labour. It is the abundant supply of the comparatively cheap labor that

stands out as the significant strength. The RMG industry by its nature, is a low

technology but labour intensive industry. The workers can be employed at

very low wages, not only in comparison with other competitor countries, but

also in comparison with other domestic industries in Bangladesh. In

domestic market as well, the wages of the workers of the RMG industry

happen to be the lowest.

The External Threats

Bangladesh has successfully established a remarkable presence in the world

markets, particularly in the US and EU markets. If one analyses its external

threats and opportunity profile, one finds that its powerful competitors will

try to influence the trading environment in such a way as will create hurdles

for Bangladesh to retain or improve its competitive edge: This hurdle can

take numerous forms. Broadly, these are discussed in two categories: (1)

Phasing out of MFA and (2) Other non-tariff barriers.

(1) Phasing Out of MFA

It seems that the phenomenal growth of RMG exports from Bangladesh has

become a threat to its powerful competitors. Naturally, they (the

competitors) are preparing to snatch away the markets from Bangladesh with

aggressive and "innovative" business strategies. They will certainly take

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advantages of the new provisions included in the final Acts of Uruguay

Round. One such provision is the phasing out of the MFA.

Before we can answer the question whether the phasing out of MFA will bea threat to Bangladesh, we need to understand the origin and meaning of

MFA (Multifibre Agreement). The GATT did not originally include textile

and apparel industries in its principles of MFN (Most Favoured Nation). The

Uruguay Round (UR) decided to integrate textile and RMG industries into

GATT system. As is well known, GATT/WTO prohibits not only unjustified

tariff barriers but all forms of non-tariff barriers including imposition of

"quota". In sixties, while GATT principles prohibited discrimination

between the trading partners, it allowed certain exceptions to GATT

principles on the ground of "fairness". Such an exception is WA. To achieve

this goal, a special provision known as MFA was instituted. Under the MFA

provisions, GATT allowed the USA and other importers of RMG to impose

quota restrictions. The MFA has been in place since 1974. Later on when

trade liberalization policy started riding high, the arguments for phasing out

the MFA were put foreword by those countries which were hurt by it.

(2) Other Non-Tariff Barriers

The final Acts of the Uruguay round (UR) negotiations expanded, integrated

and strengthened the GATT principles of reducing / eliminating all forms of

trade barriers with a view to increase world trade. It is easier to identify and

remove trade restrictive tariff barriers because they take so many and such

subtle forms that . multilateral negotiators face more disagreement than

agreement on their definitions. For example, customs evaluation procedures

suitable in a particular country may be interpreted as deliberately created

non-tariff barriers by its trading partners. Similarly, there is a scope for

"misinterpretations" of subsidies given to exporters by the respective

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government. The child labor, environmental and human right issues are also

susceptible to similar "misinterpretation.

Quota System:For decades the world's garment trade has been governed by a system of

quotas. It limited the amount efficient countries like China could export to

the big markets of the United States and Europe. The original intention was

to protect the garment industries in the West. But the effect was to guarantee

less developed countries like Bangladesh a slice of the trade. Quotas were

abolished from 1 January 2005. Retailers are now free to buy from whatever

country can make garments for the lowest price. It could mean cheaper

clothes for consumers but the pain will be felt in slums in the developing

world.

Competitor

Competition has become intense in the garment industry at present. Garment

industry is emerging rapidly in Taiwan, Hong Kong, Singapore and Korea in

Asia. Thailand, Malaysia, Indonesia, Philippines and Sri Lanka have found

the garment industry more attractive to develop their economy from 70'sdecade. Vietnam has become a potential entrant in garment industry

throughout the world.

Threat from Various Regional Organizations (Such as NAFTA, EEC, EFTA,

etc.) The trend of the modern world is regionalism to strengthen the

economy of the member countries through co-operation. North American

Free Trade Association has been signed recently and the main initiator of

NAFTA is the USA, who is the main buyer of garment from Bangladesh.

According to the treaty of NAFTA, USA will invest its domestic resources

to develop their economy by using 60% of their own raw materials through

utilizing the low cost labor of Mexico. So, it is a potential threat to the

garment industry of Bangladesh. On the other hand, EC countries have

already declared a single currency for European Common Market called

ECU (European Currency Unit) to protect the interest of the member

countries through cooperation. This sort of protectionism is great threat to

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the garment industry of Bangladesh, because Germany, Britain, Denmark,

Norway, Belgium, Italy, etc. are buyers of the garment of Bangladesh.

Scarcity of Raw Materials:

There is no alternative of ample supply of raw materials in order to become

selfsufficient in any industry. The raw materials of the garment industry of

Bangladesh is foreign dependent. Bangladesh has to import raw materials of

garments from abroad in order to process it in Bangladesh. About 70% of

garment export income has to be spent for the raw materials. Moreover, the

export and import policy of Bangladesh is very weak. So, the scarcity of raw

materials for the garment industry' in Bangladesh is a great threat.

Political Instability:

Bangladesh is not a stable country politically. Political instability is a great

threat for any industry of our country. Frequent strikes and hartals are great

obstacles for the growth of any industry. The production cost increases and

productivity decreases because of frequent hartals and strikes. Garment

producers cannot keep their contract with buyers because of hartals and

strikes. Hartals and strikes have become a common phenomenon of

Bangladesh.

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5.Bangladesh economy to grow at 6 percent despite key challenges: IMF

Bangladeshs economy is expected to grow six percent next fiscal year

despite the abolition of quotas for textile exports that was predicted to cause

massive job losses. The economy grew 5.5 percent in the fiscal year ended

June 30. The IMF forecast is in line with a finance ministry budget estimate

in June that said the economy was recovering from devastating floods last

summer and had coped well in textile exports deposit the loss of quotas that

opened up competition with larger rivals Such as China and India.

The international textile quota system, known as the Multifibre

Arrangement, was abolished at the end of December 2004 prompting

predictions that as many as one million jobs would be lost in Bangladesh.

In the year to June 2004, Bangladesh exported goods worth 7.56 billion

dollars with textiles accounting for 75 percent. Looking forward, (the IMF)

underscored that Bangladesh faces the key challenges of accelerating growth

and maintaining macroeconomic stability while overcoming the potentially

significant impact of the MFA phase-out the IMF said.

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6. The Conference of LDCs

With the phasing out of Multi-Fibre Agreement (MFA), the readymade

garment industries of the countries, which have weak textile base, are feared

to be in the brink of an uneven challenge. There have been widespread

concerns by the exporters and experts about the possible fate of the countries

garment exports, which, the experts think can only get special support if

more preferential access to the US market, the biggest destination of local

RMG products, could be achieved.

With that aim in view, the BGMEA took the pioneering role in placing a

trade bill in the US congress, which, if passed into law, will benefit 14

LDCs including

Bangladesh. To strengthen the efforts, the association has taken a landmark

decision to hold a conference of the stakeholder LDCs in Dhaka in June to

garner their support in favor of the bill.

Meanwhile, tremendous response has been received from the invitees. It is

indeed a vivid demonstration of the wisdom of the current BGMEA

leadership, which is expected to be culminated into having a joint

declaration participant at the end of the conference.

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7. The products of LDCs: low-price garments in a higher-quality market

In clothing as in cotton fabrics, the LDCs tend to focus on exporting

standard products such as T-shirts, men's shirts, and woven and printedfabrics, for which price is the main determinant of success and in-depth

knowledge of fashion and design trends is not essential. However, in recent

years a change has been taking place in the developed markets, away from

cheap imports towards better-finished, higher-quality casual fashion and

more individual clothing, the opposite of LDC garment exports.

Nevertheless, Bangladesh has a number of 'champion' export products (i.e.,

achieving high growth in a dynamically expanding market), particularly

women's knitwear. Haiti, another example of a textile-exporting LDC, has

been doingvery well with exports of cotton T-shirts and women's clothing.

Its garment exporters are increasingly exporting sophisticated items like

high-quality suits, jackets and branded items. This has helped them to

penetrate Japan's extremely quality conscious market. Bangladesh has

shown that it is possible to move successfully up the value chain by

exporting finished products. In 1999, it was by far the largest single LDC

exporter of finished, woven fabrics with 85% cotton or more, weighing up to

200 g/m2.

Govt trying to overcome problems in RMG sector

Speakers at a seminar said the government is making all out efforts to

overcome the problems of garments sector and trying for duty free and quota

free access of Bangladeshi goods to the US and European markets.

The sector is the main foreign currency earner, which earned 70 per cent of

the country's total exports last year. EPB Vice President said that

Bangladesh has got duty free access to Australia from 1st July. It is the 4th

country to give duty free opportunity for Bangladesh products. Earlier

Canada, Japan and Norway have given duty and quota free access of

Bangladeshi products.

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8. Bangladesh made faster economic growth

The World Bank on Sunday said Bangladesh made faster economic growth

in last two financial years and predicted that the projected 5.5 per cent

growth of this year's gross domestic product (GDP) was `very likely' to be

achieved owing to good rice harvests, reports BSS. The export performance

also marked a steady progress with 16.2 percent increase in first seven

months of the current fiscal. The export of ready made garments (RMG)- both

woven and knitwear-has picked up due to increase in global demand and the

consolidation process in the industry, which earns over 70 per cent export

earnings.

9. The Fastest Growing Export Sector of The Country

Starting in late seventies, the apparel industry of Bangladesh now accounts for

over 64% of the country's total export earning. Country's apparel export rose toUS$2628 million in 1996 from a mere US$6 million in 1981. To about 30

countries around the world, Bangladesh presently exports ready-made

garments, with over 45% to USA, 50% to the countries in EU and 3% to Canda

and rest to the other countries of the world. Country's apparel export has been

growing on an average at the rate of 25% for last several years. The country,

last year ranked 6th larget apparel exporter to the USA the EU.

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Bangladesh Garment Export

There are about 2500 export oriented ready-made garment industry inBangladesh those are clustered over mainly Dhaka and Chittagong. Such

distribution offers buyers advantage to choose the right manufacturers and

exporters, throuhout the year, with minimum effort.

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Those are the findings that find after analyzing the whole situation.

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10. Statement of the current Export data of Readymade Garments of

Bangladesh.

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Chapter Four Learning part

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1. Yarn Manufacturing Process

Textile mills purchase cotton and receive the bales from gin yards or cotton

warehouses. These mills start with raw bales of cotton and process them in

stage until they produce yarn (fibers twisted into threads used in weaving or

knitting) or cloth (fabric or material constructed from weaving or knitting).

The first stage is in the opening room. Here, bales are opened and laid in a line

on the floor, side by side, near a cotton opening machine. This machine travels

along the line of opened bales, puling fibers to be sent to a mixing machine and

them on to the carding system.

Carding is the process of pulling the fibers into parallel alignment to form a

thin web. High speed electronic equipment with wire toothed rollers perform

this task. The web of fibers is eventually condensed into a continues, untwisted,

rope-like strand called a silver. These silvers then continue to a combing

machine. Here, the fibers shorter than half-inch and impurities are removedfrom the cotton.

This process makes the silver smoother so more uniform yarns can be

produced. The drawing or pulling of this sliver is next. Cotton trivia khaki is

derived from a Hindu word that means dust color. Originally, khaki referred

to a dull yellow-brown cotton or wool uniform fabric used for its camouflage

effect.

The sliver is drawn out to a thinner strand and given a slight twist to improve

strength, then wound on bobbins (spools wound with the thread like product for

storage). Having completed this process. It is now called roving. The roving

bobbins are now ready for the spinning process.

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Spinning is the last process in yarn manufacturing. Todays mills draw and

twist the roving into yearn and place it on bobbins. They do this quite

efficiently. A large, modern mill can produce enough yarn of thread in 30 daysto wrap around the earth 23000 times or go to and return from the moon 235

times. With the use of automatic winding, the yarn bobbins are transferred to

large bobbins called cheese cones can be stored until they are needed in the

weaving process.

The weaving process uses yarn that, depending on how it lies in the woven

goods. These yarn may now be either a warp or a weft yam. Warp refers to

yarns that run lengthwise in woven goods. In preparation of warp yarns for

weaving, hundreds of yarn strands are wound from cheese cones onto a large

warp beam. Yearns on this beam are then coated with a sizing compound (a

starch mixture) to add strength for weaving. The sized yarns are then wound

onto a loom beam that will be placed on the loom (a machine used to interlace

yarns to from cloth). Weft is the yarn that runs crosswise in woven goods and

may be referred to as filling yarn. Sizing is not placed on weft because

flexibility is needed in the weaving process. In todays most modern mills, the

weft is fed into the loom from cheese cones with air-jets at such a high speed

that its movement cannot be seen.

The woven cloth from the loom, called greign or grey , is whitish but has a

natural yellow tint. This cloth is further treated by various means to improve its

appearance and feel, then either bleached, dyed or printed to produce the

fabrics used in various products seen on store shelves.

There are three basic weaves that are used. The plain weave, the most common,

is produced by passing the weft yarn over and under each warp yarn,

alternating each row. This is used for cotton print cloth, sheeting, muslin and

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more. The twill weave is produced by interlacing yarns in an angle to form

straight, diagonal ridges across the fabric. The satin weave, has a surface that

consists mostly or warp yarn which is passed over and under all but one weftyarn that intersects in a regular or irregular formatting, not a straight line.

This weave produces a fabric with a smooth surface. It is used for upholstery,

home decorating and fashionable apparel.

Knitting is another method of turning yarn into fabric. Knit fabric is

constructed of yarns made into loops (stitches) which are linked together by the

use of needles. There are two basic types of knitted fabric. The weft knit fabrics

are made with yarns forming loops the width of the fabric on a circular

machine, producing jersey knit used in T-shirts and underwear. The warp knit

fabrics are produced by feeding yarns to form loops in a lengthwise direction

and are used for tricot fabrics and cotton lace. Knitted fabrics are softer and

more flexible than woven fabrics. Making them ideal for sweaters, active

sportswear and hosiery.

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2. Fabrics Manufacturers

Knitted Fabric

Knitting is one of the ways of turning thread or yarn into clothes. Knitted fabric

completely consists of horizontal parallel courses (crosswise) or yarn. These

courses are joined to each other by interlocking loops where a short loop of one

course of the yarn is wrapped over the bight of another course.

Knitted fabric is obtained either by hand knitting process or then by machine.

In hand knitting process, a base series of twisted loops of yarn are made on a

knitting needle before starting the process. A second needle is then used to

reach through each loop in succession to snag a bight of yarn and pull a length

back through the loop. Knitting by machine use a different mechanical system

producing nearly identical results.

Knitted fabric composites show higher impact tolerance compared to thetraditional composites or even to woven fabric composites. It is believed that

the hand knitting originated among the nomads of the Arabian Peninsula about

1000 BC.

Types o knitted fabrics:

Weft knitted fabric-It is either made by hand or machine by looping together

the lengths of the yearn. This supports the fabric to become stretchy and

comfortable. Weft-knitted fabrics are used in socks. T-shirts an jumpers.

Warp knitted fabric- It is made by machine only. The loops, in this kind of

fabrics interlock along the length of the fabric. It is only slightly stretchy and it

do not ladders. These are used as swimwear, underwear etc.

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Advantages of Knit Wears:

Because of casual and soft in nature as well as inherent good properties suchas hygienic properties, fashionable design and color, knit wears have

become the popular wear all over the world. Knit wears are informal but

fashionable usually with short sleeves. Knit wears are commonly made of

knitted fabrics of single jersey, Ribs, Interlock, etc due to the specifications

in raw materials by using lower count of yam, construction of fabrics and

stitching. Knit wears possess certain properties which are essential for good

apparels; some special advantages of knitted-wears are given below:

1) Knit garment products are softer and more comfortable;

2) Knit wears/garments are usually used as underwear

garments i.e. used for soft skin abrasion.

3) Usually lower count of yam is used for knitting fabrics.

So, knitwear has more socking capability.

4) More profitable production can be made due to lower

project cost and cheaper management cost.

5) Knitting wears can be handled more easily while using

and washing. ,

6) Its market price is comparatively cheaper.

Manufacturing process:

For setting up Composite Industries consists of Knitting unit, Fabric Dyeing Finishing

unit and Garments unit. The product of one unit will be the raw material of other unit:

The sequential process from yam manufacture to Garments product may

be described as follows!

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For Knitting Unit:

Knitting machine is various types where various design produces. Fabrics wili also be

produce in the circular -Knitting machines by altering some attachments mainly

changing of camas. Rib Knitting and Interlock (double Knitting) fabrics will be

produces in the Rib circular and Interlock Knitting machine.

Flat Knitting fabrics for collar and cuff will be 'produced in the flat Knitting machine.

After the Knit fabrics is produced, it is inspected in running condition while passing

over a table of the inspection machine. The technology involved in Knitted fabrics is

fairly simple which may be seen in the following flow process chart:

Process Flow Chart

Yarn storing in cone form

Rib Knitting

Circular Knitting

Face side inside turning of the knitted fabrics

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3. Fabric Dyeing and Finishing Unit:

The technology involved in dyeing finishing of Knitted fabrics may be seen as below;

Face side inside

Turing of the Knitted

fabrics

Scouring /Bleaching

Washing

Bleached fabric(white)

Dying Was king

Ballooning & Squeezing/Hydro

Extractor

Drying and heat setting stuttering

Calendaring/Softening

Compacting & Shrinkage Controlling

Inspection

Folding & baling

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Garments Making;

The operation process with two outputs i.e. T-shirts and Polo shirts are pre-

sewing and finishing. A typical process flow-chart for Garments making isshown below: Process Flow Chart for Garments Making

Fabric

Fabric lying on Layers & clipping

Cutting of individual parts as per approved pattern

Sorting & Bundling sizeable for mass sewing

Sewing of collar, cuff Sleeve to shirt

Sewing of size label, washing instruction, Brand label

Button holding & stitching (in case of Polo-shirt)

Loose thread cutting/inspection Ironing (Finishing)

Folding

Packing in carton

Ready for Export

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4. Production flowchart

Sampling

Price Officer to buyer

Order confirmation

Procurement of raw materials

Stores

Knitting Machines

Grey Fabric quality control

Grey Fabric quality control

Grey Fabric Batch room

Dyeing floor

Dyeing winch

Water squeezer

Dryer

Compactor

Finish Fabric quality controlFabric stores

Cutting floor

Cutting quality control

Sewing input

Sewing output QC Table

Ironing

Folding/ Hangar

Poly

Assortment

Carton

Internal Inspection

Final Inspection by buyer

Shipment

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5. Garments Quality control flow chart

Received finish fabric

Checking finish fabric

Marker

Laying

Cutting

Numbering

Checking

Bounding

Cutting Quality Audit

Input

Enpost Measurement checking

Table inspection

Alter / Rectification

Sewing quality audit

IronEnpost checking for finishing

Qualit audit for workmanship

Basic Measurement check

Folding

Poly/ Hangar

Metal Detector checking

Carton

Carton quality audit

Internal final inspection

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6. Garments Planning:

To establish a garments factory the location choice is an important factor

for correct manufacturing, worker management and proper transport system.

The following are some of the factors which will influence the choice of

location:

Availability of worker.

Availability of housing facility ( In Bangladeshi system it is not

provided by any garments authority)

Availability of staff amenities.

Availability of transport.

Availability of materials.

Availability of cover-van parking space.

Adequacy of circulation.Availability of services.

Gas

Electricity

Water

Drainage

Disposal of waste

Suitability of land and climate.

Local building and planning regulation.

Safety requirements.

Site cost.

Political situation.

Special grants.

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According to the place and types of manufacturers goods the building shape

has been Chosen. Here I mentioned both the advantages of single and multi-

story building. It depends on the size of the garments factory, which is prefermost.

7. Benefit of team in garments:

Increase the group activities in production.

Makes a competition among the team worker.

Workers get satisfaction to work.

Instrumental benefits.

8. Control

Control is a regulation of organizational activities so that some targeted

elements of performance remains within acceptable limits.

Purposes of control:

Adapting to environmental changes.

Limiting the accumulation of errors.

Coping with organizational completes.

Minimizing cost.

Keeping the organizational work on track (according to

plan)

In garments sector the control is divided in three sections.

Production control.

Overall/Operational control.

Financial control

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Overall/Operational control:

Preliminary control

Screening controlPost action control

Preliminary control:

Preliminary control concentrates on the resources-financial, material,

and human and information-that the organization brings in form the

environment. Preliminary control attempts to monitor the quality or quantity

of these resources before they enter the organization.

Screening control:

Screening control focus on meeting standards for products or service

quality or quantity during the actual transformation itself. Screening control

relies heavily on feedback process.

Post action control:

Post action control focus on the outputs of the garments after the

transformation process is complete. Coming's old system of Post action

control-final inspection after the product is completed. Although corning

abandoned its Post action control system, this still may be an effective method

of control, primarily if a product can be manufactured in only one or two

steps or if the service is fairly simple and routine. Although Post action

control alone. may not be as effective as preliminary or screening control, it

can provide management with information for future planning.

Financial control:

Financial Control is the control of financial resources as they flow into

the garments (i.e., revenues, investments), are held by the garments (i.e.,

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working capital, retained earning), and flow out of the garments (i.e., pay

expenses). Business must manage their finances so that revenues are

sufficient to cover costs and still return a profit to the firm's owners.

9. Prepare a garments budget:

Budget is a numerical expression. A good budget can provide a good

exported or productive garment. Without budget a garments can't run

correctly. Only by the help of a good budget the goals can come out. Budget

helps to take correct decision and divers the organization properly in right

way. Budget also, shows the capacity of garments in productive market. Only

a suitable and acceptable budget can run the garments correctly. For this

reason budget is essential for the garments.

The processes of preparing budget in garments are as follows:

Submission of budget request by the units to division head.

Integration of unit budget and consolidated into division budget.

Forwarding of division budget to budget committee.

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Chapter Five

Conclusion & Recommendation

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1. Conclusion and Recommendation

In order to sustain the smooth growth and development of the garmentindustry of Bangladesh, Government should play a key role to offer a good

export policy. Otherwise the production, employment, earning of foreign

currency and economic development of the country will be affected

seriously. Some recommendations have been offered to face the problems of

the garment industry of Bangladesh.

Regarding the problem of RMG sector I've identified some

recommendation for the betterment of this sector. The

recommendations are as follows:

The Government of Bangladesh should play a key role for the

expansion of the market of garment by diversified items for

manufacture and export. It is very important fact that there are many

items in the RMG product lines which Bangladeshi entrepreneurs

have not yet started production. Leather items, life jackets, gloves,

bags etc. are among few such items. Among other items are umbrella,

nylon school bags and jackets, ice sport kits and wears, staffed toys,

high competitive market fashion garments are examples. There are

numerous such items not yet touched by our entrepreneurs.

All out efforts would be made and steps taken for production and

export of high priced readymade garments in the light of the

prevailing market demand.Immediate steps shall be taken to establish a Fashion Institute

pending establishment of the Fashion Institute measures will be taken,

under special arrangements, to extend expert services to match the

actual demand. Liberal credit may be considered for capacity building

and hiring technology for producer of high quality garments.

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Product-Specific decisions: Readymade Garments

Provisions have been made for the exporters of readymade garments to

retain in their respective foreign currency accounts the portion of theirexport earnings required for meeting the expenses on importing fabrics and

other accessories through back-to-back letter of credit. The exporters that

way shall be saved from incurring losses by first converting their export

earnings to Taka and then reconverting the same to foreign exchange for

payment of import bills on raw materials.

For making hand-woven sweaters of natural and synthetic wool imported

under customs and permission would be accorded to take up such wool

outside the bonded area, provided the concerned firm furnishes a bank

guarantee for equivalent amount of customs duty leviable on such raw

materials.

Labor Productivity Improvement.

However, it is to be noted that the lower material procurement cost may not

be enough for Bangladesh to maintain its competitive edge in international

markets. Bangladesh must increase productivity, which is lower than many

of its competitors. It is true that wages are low in Bangladesh, but it does not

necessarily mean that relatively low wages automatically lead to higher

productivity. Wages are only one of the determinants of labor productivity.

Time required by the

workers to perform a task is another important determinant. Available

efficiencies indicate that Bangladeshi workers are not as those of Hong

Kong, South Korea and Sri Lanka. The workers' skills and supervisors'

managerial efficiency are higher in those countries than in Bangladesh. In

addition, those countries use the latest technology, for example, computerize

sewing machines, design facilities, etc. but Bangladesh uses relatively older

technology.

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Other Strategic Implications

There are potential problems with supplies and financing. Aconglomeration or a strategic alliance of domestic firms or with

foreign firms or both is the only feasible solution. This tie-up-

marketing will ensure long-term business interest to the domestic

producers.

Most of the exporters do not provide good post sales services or are

bent on relational marketing. The exporters and entrepreneurs have to

take measures in this context.

The exporters are willing to form joint ventures, but they are more

keen to get financial benefits than technological benefits. Exporters

should be taught or given necessary counselling in taking the

advantage of technology transfer. EPB can take further progressive

role and arrange training, workshop, interviews and field works in

various capacities.

Import of samples for each category of garments:

At present, facility exists for duty free import of 20 pieces of samples for

each category of garments subject to a maximum of 100 pieces. Imported

samples are, however, subject to mutilation at the customs paid.

Rationalizing the rate of value addition:

It has been found that keeping the rate of value addition flexible is

congenial for the growth of the country's export trade. Therefore a

Standing Committee will be formed for rationalizing the existing

rates of value addition for all commodities including readymade

garments.

When a garment export unit relies exclusively on locally procured

cotton and accessories through back-to-back L/c the maximum

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amount of back-to-back L/C in case of knitwear unit would be equal

to the value of the master L/C.

Import of grey clothes:With a view to expanding the base of backward linkage industries,

permission is being accorded for import of grey clothes, through usual

procedure for use in the export industries or for direct export against specific

export orders. So long this facility used to be given only to the dyeing,

printing and finishing factories. Since value addition in the readymade

garments sector did not take place up to its potentialities inspite of this

facility the government has allowed the exporters of readymade garments to

import grey clothes.

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