Ready-made Garment Sector Research Articles

A Research on Supply Chain Network of RMG Sector

Readymade Garment (RMG) industry is one of the strongest sectors supporting the economy of Bangladesh and proper business strategies need to be applied to maintain its growth. One way to decrease the supply time is layout improvement and a better forecasting method. Here, different forecasting methods, comparison between them and improvement of plant layout are mainly focused using data collected from several factories. To determine the future demand (forecasting) of a certain company different methods (exponential smoothing, weighted moving average etc.) are used. By analyzing and comparing; a better method is proposed to predict more accurate future demand. Production efficiency and Achieved target are also found from collected data. In this research, an improved layout is proposed to a company; where line balancing is better and lead time is minimized making the supply chain more efficient. With all these analysis and data collection, a better and improved supply chain network can be used in Bangladeshi RMG sector.

Impact of Dissimilar Laws and Rules on Worker's Satisfaction in Ready-Made Garments of Bangladesh: A Comparative Study between the Factories Inside EPZ and Outside EPZ

The Ready-made Garments (RMG) sector in Bangladesh has been playing a vital role in generating employment opportunity for last two decades. At present, around 5600 factories are operating in this country and 4.2 million workers are working in this sector. More than 82% of Bangladesh’s export earnings come from the garment industry. This paper focuses on measuring and comparing the level of job satisfaction between inside EPZ garment factories’ workers and outside EPZ garment factories’ workers considering the dissimilar laws and rules in Bangladesh. In this study, the sample consisted of 180 respondents, which is randomly selected from two inside EPZ garment factories and two outside EPZ garment factories. These workers were surveyed through convenience sampling with structured questionnaire from May to June 2016 concentrating the key influential factors that significantly impact on their level of satisfaction. The statistical computer package SPSS was used to analyze the data. This study revealed that inside EPZ garments factories’ workers are satisfied with their working environment and yearly increment. On the other hand, outside EPZ garment factories’ workers are satisfied toward their working environment and earned leave. However, both the areas workers are dissatisfied regarding the supervisor’s attitudes. Finally, the recommendations were provided based on the findings of the study.

Efficient Use Of Energy and Water Resources For Sustainable Ready-Made Garment Sector: Comparing Cleaner Production Case Studies

Bangladesh Ready Made Garment (RMG) evolved in an unplanned way. The entrepreneurs had been accused of making quick money. Bangladesh economy means RMG; therefore to maintain the economic growth, a sustainable RMG is a must. RMG sustainability requires being competitive, at the same time ethical ensuring labor rights, reducing-recycling-renewing energy and water use, and environment friendly. RMG needs doing business responsibly with a vision for 2021 for achieving the 50 billion dollar mark. This paper explored the fields of efficient use of energy and water resources, where the RMG must concentrate as a first step to sustainability. Efficient use of energy is the primary step to a renewable energy. Likewise efficient use of water is a step to eco-friendly factories which will be sustainable, too. Both natural gas and water resources are limited and have to be used in a planned way. The study analyzed case studies of Cleaner Production (CP) and Partnership for Cleaner Textile (PaCT) projects run by International Finance Corporation (IFC). One of the projects had been piloted in a washing plant at Gazipur where the author actively participated and other data of multiple case studies are collected through PaCT. Data are correlated, tested and explained following a quantitative methodology. The paper concluded that apparently the initial investment for recycling the energy and water resources seem to be high but it is not, because of significant return on investment (ROI) which is viable, and time bound. The study found the attitude, vision and leadership qualities of the business leaders are vital for implementing such projects. The paper recommends the wide adoption of PaCT projects in the RMG sector.

Role of the government and Bgmea in Improving the Workplace Environment of Garments Factories in Bangladesh

In Bangladesh, the most powerful sector to earn foreign currency is ready made garments sector, but workplace environment of most garments factories is below standards. Recent incidents of many garments factories provide the proof of miserable conditions of theworkplace of the garments factories. The role of government and Bangladesh Garments Manufacturing Exporting Association (BGMEA) is crucial to improve the workplace environment of garments factories. But the question arises whether government and this business association take corrective actions to improve this environment or not. This paper tries to show what the initiatives the Government and BGMEA taken are and how those initiatives are being implemented.

Are the Functional Factors of Human Resource Management Subsisting in the Ready-Made Garments (RMG) of Bangladesh? Theory Conflicts with Reality

<p>The Ready-made Garments sector (RMG) of Bangladesh is really a flaring one. However it is a burning and varied tale. This study is designed to test whether the functional factors of HRM in garments sector is really exist or not. The study portrait that, most of the garments violate the proper human resource management practices contrast with theoretical framework. The study also suggest that the government as well as all the concerned authority should come forward with considerable efforts to ensure proper human resource management practices for smooth running and sustainable development in this sector which will result in overall economic development of Bangladesh.</p>

Fire Safety in the Readymade Garment Sector in Bangladesh: Structural Inadequacy Versus Management Deficiency

The readymade garment (RMG) industry plays a vital role in the socio-economic development of Bangladesh, yet the sector suffers from poor fire safety records. Given the lack of fire risk assessment in the industry, this paper develops a Fire Risk Index (FRI) for individual RMG factories and surveys 60 such factories to develop an understanding of the fire safety conditions in the sector. The paper differentiates the risk factors into structural (hard) and management related (soft) parameters and develops FRIs for the structural factors. The FRI for structural parameters is then compared with the FRI for management factors, published earlier. While an overall mean FRI of 2.12 on a 4 point scale indicates that fire safety condition is quite poor, the FRI for soft parameters (1.80) are even lower than the FRI for hard parameters (2.58), indicating the critical importance of the soft parameters in fire safety assessment of the RMG factories. Within the hard parameters, there appears to be more reliance on firefighting and means for escape than on precautionary measures to contain the fire, which could explain the higher frequency of fire occurrences in the industry. FRI for both hard and soft parameters appear to follow a U shaped relationship with factory size, possibly indicating a Kuznet’s effect in fire safety in the garment sector. The poor FRI for hard factors indicates large deviations from safety requirements set in this work and asks for a stricter monitoring and enforcement regime. Improving the performance in the soft parameters, however, would require changes in the safety culture and practices.

Human rights disasters, corporate accountability and the state

Purpose – The purpose of this paper is to examine the state-business nexus in responses to human rights violations in businesses and questions the efficacy of the UN guiding principles on human rights in businesses, in particular in the ready-made garments (RMG) industry in Bangladesh. Drawing on Cohen’s notion of “denial” and Black’s (2008) legitimacy and accountability relationships of state and non-state actors, the study seeks to explain why such “soft” global regulations remain inadequate. Design/methodology/approach – The empirical work for this paper is based on the authors’ participation in two multiple-stakeholder advisory consultation meetings for the RMG sector in Bangladesh and 11 follow-up interviews. This is supplemented by documentary evidence on human rights disasters, responses of the state and non-state actors and human rights reports published in national and international newspapers. Findings – The paper provides clear evidence that the state-business nexus perpetuates human rights disasters. The study also shows that the Bangladeshi state, ruled by family-led political parties, is more inclined to protect businesses that cause human rights disasters than to ensure human rights in businesses. The economic conditions of the RMG industry and accountability and legitimacy relationships between state and non-state actors have provided the necessary background for RMG owners to continue to violate the safety and security of the workplace and maintain inhumane working conditions. Research limitations/implications – Complex state politics, including family, kinship and wealthy supporters, and economic circumstances have serious implications for the efficacy of the UN guiding principle on human rights for business. This paper calls for broader political and economic changes, nationally and internationally. Originality/value – The study highlights the perpetuation of corporate human rights abuses by the state-business nexus, and indicates that human rights issues continue to be ignored through a discourse of denial. This is explained in terms of legitimacy and accountability relationships between state and non-state actors, bounded by complex political and economic conditions.

Backward Linkages in the Ready Made Garment Industry of Bangladesh: Appraisal and Policy Implications

In global apparels market, international buyers will place on order with price competitiveness along with lead time. For Bangladesh, lead time is fast emerging as a serious bottleneck. Backward linkages are playing major part of a garment industry to reduce lead time and offer competitive price in the international market. It is inevitable that one of the major issues of success in readymade garment (RMG) industry in Bangladesh intensely depends on backward lingkages status, support, and strategic formulation. This paper will briefly discuss the present condition of backward integration comparison to other countries, impact of lead time, why lead time get priorities, process of short lead time and how central backward linkages in the short-run considered central bonded warehouse (CBW) in the RMG sector. Finally this paper will focus on policy implication on backward linkage sub-sectors, scheme of intensifiying central bonded warehouse (CBW) facility, procedure for short lead time in respect of free trade apparel market.

Industrial Accidents in Bangladesh Apparel Manufacturing Sector: An Analysis of the Two Most Deadliest Accidents in History

The purposes of this study are, firstly to investigate the two recent industrial accidents: the collapse of Rana Plaza and the fire at Tazreen Fashions, and secondly, to find out the reasons behind these accidents. The study particularly focuses on the readymade garment (RMG) sector in Bangladesh. It is qualitative in nature and follows an interpretivist and constructivists philosophical paradigm. Data were collected through triangulation method which uses two deviant cases (Rana Plaza and Tazreen Garments), and responses from a qualitative questionnaire. The questionnaire sample includes 16 male participants from 8 RMG factories located in Dhaka. All the participants were top-level executives at those factories (i.e. owners and general managers). The study finds that non-compliance with the occupational health and safety (OHS) provisions and the evasive nature of the factory owners were the main causes of the accidents. The study also discovers that there is a significant difference in the OHS practice among the factory owners of the outsourced and the subcontracted factories. The study further explains the rationale behind this difference.

Total Quality Management (TQM) Adoption in Bangladesh Ready-Made Garments (RMG) Industry: A Conceptual Model

Bangladesh Ready-Made Garments (RMG) sector shows remarkable growth and significant contribution in the country’s economic development though product and service qualities are yet a considerable problem to worry about. RMG companies in Bangladesh are not fully aware about the impacts and value of Total Quality Management (TQM) implementation. Actually they mostly give emphasis on ISO 9000 execution and various researches show that application of this only enhances problems. Researchers argue that effective implementation of TQM practices is a main criteria and predictor of gaining sustainability in business. So, for being competitive in the long run, RMG industry in Bangladesh should focus more on TQM practices rather than taking advantages out of the cheapest labors. As, it is notable to mention that in case of Bangladesh RMG sector, most of the existing literatures give more emphasis and discuss about the infrastructural and strategic matters whereas TQM and Human Resource Management (HRM) practices in an attempt to improve sustainable competitive advantage are still a debate both theoretically as well as empirically. In this aspect, literatures proved that, no previous studies were conducted to verify the association among practices of TQM, sustainable competitive advantage as well as the role of HRM as a mediator to build TQM climate in Bangladesh RMG sector. In order to bridge this gap and to generate a more comprehensive argument, this paper further proposes and aims at providing a tool, a procedural framework, to enhance TQM in various RMG companies operating in Bangladesh via the development of appropriate TQM model which will ensure organizational sustainable competitive advantage where HRM practices will consider as mediating variable. Proposed research direction and conclusion are discussed in conclusion of this research.

Organizational Culture: An Empirical Study on Selected Garment Factories in Bangladesh

The study is an attempt to identify and measure the perceived organizational culture in selected sample factories in the ready-made garments (RMG) sector. Based on the concept of the OCTAPACE framework – an acronym for ‘Openness’, ‘Confrontation’, ‘Trust’, ‘Authenticity’, ‘Pro-action’, ‘Autonomy’, ‘Collaboration’, and ‘Experimentation’, data were collected using OCTAPACE profile questionnaire developed by Dr. Udai Pareek. A total of 276 respondents, of which 70 are managers and 206 are workers were interviewed from 35 garment factories located in the Gazipur district of Bangladesh. Data was analyzed with Kolmogorov-Smirnov, Shapiro-Wilk and Mann-Whitney U tests as well as other suitable statistical tools. The results show that there is a significant difference in perception between managers and workers towards “Openness” and “Autonomy”. The study also identifies the strong, fairly strong and weak aspects of culture in terms of values and beliefs that prevail in the selected organizations. Finally, the degree and direction of correlation between the various elements of the OCTAPACE profile are measured for developing and maintaining a better organizational culture. JEL Classification Code: M 14

Was the SAFTA (Phase II) Revision Successful? A Case Study of Bangladesh’s RMG Exports to India

Bangladesh has experienced phenomenal growth in its readymade garments (RMG) sector and become the world’s second-largest RMG exporter after China. Given the country’s robust position in this context, many observers expected that the SAFTA revisions under Phase II – which allowed Bangladesh’s apparel products duty-free and quota-free access to the Indian market – would lead to a surge in Indian imports of apparel and RMGs. However, this did not materialize. This study analyzes Indo–Bangladesh trade in RMGs in order to determine the underlying reasons for this anomaly. Using Balassa’s concept of revealed comparative advantage, the study establishes the strong comparative advantage enjoyed by Bangladesh though the results also show a lack of effective trade complementarity between the two countries. Overall, the findings suggest that India enjoys economies of scale in RMG production – as Bangladesh’s competitor, India has artificially maintained a secure regime through a combination of domestic export incentives and nontariff measures to restrain imports.

Organization, Management, and Wage Practices in Pakistan’s Electrical Fan and Readymade Garment Sectors

The electrical fan sector in Pakistan has existed since at least the country’s independence and produced for the domestic market for most of its history, although the sector has had strong export growth in the last 15 years. On the other hand, the readymade garment sector has a shorter history, but has been export-oriented from the beginning. The fan sector has retained the traditional batch production system while garments are produced along a line. Nonetheless, both rely on piece rate-based wages to meet their production targets. In this paper, we describe production, management, wage practices, quality, and some barriers to reorganization in these sectors.

Framing a Comprehensive Policy to Spur Industrialisation

Bangladesh adopted free market economy in late 80s. Opening up its market to foreign investment the government is trying to assist the private sector in playing a vital role in industrialisation and employment generation with a view to alleviating poverty. The government and the private sector worked hand in hand in promoting export-oriented readymade garment (RMG) units and it became the largest foreign currency earning sector of the country. The government allowed back-to-back letter of credit (LC), bonded warehouse facility and many more to assist the garment factory owners. But after three decades of the RMG sector's inception none of the other sectors is coming forward to back it. Experts forecast few sectors were awaiting takeoff during the last decade. For example, we have export potential of our leather goods sector, ceramics products, pharmaceuticals, shipbuilding, jute goods, home textiles, agro-processed products, information and communication technology (ICT), light engineering products, frozen food, handicrafts etc. Bangladesh has a domestic market of about 160.4 million (16.04 crore) people and the easy access to two largest markets of the world-India with 1.27 billion people and China with 1.36 billion people. Bangladesh has free trade agreements with India through SAFTA, BIMSTEC and negotiating more free trade agreements with India and China under the Asia Pacific Trade Agreement (APTA). India is offering duty-free market access to a long list of Bangladeshi products as a least developed country (LDC). With economic development the local people's purchasing power is also increasing in the domestic market. Therefore, Bangladesh has every potential to be an industrialised country, if a comprehensive legal framework is developed.

RMG in Bangladesh

Hostile political conflicts have caused Bangladesh to miss out many global economic opportunities despite much achievements made since independence. Its evolving readymade garments (RMG) sector is one of the most affected sectors of this malicious politics. The focal point of this article is to demonstrate the recent violence of vicious politics of Bangladesh and its effect on the evolving RMG sector. The result shows that the average losses in this sector due to the recent political turmoil are very alarming. Moreover, foreign buyers have cancelled their orders from Bangladesh for uncertain shipment for the same reason. It is an ominous sign for a developing sector. So, the main objective of this article is to figure out the losses and missed opportunities of the RMG sector caused by the political impasse and to provide some suggestions to protect the RMG sector from these political atrocities.

Internal Control Practices of Readymade Garments Sector (Textile Industry) in Bangladesh

Internal Control Practices of Readymade Garments Sector (Textile Industry) in Bangladesh

Can HRM Practices Improve Job Satisfaction of Ready Made Garment (RMG) Workers in Bangladesh? An Alternative Solution to Recent Unrest

Labor unrest in RMG sector of Bangladesh has become a major problem in trade and finance due to whichorganizations are losing their business. RMG workers are not so happy with their employers because of improperlabor practices. However, employee’s job satisfaction is an important factor for organizational success. ThroughHRM practices, organizations try to increase satisfaction among the employees for goal achievement. Theobjective of this study is to examine the relationship among financial, non financial HRM practices and jobsatisfaction of RMG workers in order to reduce unrest. For this study, 35 different RMG companies have beenchosen on convenient basis around Dhaka, Gazipur and Narayanganj district of Bangladesh. This study adoptsregress method under 200 questionnaires survey where data have been collected from both managerial and nonmanagerial workers. Present study has found that both financial and non-financial job factors are making theworkers satisfied, so that they are less likely to involve in labor unrest.

Morbidity patterns, nutritional status, and healthcare-seeking behavior of female garment workers in Bangladesh.

Background:The ready-made garment (RMG) sector is the main pillar of Bangladesh’s economy, and female garment workers are the key workers in this sector. Unfortunately, they are paid very little; in fact, their pay is among the lowest anywhere in the world. This situation makes the workers very vulnerable to different kinds of health-related problems, including malnutrition, and it also results in their having poor healthcare-seeking behavior. So, the aim of this study was to determine their nutritional status, their various kinds of health-related problems, and their healthcare-seeking behavior.Methods:This was a cross-sectional study in which purposive sampling was done. Data were collected through a structured questionnaire, and the participants’ heights and weights were measured according the guidelines provided by the World Health Organization (WHO). All data were computed and analyzed using SPSS version 16.01 software. Chi squared values were calculated to analyze the data and the prevalence rate ratio (PRR) was measured to determine the association of body mass index (BMI) with health problems.Results:More than half of the participants (53.67%) had various health problems, and almost half of them (43.33%) were underweight (BMI ≤ 18.5 kg/m2). Among those who were underweight, about 96% of them had one or more health-related problems in the last three months (P-value < 0.001). Their PRR was 2.59, which comprises low BMI as a risk factor for high morbidity. Among the workers who had one or more health-related problems, more than 22% of them did not go to see a doctor during their illnesses. Only about 12% of them went to qualified practitioners, and, surprisingly, 37% of those completed the prescribed treatment.Conclusion:The study showed that there is high morbidity among female garment workers who have low BMI values and poor healthcare-seeking behavior, factors that should be addressed by their employers and policy makers.

Business at the Cost of Life: Experience of the Apparel Workers' of Bangladesh

Working in garment factories like living in Dozakh „Ÿ Kulsum: Worker of a garment factory The paper explores perspectives of the involved communities „Ÿ mainly workers, leader of trade union federation and activists working on labour rights issues „Ÿ about the functioning of the global production system of ready-made garment (RMG) industry of Bangladesh and compliance mechanism in order to map out where in reality the social responsibility norms of business or issues of corporate social responsibility (CSR) are grounded in. The condition of emergence of the study lies in the collapse of the building Rana Plaza, which caused death of 1133 garment workers, mostly women. Most of the workers of this industry are indeed women. Review of institutional and academic discourse regarding CSR suggests the issues of human rights and labour rights underpin the design and strategies of CSR within the Global Value Chain of commodity (GVC) production. In the case of the context of developing countries or for postcolonial states CSR, GVC of production, sustainability and sustainable development all are interrelated concepts, while we find in reality these notions are marked by the price of life and free of cost product. Hence, the paper poses a question whether CSR is a notion in the case of a postcolonial state like Bangladesh? Key words: Bangladesh, Corporate social responsibility, sustainability, human rights, and global value chain of production, ready-made garment sector, and postcolonial state.

The Paradox of Export Growth in Areas of Weak Governance: The Case of the Ready Made Garment Sector in Bangladesh

Can export growth occur in states with weak governance and competitive clientelism? Conventional wisdom is that effective industrial policy requires a politically stable country with a centralized government. Absent these conditions, countries can pursue alternative types of industrial policies. Contexts with stable, or predictable, mis-governance and a government committed to nonintervention can yield strong export performance. We test this hypothesis in Bangladesh by examining the creation of industrial policy in the Ready Made Garment (RMG) sector. This paper highlights how the particular “political settlement” in Bangladesh has created a viable environment in which the RMG sector continues to grow.