Productivity improvement in garments industry through cellular manufacturing approach

Abstract

Productivity isn’t everything, but in the long run it is almost everything. Differences in GDP growth across countries are largely due to differences in productivity growth. In Bangladesh labor productivity is lower than that of many other competitor countries. But the low labor cost is the primary factor that makes Bangladesh a place for outsourcing the production of RMG products. However, low productivity is the main limitation for the garments industry in Bangladesh. As such, application of operations management tools and techniques is essential to increase productivity. Elimination of global textile and apparel trade quotas on January 1, 2005 has brought a dramatic shift in the world market of textile and apparel products. The apparel industry faces a great competition among different countries. The key factors of the competition are the Cost, Quality and Lead Time. In the context of fierce global market competition, product prices are declining and Buyers are demanding shorter Lead Times with good Quality. A number of measures should be undertaken to substantially improve productivity. One of the most important tool to be implemented is Cellular Manufacturing (Team work) system. Cellular Manufacturing (Team work) is an approach that helps build a variety of products with as little waste as possible. This is inline with Lean Manufacturing philosophy also. Equipment and workstations are arranged in a sequence that creates better workers movement from the inside of the work area which supports a smooth flow of material and components through the process, with minimal transport or delay. Here the main idea is team work – not how many products are processed by one worker, but how many quality products are completed by the line as a whole. Continuous flow processing in this work cell is inherently more flexible, more visual, and more efficient, since it eliminates unnecessary movements and enhances communications. These features also make managing the production team easier. Once “Flow Lines” based on product groups have been created, the rate of production can be matched to customer demand. This thesis aims at developing the right approach to implement Cellular Manufacturing System through reduction of WIP inventory, reduction of material movements and handling and so forth. It is expected that these will increase productivity significantly.