This paper is prepared based on a case study of garments industry. Mr. Khan started a garments industry. After running for 5 years, he reached at the breakeven point that is - no profit and no loss. At the same time, he faced some problems regarding the sustainability of the garments. Here we tried to identify the problems that faced by Mr. Khan based on the on going garment sectors’ condition of Bangladesh. According to us, he did not face any budget problem but he faced performance problem and time problem. After identifying the problems, we tried to give some recommendations regarding the sustainability of his garments industry which are discussed here.
Flowchart of problems:
The problems we have identified so far, are of mainly three types. The problems are as follows: 1. Performance problems:
1.1 Poor communication
Mr. Khan has poor communication with employees, customers(foreign & local) and suppliers appears for several reasons - lack of skills or lack of understanding of the importance of strong communication, employees don't get information in a timely manner, employees are given too much information that isn't relevant etc. 1.2 Poor infrastructural design Now a days, the most garments has poor transportation and communication system and building structure, entrance and exit system is bad in case of fire and other accident. 1.3 Low product quality Sewing defects, Color defects, Sizing defects and Garment defects are quality related problems faced by Mr. Khan which make the product quality low. It creates very bad impression and results in loss of business and reputation. 1.4 Lack of management policy Today’s garments sector has huge problem with management like- lack of proper instruction, , lack of proper training, workers dissatisfaction with their facilities and payment. 1.5 Lack of research Although a garment is a thrust sector, lack of proper research and development work remains a major inadequacy for long. The garments do not research about product, buyers and their competitors. 1.6 Export import barriers
Garments are facing export and import barriers. In exporting, garments facing high duty and cota problems. In importing, garments are facing port and customs problems. 1.7 Limited Export Market Mr. Khan is highly concentrated in two major markets- EU and USA. concentration in a few markets is risky. 1.8 Excessive labor union Labor union raises their voice for wage increases, set working hours, bonus, on time payment and safety conditions. and productivity. 1.9 Low productivity of workers The labor productivity of Mr. Khan is much lower. The majority of the workers come from slum dwellers with little or no education. This is one of the reasons of low productivity. Lack of training, motivation and low labor cost are also responsible for lower productivity. 1.10 Failed to apply TQM (Total quality management) Mr. khan has failed to apply TQM (total Quality Management) in his production process. 1.11 Lack of high technology Lack of standard machinery results in poor quality and defected garment products. In most of the factories there is theft cases of parts of machines and these are replaced with low quality parts to keep the machine operational. 1.12 Limited knowledge in international marketing information Mr. Khan has limited access to current market intelligence and international trade information. Foreign buying houses have been dominating the marketing part of the business. But if these buying houses shift their bases to other countries, Bangladeshi exporters may face serious problems in finding their ultimate buyers. For that reason they strike which reflects on profit Limited exported in Germany, UK, France, Netherland, Italy and Canada. The high
1.13 Inefficiency in port management The Chittagong Port is the most important entry and exit point for trade and commerce of the country. It is one of the most...
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