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Quality Improvement Program Implementation by RBC
The Client
The client is an Okhla based manufacturer, exporting to the European Market. The company is managed by the owner with the help of experienced staff in family like manner. The company deals with small order quantities and high style variation. Stitching and embroidery is totally outsourced. The factory works with about 15-20 fabrication (stitching) units.
The factory enjoyed superior supplier rating form its customers in terms of product development, product quality and timely delivery. But the management also knew that the cost of quality of the factory being quite high, substantial profit was being lost as rework and repair costs. The client took part in the Quality Improvement Program offered by RBC to arrest this drain on their earnings.
The Challenge
The management of the company though was completely convinced of RBC's QIP methodology and its value, was unsure about the program implementation challenges in high style, small order quantity environment. Bringing quality improvement in subcontracted manufacturing is considered difficult compared to in-house manufacturing. Since all stitching in this factory is outsourced, the challenge was to convince the subcontractors that they could and needed to produce better quality apparel without expecting increase in sewing charges. Most sub-contractors were very small entrepreneurs and were relatively less educated. As a result they could not be expected to follow extensive written documentation.
Solution
The three month long implementation involved:
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Gap Analysis to asses the existing performance, system and improvement potential |
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Intensive training of client's team in Quality Management philosophy and problem solving tools |
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Training on identification of internal customers and institutionalizing feedback mechanism |
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Confidence building session with stitching subcontractors how right first time quality is a win-win preposition for them as well as the company |
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Implementation of RBC's Quality Management Information System |
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Handholding during problem solving and implementation of improvement initiatives |
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Refining and establishing procedures |
Key Results
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The Defect per Hundred Units of six main manufacturing contractors reduced on average by 40.76%. |
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Stains related Defects per Hundred Units (DHU) at final finishing stage came down by 63% from 43% to 17%. |
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The labor productivity of finishing section has more than doubled. The factory has been able to achieve record output of 2100 pieces per day as against average output of 800 pieces as result of Quality improvement in all the areas. |
Business Impact
In the words of the owner of the company: "Main change has come in the thinking of the team. Earlier everyone was working in isolation with closed mind, now the doors and windows have opened. Now everybody's confidence in themselves and others has improved."
As certified by finance department-
Chemicals cost for stain removing reduced by 74% from Rs. 1.38/pc to Re. 0.50/pc.
Electricity, diesel & water expenses reduced by 40.62% from Rs. 6.40/pc to Rs. 3.80/pc
There is also reduction in excess cutting, stitching and embroidery.
ROI has been fantastic. The project has paid back during the implementation phase itself. In addition, the reduction in chemical, water, fuel and electricity consumption has positive impact on the environment.
Feedback of XYZ's management team
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Visual display is helping us and also our suppliers to motivate ourselves to do better |
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QIP has helped us understand the importance of data - a common language - and has taught us to speak in terms of it. |
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Teamwork has improved and we have learnt to collaborate better to solve problems. |
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We have started enjoying our work as never before. |
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We feel we have greater "control" of work than earlier. |
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Dedication towards work has improved |
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Productivity improvement at Saville Row Limited
Extracted form key note paper of Dr. Rajesh Bheda presented at Chittagong Fabric Apparel and Accessories Show (CAFAXPO-09) Seminar, Jan 2009
About the client
The company is involved in production and exports of Ladies, Men's & Children's woven trousers, pants & shorts. Part of the Consumer Group, the factory is certified for Quality Management Systems ISO 9000:2000. The main market is EU accounting for about 68% of the business and USA contributes for about 28% of the market share. The company's customer profile includes leading brands and retail chains. The company is making conscious efforts to build capability to handle value added products.
The client was part of the first five companies that benefitted form Productivity Improvement Consultancy of RBC as a part of Competitiveness Enhancement Program (CEP) of BGMEA supported by GTZ.
The challenge
To implement concepts of industrial engineering and work study to achieve productivity improvement in a factory that does not have qualified IE/ Work Study staff.
Broad steps followed for the implementation of CEP in the factory involved:
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Base line assessment of productivity level and sharing of results and overall approach for productivity improvement |
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Formation of Factory Improvement Team (FIT) for steering the program |
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Detailed review and evaluation of production system and existing productivity measurement system, work study practices, identification of pilot line for implementation and training on fundamental concepts |
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Design Engineered Methods and Layout to Improve Productivity in pilot line |
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Execution of Engineered Methods and Layout, hands on training and hand holding of internal team during implementation and measurement of results on constant basis |
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Gradual Roll out of learning from the pilot line to other lines and other departments |
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Assessment of results and development of future roadmap |
The Results
The eight week intervention by the experts of Rajesh Bheda Consulting in the factory resulted in 20.55% labour productivity improvement in the first attempt. In the case of second style the pilot line recorded productivity improvement of 30.77%. The details ate as provided below:
| Style |
Particulars |
Before improvement |
After improvements |
Improvement(%) |
| 1517 Ladies Trousers |
Avg. Daily output (08 Hr. day) |
536 |
560 |
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| Avg. Manpower used |
90 |
78 |
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| Productivity per person per 8 Hr. Shift |
5.96 |
7.18 |
20.55 |
| DB2103 Ladies Trousers |
Avg. Daily output (08 Hr. day) |
600 |
680 |
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| Avg. Manpower used |
90 |
78 |
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| Productivity per person per 8 Hr. Shift |
6.67 |
8.72 |
30.77 |
What made the company achieve such results?
Top management commitment- The top management commitment to the program was very clearly communicated to the factory management team by the Director, Mr. Osama Taseer on day one. He said " the core strength of our organization is the human resource and I want my people to learn new techniques and constantly evolve to improve company's competitiveness."
High involvement of factory management team- The factory management team understood the advantages of learning new methodologies, scientific principles of IE and problem solving skills for improving the productivity and competitiveness of the organization. As a result the factory team, starting from GM to supervisors, wholeheartedly participated in the training program and experimented with the tools learned and ideas provided by the experts.
Production team learned and implemented the work study techniques- A conscious decision of not employing qualified IE staff during the implementation of the program was taken. This was done to ensure that the production team learns these techniques and takes ownership of implementation. This decision ensured production team's full involvement and capacity building. A receptive working team was the biggest asset which was tapped to Saville Row's advantage.
Regular project progress review and constant communication- The factory management carried out regular project review with RBC consultants. The progress and issues if any, were communicated across the organization. People were appreciated for their efforts and participation.
CEP methodology used by RBC- There was a judicious mix of training on work study fundamentals like capacity study, method study, hourly bottleneck management and performance rating; team based problem solving skills, practical demonstrations and hand holding during implementation.
Implications for the factory and the buyers- In today's pulsating fashion business, buyers want to associate with factories that are agile and able to respond fast to ever changing market demands. They are looking for factories which are 'learning organizations', recognizing the need for constant upgrading of the knowledgebase of their team and grow with them.
The commitment to change and improvement through training the human resource shown by Saville Row team makes such organizations special for international buyers. Partnership with such organization can prove to be win-win relationship between buyers and suppliers. |
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Productivity Improvement in Knits Apparel Manufacturing
The Client:
The client is a Bangladesh based exporter catering to the European market. The client has integrated operations involving knitting, wet processing and knit garment manufacturing. Main products are Polo shirts and round neck T-shirts. The capacity is of 32 sewing lines with an average of 35 machines each.
The Challenge:
The factory suffered from lower productivity performance. Though productivity measurement tools were used, they were underdeveloped and inaccurate. Line balancing was ineffective and as a result many operators were underutilized. Irregular feeding of cutting was leading to frequent stoppages in sewing lines.
Intervention:
The intervention by RBC consultants involved:
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Base line assessment of the factory and assessment of improvement potential. |
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Factory improvement team was formed and trained in the concept o Internal Customer-Supplier Chain and problem solving |
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Training of work study and production on Industrial Engineering tools and techniques, including RBC's IT based productivity tools. |
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Identification of pilot line to implement the Productivity Improvement Program |
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Industrial engineering tools and techniques were implemented in the pilot line. |
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Line balancing was improved |
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Improvement was achieved in the feeding to the sewing line with improved coordination with cutting. |
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Improvement in productivity was monitored and handholding support was provided to factory team during on floor implementation. |
Business Impact
As against the targeted productivity improvement of 20%, this factory, recorded 33% improvement in labour productivity per 8 hours shift in the pilot line for Polo shirts.
The factory achieved substantial reduction in fabric and trim wastage
Projected annual cost saving with the achieved productivity improvement in the pilot line alone is Bangladesh Taka. 9, 04,800/- (US$ 12925). By applying the productivity improvement knowledge gained form RBC to other production lines the client can increase savings multifold. |
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