Export Oriented RMG Factory Study On Aj Fashions LTD Executive Summary

Export oriented RMG sector and workers impact study on AJ Fashion of Bangladesh 1
EXPORT ORIENTED RMG FACTORY STUDY ON AJ FASHIONS LTD

EXECUTIVE SUMMARY
The Readymade Garment (RMG) industry of Bangladesh tells an impressive story
of country successful transition towards a major export- oriented economy.
Starting its journey in the late 1970s with relatively small investment, the industry
flourished in 1980 and 1990 and has become the largest industry in Bangladesh.
However the Ready–Made Garments (RMG) sector has emerged as the biggest
earner of foreign currency. It also provides employment to around 4.2 million
Bangladeshis, mainly women from low income families. All these things have
helped Bangladesh to gain a handsome share in the global garment business. From
early 1990 onwards the RMG industry has become the largest foreign exchange
earning sector in the economy. In 2012-13, Bangladesh earned nearly $ 23 billion
by exporting garment products and RMG cover 75 percent of the total export of
the country, having the lion’s share of the country’s exchange. Contribution of
RMG is very positive in Bangladesh economy, sharing 13 percent of the total
national GDP.
The focal point of AJ Fashion Ltd. has been founded in 1997 and since then
accelerated to its journey with the commitment to the society to build prosperous
Industrial backbone for socio-economic development of the country. After almost
21st economic years, it has established a number of diversified and potential
buyers throughout the world for manufacturing and marketing of a wide variety of
export oriented products.
Presently, AJ Fashion Ltd. is one of the leading Garments Companies in
Bangladesh, which has been contributing buyer agency activities in a large extent
of the country by providing quality branded-generic Garments. The organization
believes in “Quality never ends' and refuses to settle for anything until it exceeds
the existing standard.” The company has been awarded with the WRAP-11715:
2000 Certificate in 2012 to 2013 for serving its valued customers with products of
excellent activities.
All this activities has been done to observe out the actual current SWOT analysis
circumstances of the organization. By which the executive board gets some
feasible idea of future strategic moves of the organization
DEPARTMENT OF MARKETING
UNIVERSITY OF RAJSHAHI
However, nowadays HR Department is considerate as the Mutual Bridge of

making eventually understandable decisions between all the departments among
an organization. How and why is that? The answer is – “Since each department is
Human Oriented and HRM deals with every individual human being or employee
working in an organization, this statement is true as well as valid one.’’
CHAPTER ONE
1.1 Introduction
Bangladeshi Garment Industry is the largest industrial sector of the

country. Though the history of Readymade Garment Industry is not older one but
Bangladeshi clothing business has a golden history. Probably it started from the
Mughal age in Indian subcontinent through Dhakai Musline. It had global
reputation as well as demandable market around the globe especially in the
European market. The history of the garment industry dates back to 1977 when
the first consignment was exported to then West Germany by Jewel Garments.
The number of units, however, remained a meager 46 until the end of 1983. From
a humble beginning the sector has thus made phenomenal growth over the last
two decades, the number of units growing to around 4500. The RMG industry
achievement is noteworthy, particularly for a country plagued with poor resource
endowments and adverse conditions for industrialization. Exports increased from
approximately 32 million US dollars in 1983/84 to 1.4 billion dollars in 1992/93.
In 1987/88, the RMG export share surpassed that of raw jute and allied products.
The .ure further rose to 5.7 billion dollars in 2003/04, representing a contribution
of about 75 percent of the country’s total export earnings in that year. The
employment generated by the sector is estimated to be around 1.5 million
workers.
So, to run our economy as a developed and sustained country, we should
emphasis on the sector of RMG and the workers of RMG industry. If the markers
of this industry are suffering then we lose the great earnings of foreign currency
which is used for further development of Bangladesh.
1.2 Origin of the Study

As a student of Business Administration, I had to complete a 90 days attachment
with any organization. My attachment was with AJ Fashion Ltd. and I worked as
an intern from January 15, 2013 to April 15, 2013. And that period, I collected
information regarding preparing a report on Garments Marketing of AJ Fashion
Ltd.
1.3 Objectives of The Study

 To identify the marketing activities of AJ Fashion Ltd.
 To find out the strengths, weaknesses, opportunities and threats of AJ
Fashion Ltd.
 To pinpoint the problems of AJ Fashion Ltd. and possible
recommendations
 To know the merchandising activities of AJ Fashion Ltd.
1.4 Methodology of the Study

Data Collection Method:
The process of data collection is not hassle-free for any outsider. As I worked
there for three months, they have allowed me to collect data from officers of AJ
Fashion Ltd. Sometimes, they have provided data verbally and I took note of that.
Source:
Information provided on this report is of two types. One is primary source and
another is secondary source. In fact, most of the information was collected from
primary sources.
Primary Sources
1. Interview with the AJ Fashion Ltd. employees.
2. Day-to-day conversation and discussion with the section manager of AJ
Fashion Ltd.
3. Interview with different suppliers.
Moreover, I have maintained a close contact with the production officers of AJ
Fashion Ltd. who regularly involved with production of fabric and also contact
with merchandiser who regularly involved with sales.
Secondary Sources
1. Different books related to the Garments sector.
2. BGMEA annual report.
3. Newspapers.
4. Company websites and so on.
5. AJ Fashion Store, Cutting, Sewing, Sample, Finishing section.

1.5 Limitation of The Study
Garment industry of Bangladesh still now is not that much developed. I faced
many difficulties in writing this report. Some of this are-
 I found so many difficulties in searching information, in garment factory
most of the employee doesn’t have any educational background.
 Due to the lack of enough time I could not collect all necessary
information to prepare a full and better report on this subject matter.
 The Buyers are very busy.
 Most of the organizations key personnel were too busy. So they did not
give me enough time regarding this matter.
 Lack of knowledge and experience, I agree that making a comprehensive
study on garments marketing requires a great deal of experience and
garments knowledge. As a B.B.A student, I do not possess that kind of
knowledge and experience.
CHAPTER TWO
LITERATURE REVIEW
2.1 Present Situation of RMG Sector in Bangladesh

According to the study, the US-based fashion companies are expected to boost
their sourcing from Bangladesh in the next two years. McKinsey, a global
management consulting firm, described Bangladesh as the next hot spot in apparel
sourcing. The renowned firm forecasts export-value growth of 7-9% annually and
our apparel export will double by 2015 and nearly triple by 2020 provided that we
can successfully overcome a few challenges including developing infrastructure
and skill workforce.
There is that old adage, don’t kill the golden goose. Why I compare Bangladesh
garments sector with the golden goose? The reason is the garment sector in
Bangladesh has been giving for many years. Bangladesh is the second largest
exporter of readymade garment products trailing China according to the
McKinsey report (2011). Bangladesh’s garment exports during July-June 2012-13
period climbed by about 12.7 percent to US$ 21.515 billion over exports of US$
19.089 billion made during the corresponding period of 2011-12. In 2012-13, the
top three export destinations for Bangladesh garments were Europe, which
accounted for US$ 12.56 billion, followed by the US and Canada, which
accounted for US$ 4.99 billion and US$ 980 million, respectively.
Now, RMG products (which make up most of the US import from Bangladesh)
are not included in the list of duty-free products in GSP, there will an export fall
of about $40 million. At present, Bangladesh exports about $5 billion worth of
goods (mostly RMG products) to the USA every year and hence, the suspension
from US GSP will account for a fall in export of about 0.8 %. Losing the GSP
facility will cost Bangladesh millions of dollars in taxes. It is also influence the
European Union to take similar action, which would have a much bigger impact
on Bangladesh and its garment sector
Bangladesh would suffer a huge setback. Due to the recent political unrest,
Bangladesh RMG sector losses in billions of taka every day. The blockades have
put the garment sector in a tight corner as exporters are counting losses from order
cancellation and rising transport costs. Buyers are cancelling orders as exporters
fail to meet the lead time due to transport crisis. Some buyers are also imposing
penalties in case of delayed shipment, cutting prices of garment products and
transport costs have surged by around 30 percent due to expensive air shipment.
Many factories have halted production as they can’t bring imported raw materials
from ports. The BGMEA’s research and development team has collected three-
day data (December 1-3) from 10 exporters to assess the overall losses caused by
the blockade. Orders worth $3.96 lakh were cancelled during the period, while the
exporters spent $3.08 lakh on air shipment. Many small factory owners may go
bankrupt due to failing shipment on time. So that’s the trap: the golden goose is
caught between a rock and a hard.
2.2 Overview of the RMG Sector:

In spite of this the industry exports totaled $19 billion in 2011-2012. They
expected export earnings to increase to $23 billion in 2012-2013. It also provides
employment to around 4.2 million Bangladeshis. An overwhelming number of
workers in this sector are women. This has affected the social status of many
women coming from low income families.
2.3 History:
1950 was the beginning of RMG in the Western world. In order to control
the level of imported RMG products from developing countries into developed
countries, the Multi Fibre Agreement (MFA) was made in 1974. The MFA
agreement imposed an export rate 6 percent increase every year from a developing
country to a developed country. In the early 1980s Bangladesh started receiving
investment in the RMG sector. Some Bangladeshis received free training from
the Korean Company Daewoo. After these workers came back to Bangladesh,
many of them broke ties with the factory they were working for and started their
own future.
The RMG sector is expected to grow as many small and medium industries
have grown here over the years. To meet high demand from low-end garment
makers, zippers, buttons, labels, hooks, hangers, elastic bands, thread, backboards,
butterfly pins, clips, collar stands, collarbones and cartons are the major garment
accessories that are being produced in Bangladesh. Several studies have shown
that Bangladesh has immense potentials for garment business in the coming years.
International buyers are shifting to Bangladesh with the increased orders, as the
cost of production in other competing countries including China has soared

abnormally. However, there is no dispute that the most vital role behind our RMG
sector’s success is playing by cheap labor, which has given the Bangladesh
garments sector an extra advantage with its rivals.
Ready Made Garments (RMG) are mass-produced finished textile products of

the clothing industry. Some common types of RMG are shirt, pant, sweaters, T-
shirt etc. Origin of the RMG was after 1970 after the decreasing demand of jute
industry. It took decades to stand itself as the leading profit making sector of our
country. Today with many public and private organizers are giving the
technological and other facilities for the this sector as a result it is becoming
strong and has shaped thus today.
Ali (1996), conducted a research, where he mentioned that public sector textile
mills faces difficulty in procurement of raw cotton due to financial crisis,
production volume is disturbed, cost of production is increased for it. He
suggested that, BTMC should allocate more raw cotton for full capacity utilization
of various public Textile mills. This will reduce the unit cost of sales, prices of
yarn and the mill will be able to sell at a competitive price in our local market.
Market research should be conducted by BTMC to know the customers demand
and choice. It is also needed to co-ordination between procurement, production
and sales for the managerial success of public sector textiles mills.
Banu (2003) conducted a study which examined that liquidity position of public
sector cotton textile mills are not satisfactory. And position of six public sector
mills are worst quick liquidity position having almost no quick assets to meet all
current claims easily. In order to withstand the adverse liquidity crises in the
particular mills under public sector, she suggest that availability of adequate
working capital should be ensure, cash inflows should be increased through
achieving operating margin and planned management of current assets.
There are two types of process for producing RMG in our country. They are
Knitted and woven. Among them Knitted is mostly used. Every year RMG earns
the most of our economy. BGMEA is formed for the welfare and maintenance of
RMG.
A changing dynamic in the RMG sector the loss of 1,136 lives when Rana Plaza
collapsed on 24 April 2013 sent shockwaves worldwide. Coming just months after
the fatal fire at Tazreen Fashions in which 112 died it was clear that the
Bangladesh Ready Made Garment (RMG) sector had reached a crucial juncture.
Progress made & challenges ahead for the Bangladesh RMG sector / 3 Since Rana
Plaza the Government of Bangladesh has joined hands with both local and
international stakeholders to enhance safety and working conditions in the RMG
sector. Much has been achieved but we all recognize that this must be an ongoing
process. We cannot fail in our endeavors as the lives and livelihoods of many
millions of Bangladeshi’s depend on us. Mikhail Shipar, Secretary, Ministry of
Labour and Employment, Government of Bangladesh. Rana Plaza was a call for
global action to improve safety and working conditions in factories producing
goods for consumers worldwide. While progress has been made in Bangladesh,
more needs to be done to make the world's factories and workplaces safe and
decent places to work.
We need to ensure global supply chains perform in line with internationally
respected labor standards, so that goods, wherever produced, are made in
conditions of decent work.
2.4 Overview of RMG industry of Bangladesh

RMG sector in Bangladesh is comprises with large manufacturing units. It is
located in industrial areas operated by large workforce along with technique for
producing goods in Garments industry complex . The number of workforce
associated with the industry stands about four millions.
There are various types of products from RMG sector such as;
Historically Bangladesh focused on producing Woven garments but in recent
times Bangladesh is more successful in Knitwear production. Bangladesh is
exporting its RMG in most of the economic developed country. Many foreign
buyers come to Bangladesh for buying its products. Bangladesh exports its RMG
in many international brands like H&M, C&A, GAP, UNIQLO, M & S, Wal-Mart
etc. exported RMG products are:
 Shirts
 Pants
 Sweaters
 Jeans
 T-shirts
 Blazers
 T-shirts & Polo shirts
 Tank tops,
 Pajamas,
 Sport wear,
 Under garments,
 Men’s & Ladies fashion wear
 Kids wear
Leading RMG industries of our country are:

 Ha-Meem groups
 Squire Fashion Limited
 Apparel Fashion BD
 Mohammadi Group
 Habib Group ltd
 FORTUNE GARMENTS LTD.
 FRIENDS WORLD KNITWEARS LTD.
 A & H ENTERPRISES LTD.
 3A GARMENTS & HOSIERY (PVT.) LTD.
 A J FASHIONS LTD.
Code of Conduct (COC)

Social Accountability standards have been developed by the international
organizations such as Fair Labor Association (FLA), Worldwide Responsible
Apparel production (WRAP), Council on Economic Priorities Accreditation
Agency (CEPAA), The Ethical Trading Initiative (ETI) and Business for Social
Responsibility (BSR). Reputed brand buyers in large supply chain have taken the
guideline from those organizations and formulated their own standard of COC and
also the acceptance criteria.
The basic principles of COC have been derived from the principles of
international human rights norms as delineated in International Labour
Organization Conventions, the United Nations Convention on the Rights of the
Child and the Universal Declaration of Human Rights. It has nine core areas to be
addressed upon. These are as follows:
1. Child labor
2. Forced labor
3. Health and safety
4. Compensation
5. Working hours
6. Discrimination
7. Discipline
8. Free association and collective bargaining
9. Management systems
While following the above criteria is compulsory for satisfying COC, local culture
and regulation of Govt. can not be overlooked. For instance, limit of working
hours and compensation for extra work may not be the same for all geographical
zones in the globe. Minimum basic wage also depends on the economic situation
of a particular country in question. The introduction of rights of free association
and collective bargaining is guided by the political environment, the maturity
level of workforce and above all the basic training of the management of the
organization.
By keeping in mind the complex scenario, several case studies in Bangladesh
have been made with respect to the information obtained through actual social
compliance audits performed by leading auditors of internationally well known
consumer products service companies. Social compliance audits conducted as per
the COC of different brand buyers of USA and Europe were basically based on
the following steps:
1. Opening meeting with the factory management (informed the scope of audit)
2. Factory Tour (observed working condition)
3. Document Review (payroll, time card, personal file, age documentation etc.)
4. Employee Interview
5. Closing meeting with factory management (discussed audit findings and

recommended necessary improvements).
Highlights of typical findings in different aspects of social accountability are
described below. Suggested corrective actions in typical cases are also indicated.
Some of the non compliance issues have also been photographed as shown in
Plate no 1 to 6. This is to understand the actual scenario of social compliance in
different RMG factories in Bangladesh.
2.5 Major competitors

Bangladesh RMG sector is facing tough competition from china, India and
Vietnam. Vietnamese garments companies are strengthening their business in
markets, putting more pressure on the Bangladeshi garments sector. Garment
exports from Bangladesh was 12.69 percent to $21.51 billion in 2012-13 from the
previous year, on the other hand it was 6.97 percent to $19.9 billion in 2011-12
from 2010-11, according to BGMEA analysis.
Bangladeshi exported garment items worth $17.91 billion in 2010-11 and $12.5
billion in the year. Now, the number of garment factories in Bangladesh is 5,000
and 2,000 in Vietnam, according to the McKinsey report.
Table 1:Bangladesh vs Vietnam as export competitor

Source: http://archive.thedailystar.net/beta2/news/vietnam-a-close competitor-to-bangladesh-rmg/
However, China now faces some structural problems. Per unit labor cost in the
country is on the rise. Its labor productivity grew at 7.0 to 13 per cent in the past
two decades, leading to higher wage cost and losing its foothold as the world's
lowest cost manufacturer of consumer goods. China's exchange-rate policy and
global imbalances are also prompting Beijing to concentrate on high-end
manufacturing and services sectors, known as vertical economy.
China's vertical economy would create much room for low-end labor-intensive
manufacturing in Bangladesh and other South Asian economies that faced
Chinese competition until recently. China is projected to buy about $20 trillion
worth of goods and services in this decade.
Bangladesh, one of the post-China emerging economies, has already started

competing with China in global apparel exports. In fact, China is now using
Bangladesh to outsource its RMG products taking advantage of the cheap labor
costs here.
HIGHER MANUFACTURING GROWTH NEEDED: To seize export
opportunities in China, Bangladesh should create room for higher manufacturing
growth. Bangladesh's per capita manufacturing value-added, for instance, is
$107.65, compared to China's 1,147.12 and India's 163.44.
Bangladesh virtually needs a manufacturing makeover diversifying both export
basket and destination. In doing so, the country needs to get its manufacturing
priorities right. Owing to the economy's structural problem, it is hardly surprising

that Bangladesh's export basket is very narrow.
2.5.1 Impact on society

RMG has changed Bangladeshi society, changed the workplace condition. in the
past men were the mostly worker but with the rise of garments industry the
situation has changed reversely. In RMG sectors, not men, women are the major
participants.80% of the garments workers are women.
2.6 Social Impact Can RMG Sector help Bangladesh to become a middle
income country
(Dhaka, 8 December 2014) Dhaka Apparel Summit 1st of its kind in Bangladesh,
is being held at the Bangabandhu International Conference Center on 7-9
December 2014. The summit was organized by Bangladesh Garment
Manufacturers and Exporters Association (BGMEA) in collaboration with Brand
Forum Bangladesh. Press Release- Session 9
The 9th session of the Dhaka Apparel Summit titled “Social Impact-Can RMG
Sector help Bangladesh to become a middle income country” was held at
Bangabandhu International Conference Center (BICC) in Dhaka from 5.45 PM-
7.15 PM on 8 December.
This session focused on the role the apparel industry has been playing for the
economic independence, social uplift and better livelihoods of Bangladeshi
people. The progress toward women empowerment, poverty alleviation and
human development indicators were discussed. How to establish a common
understanding on how important the labor intensive apparel industry is for

building the future of a country like Bangladesh, where population is abundant
and the core asset of the country was also discussed.
Rachel Heath, Assistant Professor of Economics, University of Washington said
that she conducted a study on 1395 households in which she found that the RMG
industry has been contributing in delayed marriage and child bearing, and
decreased drop-out in Bangladesh.
2.6.1 Women Empowerment
The garment sector is the largest employer of women in Bangladesh.The garment
sector has provided employment opportunities to women from the rural areas that
previously did not have any opportunity to be part of the formal workforce.
2.6.2 Child Labor
The bitter fact is the rate of success in the RMG sector has also resulted in the
worst form of child labor in many factories, especially in the non-compliant ones.
In cases, it assumes the form of even bonded labor.
2.6.3 Children have the right to be children:
To be loved cherished, educated, nourished, clothed, pampered, and fostered as
children when they are children (Hasnat, 1995, quoted from Natoli, 1992). Child
labour is, then, a denial of the right to enjoy childhood and achieve full physical
and psychological development. Children need a fostering household and social
environment in order to grow into economically active, productive adults with the
ability to participate effectively in the social, cultural, and political activities in
society. To foster households, a child in house not only receives adequate and
nutritious food for normal and healthy physical growth, but also needs appropriate
health care, affection, and intellectual stimulation. Society should ensure that each
child receives education at least primary level and has opportunities for healthy
social interaction. The legislation prescribes that children between a
gees 6 and 10 must attend school up to the fifth grade or up to the age of 10 years
(ILO, 1998a).
When children are forced to work, they are often denied their rights to education,
leisure and play. They are also exposed to situations that make them vulnerable to
trafficking, abuse, 32 Int. NGOJ. violence and exploitation. However, millions of
children around the world are involved in many working places, several of them
for long hours and in hazardous conditions. Very few of them work during off-
school hours and may be desirable for their healthy growth into adulthood (ILO,
2004). Child labor refers to the employment of children in any work that deprives
children of their childhood. Harmful child labor consists of the employment of
children that is economically exploitative, or is likely to be hazardous to or
interfere with, the child's education, or to be harmful to the child's health, or
physical, mental, spiritual, moral or social development (IFC, 1999). Child labor
not only harms the child, but also keeps up poverty and compromises economic
growth and equitable development (ILO, 1998b).
A number of international agencies have established minimum standards with
regard to children and work. IFC's approach is guided by UN and ILO standards-
(a) work which exposes children to physical, psychological or sexual abuse;
(b) work underground, under water, at dangerous heights or in confined spaces;
(c) work with dangerous machinery, equipment and tools, or which involves the
manual handling or transport of heavy loads;
(d) work in an unhealthy environment which may, for example, expose children to
hazardous substances, agents or processes, or to temperatures, noise levels, or
vibrations damaging to their health;
(e) work under particularly difficult conditions such as work for long hours or
during the night or work where the child is unreasonably confined to the premises
of the employer. Several international instruments relevant to child labor have
been developed by the UN and ILO and minimum standards set regarding the
employment of children. The 1990 UN Convention on the Rights of the Child
provides a definition of what constitutes the harmful employment of children,
while the 1999 ILO Convention 182 and its associated Recommendation 190
define and prohibit the ―worst forms‖ of child labor . In 1998, IFC adopted a
policy statement based on the UN Convention's (IFC, 1999).
In addition to prohibiting the harmful employment of children, this con venation
requires signatories to
(i) provide for a minimum age of employment;
(ii) regulate hours and conditions of work for children; and
(iii) penalize those who contravene the above referenced regulations. Ratified by
116 countries. Convention 138 sets a universal minimum age for employment at
15 (14 in countries ―whose economy and educational facilities are insufficiently
developed‖). Ratified by 117 countries. Convention 182 calls for the immediate
elimination of the worst forms of child labor and defines a child as anyone under
18. Worst forms include:
(i) all forms of slavery or practices similar to slavery , such as the sale and
trafficking of children, debt bondage and serfdom and forced or compulsory
labor, including forced or compulsory recruitment of children for use in armed
conflict;
(ii) the use, procuring or offering of a child for prostitution, for the production of
pornography or for pornographic performances;
(iii) the use, procuring or offering of a child for illicit activities, in particular for
the production and trafficking of drugs as defined in the relevant international
treaties;
(iv) work which, by its nature or the circumstances in which it is carried out, is
likely to harm the health, safety or morals of children. The ILO estimated in 2002,
about 246 million child labors (aged 5 to 17) in the world, with 180 million
referred to as the worst forms of child labor, often involving hazardous conditions.
Mostly eight million children among them are working in the unconditional worst
forms of child labor, which include armed conflict, forced and bonded labor,
prostitution, pornography, drug trafficking, and other ill icit activities (Palley,
2002).
According to International Labor Organization (ILO) statistics published in
May 2002, there are an estimated 352 million children aged 5to 17years engaged
in some form of economic activity around the world. Of these 352 million, 246
million are either-
(i) below their country‘s minimum age for employment;
(ii) working in occupations that jeopardize the physical, mental or moral
wellbeing of a child; or
(iii) working as slaves, prostitutes or bonded laborers (ILO, 2002). Child labor is
particularly widespread in the manufacturing industries in Asia which is a
growing awareness of the problem (Delap, 2001). Mostly children are found
working in garments, bakeries and confectioneries, hotels and restaurants,
transport, bidi (cigarette) factories, small engineering workshops, fish-processing,
and other informal and unregulated sectors. Child labor is work that exceeds a
minimum number of hours, depending on the age of a child and on the type of
work. Employers always prefer to employ children because they are cheaper and
considered to be more compliant and obedient than adults. Many families in
Bangladesh rely on income generated by their children for survival. Therefore
child labour is often highly valued and is accepted and common. Factories Act
and Rules establishes 14 years as the minimum age for employment in factories,
and the Children Act of 1974 prohibits the employment of children under 18 in
brothels or as beggars (ILO, 2002). The penalty for violation of this Act (Article
44(1)) is a fine up to 1,000 taka. Other laws include the Shops and
Establishments Act 1965, Ahamed 33
Table 1. Bangladesh key statistics Working children, aged 5 -
Years Children
17 years 7.4 million
Chi ld domestic workers 421,000 Percentage of children (aged 5-14 years)

engaged in child labor (2006)2 National Slum Tribal 12.8 19.1 17.6
Source: Bangladesh Bureau of Statistics, Report on National Child Labor Survey,
2002-2003; BBS/UNICEF, Multiple Indicator Cluster Survey 2006, October
2007.
2.7. Stadard of Living
RMG has dramatically increased the standard of living in Bangladesh. People
with low income are improving their condition with the money they earn. Though
their money is not sufficient enough but have been able to increase their standard
of living.
2.8 Education Growth

Educational rate has been risen as an impact of RMG in society. Garments
worker. So, they don’t get enough time to look after their child. As a reason, they
get their children admitted into school. Another reason is improved financial
condition of garments worker.
2.9 Urbanization
A statistical report says that In 1985, urbanization level in Bangladesh was only
13.4% while it is expected to be dramatically risen 37.3% in 2025.This statistical
report proves that RMG has a sweeping effect for the urbanization in Bangladesh.
By urbanization, there has been major changes in our country.
Figure 2: Urbanization level of Bangladesh

2.9.1 Opportunities
The garments business can be developed by ensuring proper use of the following
opportunities.
i) Rising demand and usages of national garments products in fashion
industry.
ii) Development of sectors like retail that offers great requirements of
garments products.
iii) Developing of domestic sector.
iv) E-commerce and Internet are emerged as promissory distributions
channels to market and sell the garments products.
2.9.2 Future prospect

The garments industry in Bangladesh has grown in an unplanned manner and a
critical demand-supply gap has arisen for both yarn and fabric. The crisis will
naturally deepen unless appropriate backward linkages, the incorporation of the
fundamental steps in the textile industry all through to the RMG industry, can be
built to meet the rapidly approaching challenges in the global textile market. As
the population is growing and the standard of living is increasing in Bangladesh,
the demand for textiles is increasing rapidly.
Dramatically increase capacities in spinning, weaving, knitting, and dyeing,
printing, and finishing sub-sectors. This will require the adoption of the most
modern and appropriate technology to ensure quality products at competitive
prices.
2.9.3 RMG vs. other sector
RMG is far way ahead than other sectors. A pie chart shows the proof:
Figure 5:RMG vs other sectors contribution
CHAPTER THREE
An Overview of AJ Fashion Ltd.
3.1 Background of The AJ Fashion Ltd.
“AJ Group” has begun its journey as “AJ International” in the year 1997 as a
vendor/sourcing agent in Bangladesh. Since its inception, the organization being
run by highly qualified, experienced, professional management and Staff
accelerated by latest machineries/technology, skilled workmanship with
substantial marketing. The proficient management of the company was able to
gain the confidence and won the respect of the customers in terms of quality
assurance and on time delivery. Thus one customer introduce us many other
customer.
“AJ Fashions” is one of the production facilities being run under the Banner of
“AJ International” and are “WRAP” certified factory, producing best quality
products. Maintaining on time delivery schedule and commitment to the buyers
which helped us to flourish and grow our business only within a span of fourteen
years. Eventually it has been grown-up as a group of company. Today we have
our own embroidery unit and most of the accessories (Elastic, draw string,
sewing thread, twill tape, bungi cord, poly bag, etc) produced by us.
3.2 Certification:
3.3 Customer Reference Of AJ Group

- NAME AJ FASHIONS LTD.
ADDRESS 234/4, KACHUKHAT, DHAKA CANTONMENT. DHAKA,
BANGLADESH.
HEAD OFFICE AJ INTERNATIONAL, 2 MONIPURI PARA, TEJGOAN, DHAKA-
1215, BANGALDESH.
PHONE NO OFFICE – 88 02 8142391-3 , FTY – 88 02 9871906,04475035105
FAX NO OFFICE - 88 02 8123427
CONTACT PERSON MD. ANWAR HOSSAIN CHOWDHURY, CELL– 88 0I711520079
& 88 01971520079
MD. KAMAL HOSSAIN , CELL – 88 01711520074 & 88
01971520074
E-MAIL ADDRESS ajintl@ajintl.com, gm@ajintl.com
WEB SITE http://www.ajintl.com
- NAME AJ FASHIONS LTD.
ADDRESS 234/4, KACHUKHAT, DHAKA CANTONMENT.

DHAKA, BANGLADESH.
HEAD AJ INTERNATIONAL, 2 MONIPURI PARA, TEJGOAN,
OFFICE DHAKA-1215, BANGALDESH.
PHONE NO OFFICE – 88 02 8142391-3 , FTY – 88 02
9871906,04475035105
FAX NO OFFICE - 88 02 8123427
CONTACT MD. ANWAR HOSSAIN CHOWDHURY, CELL– 88
PERSON 0I711520079
& 88 01971520079
MD. KAMAL HOSSAIN , CELL – 88 01711520074 & 88
01971520074
E-MAIL ajintl@ajintl.com, gm@ajintl.com
ADDRESS
WEB SITE http://www.ajintl.com
SU
GRA
NO OF B
MA FEM ND
EMPLOYEES AREA = TO
LE ALE TOT
TA
AL
L
OFFICE STAFF :
MANAGER/INCHARG
E 9 1 10
PRODUCTION/ACCO
=
UNTS EXE. 3 0 3
WORK STUDYEXE 6 0 = 6
ADMIN EXE/ ASST. 4 0 = 4
STORE EXE/ ASST. 6 0 = 6
DOCTOR
=
/NURSE/WELLFARE 0 3 3
TOTAL = 28 4 32
OT STAFF:
PEON/LABOR 8 0 = 8
CLEANER/SWEEPER 0 16 = 16
OTHER 2 0 = 2
SECURITY
=
/CHECKER 7 1 8
TOTAL = 17 17 34
MAITENANCE
SECTION:
INCHARGE 3 0 3
MAIN &
ELECTRICAL ASST. 8 0 8
TOTAL = 11 0 11
CUTTING SEC :
INCHARGE 0 1 = 1
SUPERVISOR 4 0 = 4
MARKER MAN 3 0 = 3
CUTTER MAN 7 0 = 7
CUTTING ASSTT 28 2 = 30
TOTAL = 42 3 45
SU
B GRA
TO ND
MA FEM TA TOT
AREA LE ALE = L AL
SEWING FLOOR – 1
LINE - A -
=
( SUP/LC ) 4 0 4
LINE - A
=
(OP/IRON /HELP) 8 76 84
LINE - B - ( SUP/LC ) 4 0 = 4
LINE - B
=
LINE - C - ( SUP/LC ) 4 0 = 4
LINE - C
=
TOTAL = 36 228 264
SEWING FLOOR – 2
LINE - D -
=
( SUP/LC ) 4 0 4
LINE - D
=
LINE - E - ( SUP/LC ) 3 1 = 4
LINE - E
=
LINE - F - ( SUP/LC ) 4 0 = 4
LINE - F
=
TOTAL= 35 229 264
QCD :
QUALITY AUDITOR 1 0 = 1
Q IN-CHARGE/QC 2 0 = 2
AQC 10 0 = 10
SEWING QI 26 4 = 30
CUTT QI 6 0 = 6
STORE AQC 1 0 = 1
TOTAL = 46 4 50
FINISHING
SECTION :
IN CHARGE 1 0 = 1
SUPERVISOR 9 0 = 9
FQI 30 25 = 55
FIN OP 5 20 = 25
FIN FOLDING 0 15 = 15
FIN ASSORT 10 0 = 10
FIN IRON 15 0 = 15
HELPER 10 10 = 20
TOTAL = 80 70 150
GRAND TOTAL= 295 555 850
Percentage:
34.71
Male- %
Female- 65.29%
19th October, 1998.

ESTABLISHE
D
PRODUCTI TTL FOUR FLOOR :
ON SPACE GROUND FLOOR – 7000 SQFT
1ST FLOOR – 7000 SQFT
2ND FLOOR – 7000 SQFT
3RD FLOOR – 7000 SQFT
4TH FLOOR – 7000 SQFT
5TH TH FLOOR – 7000 SQFT.
TOTAL = 42000 SQFT.
HEIGHT OF 9.5 FEET

EACH
FLOOR
SPACE OFFICE (GROUND+2ND Floor) :

DISTRIBUTI 1000 SQFT(400+600)
ON DOCTOR & CHILD CARE ROOM :
600 SQFT
STORE AREA:-
ACC’S/ FAB STORE ( Gnd FLOOR ) :
5000 SQFT
FINISHED GODOWN :
2000 SFT
CUTTING SEC :
4500 SQFT
SEWING SEC :
14000 SQFT
FINISHING SEC & PACKING :
7000 SQFT
DINING ROOM :
2500 SQFT
MD SIR ROOM & PRAYER ROOM :
1700 SQFT
OPEN SPACE (GROUND & 5TH.FLOOR) :
3700 SQFT(900+2800)
TOTAL SPACE OF AREA : 42,000

SQFT
TOILET MA FEM STA TOT

DISTRIBU FLOOR LE ALE FF AL
ION GROUND
FLOOR 1 2 1 4
1ST FLOOR 2 8 0 10
2ND FLOOR 3 1 2 6
3RD FLOOR 2 6 0 8
4TH FLOOR 3 3 0 6
5TH FLOOR 0 1 0 1
DINING 0 0 0 0
TOTAL= 12 20 3 35
BANKER REF UNITED COMMERCIAL BANK LTD., 58, MOTIJHEEL
BANK NAME C/A., LOCAL OFFICE, DHAKA.
ISLAMI BANK BANGLADESH LTD.
PRODUCTIO WINDBREAKER, PADDING JACKET, LONG PANT,
N JOGGING SUIT , SKI SUIT , ROMPER , OVERALL ,
ITEM VEST , SWIM TRUNK , SHORTS, FLEECE JACKET,
SPECIALIZED SWEAT SHIRT ETC.
PROD. WINDBREAKER – 1300 DZ
CAPACITY/ LONG PANT – 2000 DZ
MONTH
PADDING JACKET – 800 DZ
JOG SET -- 1000 DZ
SWIM /BOARD SHORT -- 3000 DZ
MINIMUM 400 DZ. PER STYLE

QNTY
GOODS MENS – 35%
SHIPMENT LADIES – 25%
BY
KIDS – 30%
CATEGORY
BABY – 10% .
TOTAL =100%
NUMBER 641 NOS
OF
MACHINES
3.4 List Of Buyers Of AJ Group
3.5 Production Capaciry:
3.6 AJ-Group-Organization-Chart:
3.7 AJ Fashion revenue ratio:
3.8 Products:
Mens Jackets
Ladies Jackets
Mens Bottom (Long Pant)
Mens Bottom (Shorts)
Ladies Bottom (Shorts)
3.9 DIFFERENT DIPERTMENT’S ACTIVITIES IN AJ FASHION LTD
3.9.1 LIST OF DEPARTMENT OF AJ GROUP:

1. Finance and Commercial department 2. HR department 3. Merchandising
department 4. Sample department 5. Store/warehouse 6. Cutting and Fusing
department 7. Sewing and production department 8 Quality control department
9. . Finishing and Packaging department 10. Compliance
3.9.2 INFRASTRUCTURE OF A J FASHIONS LTD.
3.9.3 Organizational Structure

A J Fashions Ltd. is the certified Textile Mills of Bangladesh Textiles Mills
Corporation (BTMC). The organizational structure of A J Fashions Ltd. is as
follows:
Chairman
MD
GM
Manager DGM Additional Chief Production

Admin. Technical Account Officer
Assistant Assistant Assistant Assistant

Manager Security Manager Manager
(Local) Officer (Commerce) (Store)
Quality Jobber Shift In Spinning

Control Supervisor charge Master
Officer
Assistant
Worker Worker Spinning
Master
3.9.4 Finance and Commercial Department:

Concorde garments group’s corporate house at Jahangir tower 4th floor where
the finance and commercial department situated. Basically, finance department
runs the financial accounting system and perform functions such as:
3.9.5 Activities of this department:
 Help in Decision Making. AJ FASHION financial accounting system records

all the transactions happening in the organization on a day to day basis. To
make decisions managers need information. Necessary information can be
generated through financial accounting system as it record actual transactions
happening in the company.  Provide Information to Potential and Present
Investors to Make Their Investment Decisions. MD sir expects a return on the
investment they make. If the return is satisfactory they hold/buy the
investment. If it is not satisfactory they sell the investment. To decide whether
to buy/hold or sell the investment investors need information. This investment
information can be generated through financial accounting system.  Meet
Legal Obligations. In certain period, it is a legal obligation of the companies to
maintain ledger accounts and final accounts. It is a legal obligation of the
companies to carry out an independent audit to obtain an opinion about
financial statements.
3.9.6 Activities of this department:
 A Professional Employer Organization (PEO)  Business Process

Outsourcing (BPO)  Application service providers (ASPs)  E-services  Risk
management  Hiring and Firing of personnel  Complaints & problems of
workers  Enforcement and compliance with employment laws  Health care
benefits  Trained to worker and staffs  Keep all bio data related all skill
information individually
3.9.7 Merchandising department:

Concorde garments group’s merchandising department situated near to their
production department at Mirpur-14. In elaborately, Merchandising is a process
through which products are planned, developed, executed and presented to the
buyer. It includes directing and overseeing the development of product line from
start to finish. Marketing and merchandising department: A team of

merchandisers and marketers work together under a profit controls head.
Merchandisers handle the foreign buyers. The teams are made according to the
buyers being handled. Merchandising is the department which mediates marketing
and production departments. Sometimes, merchandising department will have to
do costing and pricing also. In any case, the merchandiser is the person whose
responsibility is to execute the orders perfectly as per the costing and pricing. So
it is a very valuable department.
Activities of this Department:
 Product Development  Market and product Analysis  Selling the concept 

Booking orders  Confirming Deliveries  Designing and Sampling 
Costing(CM, C&F, CIF, FOB)  Raw Material book  Flow Monitoring 
Production Follow Ups  Payments Follows  Internal & external
communication,  Sampling  Lab dips order  Accessories & trims booking 
Preparing internal order sheets  Preparing purchase orders  Advising and
assisting production,  Advising quality department about quality level 
Mediating production and quality departments  Giving shipping instructions
and following shipping,  Helping documentation department  Taking
responsibility for inspections and  Following up the shipment.
3.9.8 Merchandising Function:

Merchandiser should have the Following Beasic Qualification:
 Good command in English and adequate knowledge of technical terms for

accurate and efficient communication.  Good knowledge of fiber, yarn,
fabric, dyeing, printing, finishing, dyes, different fastness properties, garments
production, etc.  Clear conception of the usual potential quality problems in
the garments manufacturing.  Good knowledge of the usual raw materials
inspection systems and garments inspection systems.  Knowledge of the
quota system used in each of the producing countries; duty rates; customs
regulations; shipping and banking documentation, etc.
Merchandiser is a data bus between buyer and seller:

Merchandiser is he who builds up relationship with the buyer and acts as a
seller. He plays a vital role in an organization in a sense that he bears more
responsibility than other in regards to execution of an order. The responsibilities
which he bears on the job are as follows:  He represents as a buyer to the factory.
 He represents as a seller to the buyers.  He inspects all the qualities as a buyer
(from the buyer¡¦s point of view);  He negotiates a price for the sellers.  He
looks at the deal from seller¡¦s point of view.  He looks into the business to
flourish more in the future.  He tries to offer the deal more competitive without
compromising the quality.  His object is to satisfy the buyers to progress more of
the future business.  His aim is to impress the buyers by means of Right
Products, Right Quality, Right Quantity, Right Time, and Undamaged Condition.
3.9.10 Sample Department:

Garment Sampling: Garment samples are inevitably important and are
developed tested before starting the bulk production. It means making a sample of
the garment /fabric which requires to be sold. Sampling is one of the main
processes in Garment Industry and it has a vital role in attracting buyers. Because
the buyers generally places the order after they are satisfied with the quality of the
samples. The samples decide the ability of an exporter. The buyer will access the
exporter and his organization only by the samples. If the samples are of good
quality and with reasonable price naturally the buyers will be forced to place the
order. So it is essential that the samples should be innovative and with optimum
quality. The purpose of sampling is not only to get bulk orders and also give some
additional benefits to the exporters. By doing sampling the exporter can estimate
the yarn consumption for developing the fabric, a clear idea on costing more ever
the manufacturing difficulties. Besides by doing sampling only the exporter can
optimize the processing parameters for mass production, which helps to avoid all
kind of bottlenecks. All these works are carried out by the sampling department,
which us led by a sampling in charge. The Details Attached to the Garment
Sample: Confirmation of order, each sample sent 0 the buyer has the following
details attached to it, with the help of a tag. It contains the details pertaining to
both, what the buyer has demanded and what supplement fabric/trim etc. they
have used (if applicable).After the  Ref no.  Color  Fabric  Composition 
Description  Quantity  Style n0/ Size  Store
Sample section process:

Design / Sketch ↓ Pattern Design ↓ Sample Making ↓ Production Pattern ↓
Grading ↓ Marker Making ↓ Spreading ↓ Cutting ↓ Sorting/Bundling ↓
Sewing/Assembling ↓ Inspection ↓ Pressing/ Finishing ↓ Final Inspection ↓
Packing ↓ Dispatch .
Types of sample:
Broadly garment samples are categorized as development samples and
production samples. Samples that are made in development stage are as following:
1. Proto Sample 2. FIT sample 3. Salesman Sample/Photo shot Sample 4. Size set
Sample 5. Pre-production Sample In production stage factory need to submit few
more samples that includes 6. Top of Production Sample 7. Shipment sample 1.
Proto Sample: These samples are proto type of new design created by designers.
This is the first sample in product development stage. Proto sample is made to
communicate the design of a style or a line or to present garment structure. In
proto samples fit and fabric detailing is not been considered. 2. FIT Sample: Once
proto sample is approved, FIT is being made with actual measurement.
Modification on the pattern is done to get desired fit of the garment. FIT is one of
the most important factor to be considered during sample development. FIT
sample is being tested on live model or Dress form for to verify garment fit and
fall. 3. Salesman Sample: Salesman samples are made to put on display in the
retail showroom. Salesman sample (SMS) are displayed for assessing customer's
feedback and according to customers response buyers forecast demand of a
particular style. Sales samples are made with actual fabric and trims and
accessories. Buyer pays for salesman samples to the developer. 4. Size set
Sample: The purpose of the size set is to check fit of the garment in different
sizes. In this stage factory develops samples in multiple sizes. Generally, buyers
ask size set sample in jump sizes, like S, L, and XXL. Buyer check size set sample
and give feedback to factory if anything need to be corrected. 5. Pre-production
Sample: All the above samples are made in sampling department. Buyer wants
pre-production sample (PP sample) to be made in actual production line, so that
operators know what they are going to make. This sample is made with actual
fabric, trims and accessories and made by sewing line tailors. PP sample must be
approved by buyer or buying house merchants (technical persons) prior to
proceeding actual production. 6. Top of Production Sample (TOP sample): Once
production is online, few pieces is taken out in the middle of the production.
Production pieces are sent to buyer as TOP sample. All buyers do not ask for TOP
sample. Purpose is to cross-check whether factory is following PP sample
specification or not. 7. Shipment Sample: When style is being finished and packed
for shipment, 2-3 finished and packed pieces with all packing details are kept for
future reference. Shipment sample is kept by factory merchants and buyers
merchant. The approved shipment is sent directly to warehouse and merchants at
the buyer do not get garment out of the shipment. That is why they keep shipment
sample for future reference.
3.9.11 Store/Warehouse:
For a bulk production industry it is essential to maintain a well-organized
& well equipped inventory system. The main responsibility of this department is
to store all the raw material necessary to produce garments. This department is
sub divided into three sections. Warehouse is the stock of any garments item or
accessories resources used in an Organization. Where kept everything before
production.
Fig. Store
3.9.12 Store Process Diagrame
Raw Materials Received.  Security check as per C- TPAT procedures. 

Goods are verified against invoice. Shortage  Marked for inventory/ inspection .
 Store with Bin cards in bins or steel pallets.  Storing buyer wise and lot wise. 
Trims are keeping on rack with bin cars. Inspection  10% inspection of fabrics
and trim from bulk.  If fail another 15% inspect.  Still fail another 25% inspect.
 Still fail inform to MMD & reject full quantity with rd sticker. Inventory 
Excess or shortage inform to MMD & commerc ial dept.  Delivery invoice is
forwarde d to C& F.
Working Flowchart of Fabric Store Department:

They follow a strong and appropriate working procedure. Their work
process flow is given below: Invoice Waiting for inventory QC inspection
Inventory Pass goods area Cutting input report (size break down) Sewing line
Requisition Issue sewing line .
Working Flowchart of Fabric Store Department
 Invoice: Invoice collect from supplier by Merchandiser. Without invoice it

is not possible to make the inventory, because there is list of goods in invoice.
After comparing invoice with received goods, received goods are placed as
inventory.  Waiting for inventory: When receive goods are not in pass goods
are waiting for inventory. Count goods are as per invoice which gets from
Merchandiser. Time of waiting inventory is maximum 24hrs.  QC
Inspection: To cheek the quality of received goods.  Rules of QC inspection:
 10% inspection of received goods.  2.5% defects are equal, over 2.5% will
be failed.  Non-confirm goods: It means something defects but it is
acceptable.  Inventory: When ware house gets invoice from Merchandiser,
responsible persons match invoice with received goods that is inventory. If
there is any shortage, they are to inform to Merchandiser to solve the problem.
 Pass Goods Area: When all activities are finished like inspection, register,
count etc. goods are allowed for pass goods area. And also goods are ready to
going for production.  Cutting Input Report (size breakdown): As per cutting
section’s requirement break out quantity in the cutting input report on the basis
of PO, Style etc.  Sewing Line Requisition: It is based on PO, order quantity,
style and consumption as per sewing line requirement.  Issue Sewing Line:
As per sewing line requirement, compare requisition slip with break down size
report. Then it is issued by responsible person and recorded in the Register
book. 0
Accessories:
Sewing Line Accessories:  Yarn  Thin yarn: 4/2,5 /2,6/2  Fat yarn: 20/2
(2yarn together), 20/3 (3yarn together)  Button  Interlining 
Main Label: It contains the names of buyer & country, Ex. PVH, ASH City
etc.  Sub labels  Size Label: It contains the size of the garments.  Care
Label: It contains the care construction. Different types of care label are given
below.  Washing code  Bleaching code  Ironing code  Dry cleaning code
 Drying code
Finishing Line Accessories:  Neck board  Hangtag with sticker  Tissue

(when folding shirts)  Poly back  Po sticker (If required) Button packs
measurement:  1 GR = 144pcs  12 GR= 1GG  1GG=1728pcs
Elastic Measurement:  1 GR = 144 yards  12 GR= 1GG  1GG=1728 yards
Yarn Measurement:  1 con=4000 meters.

02.08: PROCESS OF ACCESSORIES RECIVING
Issuing record for Trim & Accessories:
 Issues Trim & Accessories as per customer PO, Trim & Accessories supplier
invoice, lot & trim card.  Issue items as per process and to person
responsibilities. Process of Received Goods:  Inventory register as per
customer PO number.  10% inspection.  Inspection report in register. 
Factory name.  Style number.  PO (purchase order) number.  Invoice. 
Trims & Inspection details.  Storage location.
Issuing record for Received Goods:
 Issuing fabrics as per PO, style, supplier invoice, lot and swatch. Fabrics
Receiving & Inventory:
The process of fabrics receiving & inventory as like as Accessories receiving
& invoice. 4 points system wise fabric inspection: Defects Penalty Point 0-3’’
1 3.1”-6” 2 6.1”-9” 3 9.1”-Up 4 Note: Up to 28 points per 100 SQ MTS/YDS

are acceptable defects. Fabrics inspection: 50cm fabrics cut from a roll and
send to washing plant as per buyer’s requirements.
3.9.12 CUTTING AND FUSING DEPARTMENT:

Garment production starts with the cutting process. In this process, fabric is
being cut into components (shapes or patterns of different garment parts, i.e. front,
back, sleeve, collar shapes etc.). In mass production multiple layers of fabrics are
laid on a table and large number of garments is being cut at a time. The laid fabric
stack is called as lay. The cutting process includes number of sub-processes and
flow of the processes is as following. Each process is briefly explained in the
following. Ratio for marker Marker Laying Marker setting and cutting Scissoring
Numbering Re-lay Finish cutting Bundle handling Input to sewing line
Fig. Cutting Section
3.9.14 Cutting and Fusing Department

Marker: Marker is a thin paper which contains all the necessary pattern
pieces for all sizes for a particular style of garments. It is made just before cutting
and its purpose is to minimize the wastages. The width of the marker is equal to
the width of the fabric and it should not be greater than the width of the fabric, i.e.
fabric width is greater than or equal to marker width. The pattern pieces should be
placed very carefully in such a way that it would minimize wastages.
Fig. Marking Section
Objects of Marker Making: The garment industry has to pay a great

attention to the marker planning because when the cutting room cuts cloth it
spreads around half the company’s turnover. Any reduction in the amount of cloth
used per garment leads to an increase in profit. Marker planning is a
conceptualizing, open and creative process. In order to plan efficiently, it is
necessary to visualize the marker as a whole or to see it at a glance.
Quality inspection procedure for markers:
 Locations with manual marker making system: In these locations, the

markers should be inspected by the Quality Control Department before the
fabric is laid. This will leave sufficient time to make any correction to the
marker that is necessary
 Computerized marker making system: To get optimum efficiency of markers

as well as to minimize fabric wastage they done marker by computerized
marker making system .It has the digitized by which the patterns are make
grade and with the help of the software as well get output as marker with the
plotter.
Fabric receiving:
Fabric requirement for an order is calculated according to the average
consumption of the fabric from the marker. In case of multiple color order, color
wise requirement is made. Fabric department issue fabric to cutting against the
fabric requirement (generally requisition slip is used). Fabric relaxation: This

process is optional. Specially used
Marker Making:
After layering of a lay, pre made paper patterns (or ready markers made by
plotter) are placed on the top layer of the lay. In manual marker making, marking
is done around each pattern shape using marking chalk. This process is called as
marker making. In a marker all garment components are placed.
Cutting:
Lay is cut following the marked lines on the top of the lay. Cutting is done
using straight knife or other cutting means. In cutting process garment component
are separated. On the basis of pattern shape different cutting method/ machine are
selected.
Numbering:
Separated garment components are numbered to ensure that in stitching all
components from same layer are stitched together. It is important to avoid shade
variation in a garment. Between the cutting and sewing processes cut components
may be passed through other processes like printing and embroidery. There is
maximum chance of mixing of the components. If there is layer number in each
component then at the time of stitching only correct components will be stitched
together.
Sorting:
According to production system (Make through, progressive bundle or one
piece flow system) cut components are sorted. In sorting all component of a
garment placed together. Size wise sorting and in case multiple colors are cut in a
single lay, color wise sorting will be required.
Bundling:
As per the production line requirement a certain number of pieces with all
component are tied together. This process is known as bundling. Each bundle is
marked with bundle number, style name, size number and quantity of pieces in
that bundle. At this stage cutting are ready to send to production line for stitching.
3.9.15 Sewing and Production Department:

The project of joining fabric or seam is called sewing. Element of sewing:
 Sewing thread
 Needle & Sewing Machine.

Flow sequence of sewing section:
Cutting fabric load in sewing section Line plan according to style or design
Marking Matching according to bundle no Sewing according to garments design
or style Quality inspection during sewing Quality inspection after sewing Excess
thread cutting Remove dirt & dust from garments surface Quality audit Send to
next process .
Flow Sequence Of Sewing Section
Sewing Defects:
 Needle damage
 Skip stitches
 Thread breakages
 Broken stitches
 Seam puckering
 Pleated seam
 Wrong stitch density
 Uneven stitch density
 Staggered stitch
 Improperly formed stitches

Line balancing:
Line balancing is the allocation of sewing m/c according to style & design
of garments. It depends on what type garments we have to produced. It is done
increase the productivity & quantity.
Objective of Line balancing:

Line Balancing is a main part of a mass production. Three kinds of systems
regardless of being different in details are workstations in sequences. Row
material is included in the line at the beginning or in the middle. Parts included in
the system transfers from one workstation through the other and at the end leaves
the system as completed product. Transfer lines uses manpower very little when
compared to assembly lines. The certain properties of transfer lines are transfer
and process of a product automatically through a line.
Objectives that should be gained balancing an assembly line are as follows:
 Regular material flow.
 Maximum uses of man power & m/c capacity.
 Minimum process time.
 Minimizing slack time.
 Minimizing work station.
 Maximum output at the desired time.
 Agreed quality maintenance of the garments.
 Reduce production cost.
The importance of line balancing could be summarized as follow:
 Good line balancing increase the rate of production.
 Line balancing help to compare the required machinery with the existing one &
make a balance.
 It also helps in the determination of labor requirement.
 Good balancing reduces production time.
 Profit of a factory can be ensuring by proper line balancing optimum production

at the agreed quality.
 It reduces fault in the finished product.
 Line balancing helps to know about new m/c required for new style.
 It becomes easier to distribute to particular job to its operator.
 It becomes possible to deliver goods at right time at the agreed quality for least
cost. Steps in Line Balancing: Now-a-days, Standard Minute Value (SMV) is used
as a tool for the line balancing production control and the estimation of efficiency.
In a similar way, the time taken to do a job for making garments like
shirt/trouser/blouse/dresses could depend upon a number of factors like.
 The length of the shirt/trouser /blouse/dress.
 The number of stitches per inch.
 The presentation of item.
 The pricing of garments.
All sewing machine descriptions are given below:

1. Plain Machine or Lock Stitch Machine:  No. of needle: Generally 1
needle or 2 needle  SPM (Stitches Per Minute) : 1500-5500  Stitch
Length: 5mm in Juki (DDL-5500 model).  Automatic Thread Cutting. 
Automatic Bobbin Winging.  Edge Cutting System.  Most commonly
used for sewing of woven garments.
2. Over lock or Over edge Stitch machine:  No. of needle : one or 2 needle 
No. of thread : 2-5 threads  SPM : 6500-8000  Stitch length: maximum
4mm and stitch length can be changed by push button.  Stretching
maximum 1:0.6 and Gathering maximum 1:4.  Used for sewing both
woven and knitted goods but extensively used for knitted goods.
3. Button Holing Machine:  Stitch group : lock or chain stitch 
Arrangement of button hole size being small or larger  Arrangement of
stitch density being increased or reduced.  Button hole can be made to cut
the hole before or after sewing a button hole.
4. Button Attaching Machine:  Productions lock stitch, chain stitch or hand
stitch.  Various types button clamps needs for attaching various sizes and
types of button.  The bottom may be 2 or 4 holes. 4 whole button may be
sewed by cross or parallel.  If chain stitch is used, the sewing looks nice,
but the security of stitch is comparatively less.  In case of lock stitch used
no possibility of sewing opening. But not looks nice.  In fully automatic
machines, button feeding and positioning inside the button clamp is
performed by a hopper and pipe.  It can attach predetermined number of

buttons at a predetermined distance in acyclic order.
5. Feed of the Arm:  Number of needle : normally 2  SPM : 3000 -3200 
Number of thread : 4 threads  Twist per inch : 15 – 20  Stitch group :
chain stitch  Mainly sewing shirts, Jeans, Gridding goods & double
stitching pants.
6. Kansai or Multi needle chain stitch machine:  Number of needle : 6-17 
Number of thread : 12 – 34  SPM : 4000 – 4500  Stitch group : Chain
Stitch
7. Chain Stitch Machine:  No. of needle : one or more needle  No. of
thread : one or more thread (Single thread or multi thread)  SPM : 1800-
6000  Stitch length : 1.4 to 4.5 mm  Automatic thread trimmer  Various
types of feed mechanism is adjusted to the machine  Used in knitted wear
and jeans
3.9.16 Industrial Engeering (ie):

The main function of this department is to re-engineering the garment from
the sampling stage that it would be production friendly for the production as well
helps to increase the productivity through machine layout, time and motion study.
In the sewn products industries we must continuously ensure that we remain
competitive profitable whilst also striving to improve our personal and
community’s standard of living. Productivity improvements may be achieved
through: Industrial Engineering department:  To follow up the production
process  Work process development  SMV calculation & Line target 
Efficiency control  Time study  Capacity study  Workers training  Machine
sequence lay out  Thread consumption  Operator interview Duties and activities
of a work study officer:  SMV making.  Layout makes.  Machines arrange. 
Attend production planning (P.P) meeting.  First week production.  Line
feeding.  Work aid arrangement.  Method study (innovation).  To take video &
record it.  Time study.  Line capacity find out.  Bottle neck operation. 
Individually follow up bottle neck operation & try to increase production. 
Capacity & efficiency wise target setting &try to achieving.  Line balancing. 
Motivation of the worker.  Maximum time study in production line & try to any
kind of production related problem.  Monitoring the production achievement

hourly daily.  Lost time record.  Try to increase the productivity.
1.9.17 Finishing and Packaging Department:
LAY OUT OF FINISHING SECTION: Washing (Spot Remover)
Finishing button Thread trimming Iron Poly Packing Cartooning Final Inspection
Shipment. LAY OUT OF FINISHING SECTION PROCESS SEQUINCE OF
THREAD TRIMMEING: Loop cut Pocket clean /Gun/ Hand Pocket raise cut
Thread trimming Q.C check.
Process sequince of thread Trimmeing Process Sequnce of iron:
Iron on waist Needle mark removes Button turn & button close Brush on
garments Final iron Q.C check . 02.14. PROCESS SEQUNCE OF IRON
PROCESS SEQUNCE OF POLY: Get up (Any process) Q.C. Check Poly table
Tag attached Price sticker attached by hand tag Brush & garments Garments fold
Leg sticker attached Insert poly Shade matching Poly close by scotch tape Poly
sticker attached Q.C pass sticker.
Process Sequnce of packing trims:
Trims cover all the items used in the garment expect the basic fabric. There
are hundreds of items used to manufacture the garments. Proper selection of trims
& its quality are very important for styling; otherwise the garments may be
rejected or returned by the customers.
Sewing Thread:
 Shade, color fastness, etc.  Tensile strength, Elasticity, Shrinkage, Moisture

Regain, Abrasion Resistance, etc.  30s, 60s, 20/2, 40/9Ne, etc. Labels:  Main
label  Size label  Care label  Content  Price  Patch Button:  Metal
buttons are very common in use  Elastic  Cotton polyester, etc. String/Cord:
 Cotton
Polyester Tags:
 Price tags  Hang tags, etc. Poly bag:  Strength, chemical mixture,
Thickness (micron/mm: 1mm=1000 micron) Blister Bag:  0.05 mm in
thickness;  Loaded capacity is higher than poly bag. Carton:  3 ply  5 ply 
7 ply size (L, W, & H)
Sticker:
 Hook and pile Plastic clip, Tag pin, Hanger, Gum Tape.  Finishing
efficiency: Earn min = SMV × Production Available min/clock min = Total
man power × working min.  Efficiency: Earn min Available min×100% in
example – If SMV 4, Production 1200, Total man power 65, & Working min
600.
3.9.18 Quality control:

During product manufacturing, CGG monitors quality of raw material and
final product through inspections at each step of product manufacturing. Fabric
Inspection and QC Procedures: Incoming fabrics are inspected at JC Penney’s
recommended 4 Point system. 100% fabric is inspected by fabric QC’s. Each fault
is given points keeping in view the nature and intensity of the faults. 40 Points are
allowed in 100 inspected yards. If number of faults/points exceeded than 40 per
100 yard, the fabric roll is rejected. Lab test reports are also taken from fabric
suppliers and verified through internal and third party labs randomly. Accessories
Inspection: Accessories at the time of receipt in store are randomly inspected by
QC’s/concerned persons at least up to 10% of the received quantity. Cut Parts
Inspection: 100% cut parts are inspected before input to sewing. The rejected
components are replaced from remnants or removed. Cut parts are also inspected
100% before sending and after receipt from printing and/or embroidery. Sewing
Inline Inspection: During stitching operations, the inspections are done on JC
Penney’s recommended 7-0 System. Inline QC inspects 7 pieces randomly for
each machine operator twice a day. If he finds any fault among these 7 inspected
pcs, the Sewing operator has to inspect the whole bundle himself and offer
inspection again to Inline QC. If the inspection is fault free, then this sewing
operator will undergo follow up inspection of 03 Consecutive bundles. If 03
Follow up Inspections are ok, the Inline QC moves to next machine operator. If
during 1st up inspection, the Inline QC finds any fault, then the said sewing
operator has to go under 2nd follow up inspection. If the 2nd follow up fails then
operator has to stop the work for two decisions to be made depending on the
nature of the faults (either machine to go under maintenance or sewing operator to
go for training or replacement). Sewing End Line Inspection: 100 % garments are
checked on sewing related faults after sewing completion. Both in and out sides of
the garments are inspected. Use of Auto Trimmer & Thread Sucking Machines:
We are using Auto Trimmers for clipping to avoid un-necessary clipping cuts
during this process. We are also using thread sucker machines to ensure that
packed garments are free from loose threads. Final QC Inspection: Garments are
checked 100% on quality after pressing for fabrication, finishing, appearance,
sewing, shading, labeling etc. to make sure that quality garments are packed into
cartons. Measurement Specs Control: Before packing, garments are 100%
checked on measurements for key measuring points. Internal Q.C Lab & Third
Party Testing: Fabrics and garments are randomly tested at internal QC lab on
fabrics’ basic performance features like fabric weight, shrinkages, torqueing, color
fastness, PH Value etc. In addition to this, garments are sent to third party labs
(SGS, ITS, BV) for independent testing to make sure that the outgoing goods are
meeting customer’s required quality standards.
3.9.1 9 Quality Assurence:

QA conduct daily random audits of cut parts during cutting process, inline
audits during sewing. They also do Batch audits before packing. Only QA passed
garments are packed into cartons. Finished goods audits are also conducted when
shipment is ready. All internal QA audits are done at AQL 1.50 Level II of
military std. III. Quality Assurance Department is reporting to factory ownership
for independent audits and to convey true reflection of quality being produced.
3.9.20 Compliance Department:

CONCORDE GARMENTS GROUP is totally a compliant factory. CGG
has wages and overtime calculation through computerized Human Resources
Management System based on employee’s in/out through employee’s card
swiping. Leave record is also maintained by system. All wages and
compensation/benefits are paid in time and as per local law. Employees are hired
irrespective of religion, gender, color, and race. No worker hired under the age of
18 years (age also verified before hiring through documents and by physician
also). We have Child Care facility, Fire hydrant system (including Fire
Extinguishers and smoke detectors), Medical facility, Blockage free Aisles-Exits-
Stairs, Pure Drinking Water Facility, broken needle log, worker’s grievance log
and needle detector etc. Regular fire drills are conducted to keep training more
fire .hters. Have worker’s participatory committee. GIZ-BGMEA Compliance
Audit Pass on Feb 01, 2012 (Bale no got 77 marks out of 100)  BSCI – Ready for
it, can be done upon request of any BSCI member buyer.  WRAP – Ready for it,
can be done upon request of any buyer.  Sedex  GSV: Global Security
Verification  WCA: Workplace Conditions Assessment
3.9.21 My Roles & Responsibilities At Merchandising Department
Responsibilities of a merchandiser:
Merchandiser need to work in a systematic way to ensure proper delivery
of products at due date. They had to do their work into daily, weekly, monthly and
yearly basis. The activities are
Daily Activates of a merchandiser:
I. Checking mails and faxes. They need to give the reply within the day
based on priority. II. Checking port status and convey to concern department. III.
Checking the shipments documents and inform concern department. IV. Checking
daily production status to understand shipment status V. Checking shipment
schedule and raw materials production status VI. Follow-up with sample section
for different buyers sample VII. Follow-up with store for fabric and accessories
received VIII. Follow-up with the production manager for the production plan IX.
Follow-up with the commercial people L/C,BTB L/C and L/C amendment X.
Price quotation and delivery confirmation to the buyer XI. Reporting to marketing
and merchandising chief on the daily activities. XII. Reporting to executive
director on the important issue like various meeting, customer visits compliances
and code of conduct
Weekly activates of a merchandiser:
I. Meeting with the fabrics and accessories supplier. II. Meeting with the
buyer and buying houses. III. Prepare fabric and accessories requirement list,
checking with concern and passing it to supplier with proper specification. IV.
Prepare purchase order with approval and sign of proper authority. V. Issuing pro-
forma invoice with the approval and sign of the proper authority. VI. Providing
cost break-down to commercial department during L/C opening.
Monthly activate of a merchandiser:
I. Meeting with the production people. II. Meeting with the quality people
and pattern master.
Yearly activates of a merchandiser:

I. Yearly self-assessment on the performance based on number of buyers
handled, shipment quantity, CM charge negotiated, debit note settled with the
supplier.
3.9.22 My Activity:
As an Intern I am working as a trainee merchandiser in AJ Group. So I am
getting the opportunity to learn lots of things in practical. In this time I have done
different activities related to merchandising, production, store management,
sampling in this company.
3.10 Acceptable Quality Level (Aql):
Concorde Garments group has been working with 2.5% AQL for their best
quality service to their customers.
3.11 Policies & Compliance Of A J Fashions Ltd.
There are 12 major principles of A J FASHIONS LTD. Such as;
1. Laws and workplace regulations
2. Forced Labour
3. Child Labour
4. Harassment and Abouse
5. Compensation and benefits
6. Hours of Work
7. Discrimination
8. Helth and Safety
9. Freedom and Association
10. Environment
11. Custom Compliance 12. Security
3.12 Production Process and Technology:

Modern apparel manufacturing techniques have been adopted to ensure
optimum efficiency. The factory has the latest in labor saving and time efficient
machinery to enable it to compete in the world market. Style analysis, risk
analysis, layout planning and production targets based on Standard Minute Values
(SMV) are defined by the Industrial Engineering department to ensure that
planning is meticulous and shipments are on time. Production monitoring system
using bar coded tickets ensures accurate recording of work-in-progress and
provides management with live production data. This helps production
management to be proactive in correcting potential imbalances within the process
and provides invaluable data to monitor operators' efficiency.
3.13 Srategic Business Unites:

We have taken our manufacturing skills and expanded the knowledge and
management skills and have own various other strategic business units to produce
various products. We also have sound joint ventures with Chinese manufacturers
to produce Interlining. Each of the business units has kept to some degree of their
unique identities, which helps customers and staff to remember the long and
proud histories of AJ Group Ltd.
3.14 Accessories:
 Keeping in mind the need for quick delivery of accessories, Concorde Garments
Group formed Osman Accessories Ltd. (OAL) in 2005 to source high quality
accessories for itself and the emerging garments factories of Bangladesh;  OAL
is currently sourcing all required accessories from different accessories factories
under strict quality monitoring processes and supplying to the leading garments
industries.
3.15 C & F Agency:

We have our own C&F agency to help import and export our products. Our
C&F personnel are located at all regulatory port areas like Dhaka Airport, Dhaka
ICD, Chittagong Port, Benapole Port, etc. Having own C&F agency helps us
release imported goods quickly, at relatively competitive cost. This also helps
while exporting the goods. We also have our partnered transport agency to
transport our raw materials from various ports to our production units and export
the same to nominated ports. This reduces the hassle to wait for transportation in
case of urgency and during rush season.
3.16 Micsllenious Features:
 No child labor  Time card system  Employee notice board to keep them
aware of their rights and latest developments  Welfare officers constantly
training the employees about their rights, and other relevant issues facing them 
Loud speakers to make announcements if necessary  2% of the workers are
trained in using CPR  Floor mats provided to all employees with standing jobs 
Training center for giving necessary education to employee  Separate clean
toilets with for males and females with liquid soap and hand dryers  Lockers for
all employees to safely keep their valuables  “Water cooling” system to provide
workers a comfortable temperature to work in  About 4% of the workers are
trained in how to administer First Aid. Employee benefits:  No excess overtime 
Paid Maternity leave benefit as per Govt. law  Doctor’s room with full-time
doctor, nurse and 1 bed for every 500 workers  “Eid (religious festival for the
Muslims) Bonus” given during the two Eids of the year  Safe drinking water for
all employees (ground water that further goes through a Process of filtration) 
Childcare room with a bathroom, located near exit  Canteen with seating
arrangement for 30% of the workforce  “Dry Food” shop for all employees 
Clean and congenial working environment  Unused Annual Leave Payment 
Airy and well-lit workplaces  First Aid Box for every 100 workers .
3.17 Business Achivement Of The Group:

In our constant endeavors to improve our factory and conditions of our
workers, AJ Fashion Ltd has achieved the following high-level certifications in
the field of quality, ethical trade and social compliance: Certification Name
Certificate Global Group ISO 14001 ISO 9001:2008 WRAP Sedex GSV WCA
3.18 Aj Fashion Social Responcibility: 

Green (environment) initiative:
AJ Fashion Group is one of most renowned environment friendly factory
production facility in Bangladesh. Their environment initiatives have been well
recognized not only by other international business organization but also by
World Bank & Asian Development Bank as well. Few examples are:  More than
280,000 liters of treated effluent water is being used for 8000 worker’s toilet flush
every day, saving 75M liters of underground water every year.  250,000 square
feet roof top is being used to collect approx. 45 million liters of rain water which
is later used in textile wet processing without utilizing the valuable underground
water and saving extra chemicals of water softening
Social compliance - code of conduct:

AJ Fashion is a responsible and ethical apparel producer and embodies,
both in spirit and practice, internationally established codes of social
accountability and ethical business practices. It recognizes and respects cultural
differences and employs individuals solely on the basis of their qualification for
the job. It identifies and works with suppliers and buyers who as individuals and
in the conduct of their business abide by local laws and have ethical standards
compatible to its own.
CHAPTER 4
SOWT analysis of AJ Fashion Ltd.
4.1 SOWT analysis of AJ Fashion

The main objective of any business institution is to earn profit and top survive in
the market with a better competitive position. AJ Fashion Ltd. is not an exception.
The main objective of this company is also earning profit.
It is known that, Profit = Revenue – Expense. With the changing business
environment profit, revenue and expense also change. There are many factors
which force to change the profit, revenue and expenses.
4.1.1 Strengths of AJ Fashion Ltd.
 Imported machinery.
 Strong market image.
 Awareness of product.
 Strong industrial group.
 Good know how about the textile business. This is improving the progress
of the company.
 Cheap labour is available to AJ Fashion Ltd. which is reducing the per unit
cost.
 The products are at compatible prices.
 Cotton is also available at cheaper rates.
 AJ Fashion Ltd. has well qualified staff.
 AJ Fashion Ltd. have high financial resources. So they can invest in other
textile related products.
 AJ Fashion Ltd. has its better market information system.
 AJ Fashion Ltd. have good relations with foreign buyers.
4.1.2 Weakness of AJ Fashion Ltd.

 De motivated staff.
 Centralized decision making
 .Centralized control.
 Lack of HR resources development.
 Delivery time is more due to this the shipment are delayed.

 Lack of promotional activities. AJ Fashion Ltd. should do the more effort
in promotion.
 Non-professional attitude. This is decreasing efficiency.
4.1.3 Opportunities of AJ Fashion Ltd.
 Potential in the market.
 Govt. is also providing lot of incentives to the exporters.
 The decreasing interest rates on the loans.
 AJ Fashion Ltd. has opportunity to explore new international and growth
oriented markets for the exports of fabric.
 AJ Fashion Ltd. can play the role of agent. So they can save the
commission which is paid to the agents.
 AJ Fashion Ltd. can better the marketing techniques.
 The company should import the latest technology to decrease the per unit
cost of the production.
 The company should make efforts to improve the technical skills of the
labour and the employees which will improve the overall efficiency and
productivity of the organization.
4.1.4 Threats of AJ Fashion Ltd.

 The unreliable agriculture sector.
 Govt. strict policies about the textile sector.
 Political instability is also a major threat.
 The AJ Fashion Ltd. will face tough competition in international markets.
 China, Thailand and Indonesia are the emerging giants in textile.
 AJ Fashion Ltd. has a threat from the domestic and the international
competitors.
 New entrants.
 Increasing the cost of production.
 Price fluctuations.
 Devaluation of US $.
CHAPTER-5
5.1 Recommendation:
Some advices for improving our RMG sectors are:
5.1.0 Enhancing workforce:
workers must be trained in order to get better result.
5.1.1 Economic and political stability:
Economic and political stability must be brought for the success of RMG industry.
5.1.2 Infrastructure and Communication Development:
Infrastructure and communication should be developed. Because of it not only

handicraft industry but also other small industries are getting affected. If the
communication system can be developed then the products of rural handicrafts
can reach cities and go beyond our country.
5.1.3 Improvement of product quality:
High quality but affordable products must be produced in order to rule overseas
and national market .
5.1.4 Online Marketing:
Now a days is all about digitalization. People are getting familiar with online .they
are spending much time on the virtual world. So online marketing has become a
weapon for the businessman’s. they are selling and displaying their products in
online. Again people are taking it as a buying source. Now days people want to
buy from online stores. So handicraft products must be marketed online. Because
by online marketing products get maximum promotion. And so people will trend
to buy this things. Again by online marketing we can display this kind of products
to outside world also. Many leading brands tend to find products online. Thus our
handicraft products can get international value.
CHAPTER 6:
GARMENTS WORKERS IMPACT IN BANGLADESH
6.1 Introduction:
Bangladesh is a developing country with few large and some moderate size
industries of different kinds. Among these, the fast growing ready-made garment
(RMG) industries are the most prospective ones, earning the major portion of the
country’s foreign currency and providing employment to a large number of
female and male workers. These industries made and can continue to make a
substantial contribution to the economic development of the country. The
substantial and conspicuous factors of RMG industry in Bangladesh are cheap
labor cost, safe investments relative to other competing countries, congenial
working atmosphere, government support, and a dynamic private
entrepreneurship. All these factors have easily patronized Bangladesh to become a
global partner in the garment business.
Moreover, the industry has become a vehicle for further industrialization of
the country. Other industrial sectors grow on the basis of an evolving garment
industry. In spite of having an impressive performance, the RMG industry has
several problems, especially in terms of frequent conflict and unrest between
workers and management. Frequent unrest is a very common pervasive incident
around the garments sector which makes all walks of people (workers, owners,
buyers, investors) apprehensive towards its potentiality. Daily unrest has become
a common feature in the RMG industry. There is a growing concern that unrests
are usually ignored by the owners of the RMG factories.
6.2 PURPOSE OF THE STUDY:
The objectives of this study are below:
 To examine the level of garments stuff.  To identify the reason behind

worker unrest.  To suggest how to solve worker conflict as soon as possible.
A garment factory in Dhaka that produces shirts and sweaters for the global
market. Bangladesh, once poor and irrelevant to the global economy, is now
an export powerhouse, second only to China in global apparel exports, as
factories churn out clothing for brands like Tommy Hil.er, Gap, Calvin Klein
and H&M. Global retailers like Target and Walmart now operate sourcing
offices in Dhaka.
6.3 Good deal for garment workers to benefit Government in 2014 in poll-
bound Bangladesh
Bangladesh's ruling Awami League-led coalition has averted one crisis.

They have enough trouble anyway, the most important being the fallout of the
war-crimes trials leading to fundamentalist violence and continuous Opposition
strikes to force a return to the nonparty caretaker to conduct Parliament polls. The
strikes affect commerce and exports.
Prime Minister Sheikh Hasina was facing another unrest, affecting the
ready-made garments industry. Garments fetched Bangladesh $19.2 billion last
year, around 79% of its total export earnings of $24 billion.
With remittances by expatriate workers mounting to $14 billion in the last

fiscal year, its economy is doing well: $15 billion in reserves, a current account
surplus of $2.57 billion and the taka appreciating against the US dollar by 15% in
a year.
6.4 Wages a Battle
Fig. Tazreen Fashions factory
Fig. Rana Plaza
Good harvests have reduced food imports. So, Bangladesh's much-touted

recent achievements are built wholly on its very-hard-working peasants and
workers.
That is also why this year's labour unrest in its garment factories, where the
workforce is almost 80% women, was bad news for the government and the
country. The minimum monthly wage for garment workers has been a paltry taka
3,000. It was last raised in 2010 just after the Awami League had come to power.
Prior to that, garment workers were being paid a measly taka 1,650 per
month — just over taka 50 a day —for an eight-hour shift that would often stretch
into 10-12 hours. With inflation rising and garment business booming on growing
export orders, workers hit the streets demanding that their monthly wage be raised
to taka 8,100 per month.
6.5 Tinderbox Sweatshops
The labour unrest followed a string of accidents in which many garment
workers were killed. These revealed the hazardous work conditions in these
sweatshops. The collapse of a factory called Rana Plaza at Savar, near Dhaka,
killed more than 1,000 workers and left many more maimed and injured. In
November last year, 111 workers were burned to death at Tazreen Fashions
factory.
These incidents led to a global outcry against unsafe working conditions in
Bangladesh's garment industry.
A recent British parliamentary group's report on Bangladesh's garments
sector said unless the issues of skill development, safety and better working
conditions were addressed, the country would miss out on investments from
outside.
Since the Rana Plaza collapse earlier in the year, worker unrest has spread across
the country. It has affected industrial areas like Savar and Gazipur. Workers in
thousands would block highways, smash vehicles, .ht pitched battles with police
and damage their own factories.
With 3.6 million workers in 5,400 garment factories, the government
realised the importance of the garment worker vote, and decided to intervene. A
wage board was set up and a minister with long trade union experience was tasked
to supervise its progress.
The Awami League is especially sensitive to this factor, after losing the
city corporation in its erstwhile stronghold of Gazipur, which has many garment
factories. The wage board recommended taka 5,300 as the minimum monthly
wage — somewhere between what they are paid and what they have asked for.
The garment factory owners were not amused and their representatives
walked out of the wage board's final meeting where the award was announced.
Both the manufacturers associations threatened to go to court against the wage
board recommendation. They said the most they can offer is taka 4,500, and
anything more would ruin the industry and make it non-viable.
6.6 Cheap Labour the USP
Higher wages would specially hit small and medium garment units, around
70% of the total, says the manufacturing lobby. The chief of one lobby, Atiqul
Islam, says the Bangladesh garment industry has alread lost 37% competitiveness.
One day of strike leads to taka 2 billion loss for the industry while power,
interest rates and other elements make Bangladesh's business environment more
uncertain than competitors like China, Vietnam and India. In recent months, due
to Opposition strikes and labour unrest, all these competitors, including India,
have gained at Bangladesh's expense. Orders have shifted as Bangladesh exporters
struggled to keep schedules.
But finally, after much negotiation, the industry lobby has agreed to
implement the wage board award. The workers would surely be happy with the
near doubling of their wages and it is a great relief for the Awami government to
see the end of the unrest, with a few months to go for parliament polls.
Despite higher wages, if Bangladesh can hold its own in the hypercompetitive
garment industry, it will be a victory for everyone. And the Awamis can go to
polls with at least one positive story to tell.
6.7 FURTHER RESEARCH:

This study indicates that further in-depth research is needed to evaluate the
effectiveness of labor laws of Bangladesh to make labor union effective and
efficient to address the rights of all stakeholders.
CHAPTER: 7
7.1 Conclusion:
The market is becoming more competitive day by day but AJ FASHIONS
believes that with the innovative planning and strong management team, AJ
GROUP can boost its position in the market. It is the innovations and changes
with time that have kept the company on course. The group believes that all these
efforts described above, can help fulfill its vision. ‘To be the most regarded
company in Bangladesh by 2015”
CHAPTER 8
REFERENCE/BIBLIOGRAPHY AND APPENDIX
1. Cooper, Donald R. Schindler, Palmer. S. (2009) Business Research

Methods (9th Ed). McGraw Hill. 2. Dessler, G. (2007). Human Resource
management. Prentice Hall Inc. 1. Itcilo (2008) Employment, labor
relations and working conditions in EPZs Labor legislation and labor
relations (04-03-2014):
http://training.itcilo.it/actrav_cdrom1/english/global/iloepz/reports/epzre/2
_2.htm 2. Iqbal J. (2008). Bangladesh and then garment sector (03-04-
2014): http://www.marxist.com/bangladesh-garments-sector.htm 3.
Kamaluddin, S. (2007). Dhaka Diary (04-04-2014):
http://www.newagebd.com/detail.php?date=2012-05
3&nid=11124#.U1bUq_mSz6M 4. Reaz-Bin-Mahmud (2013). Skills
development in Bangladesh RMG sector. Retrieved on January 23, 2013
from the World Wide Web: http://www.newstoday.com.bd 5. Prendergast,
Canice ; Topel, Robert H.; (2009), Favoritism in organization. The Journal
of Political Economy, Vol. 104, No. 5 (Oct., 1996), pp. 958-978 6. Wang,
M., Shieh, C-J. (2006). the relationship between service quality and
customer satisfaction: the example of CJCU library. Retrieved from
www.tarupublications.com/journals/jios/full-text/JIOS.../jios134.pdf 7.
Smith, Amy K., Bolton, Ruth N. and et al. (1999). A Model of Customer
Satisfaction with Service Encounters Involving Failure and Recovery.
Retrieved from
www.ruthnbolton.com/Publications/ServiceFailureandRecovery.pdf 1.
Concorde Garments Group (03-03-2014):
http://www.concordegarments.com/ 2. Textile bulletin (4-04-2014):
http://textilebulletin.com/present-situation-rmg-sector- bangladesh-2013/
3. Educarnival Pedia (5-04-2014):
http://edupedia.educarnival.com/contribution-of-rmg- industry-in-
bangladesh-economy-and-mfa-phase-out-effect/ 4. CGG Certificated and
awardees (05-04-2014):
http://www.concordegarments.com/index.php/garments-
units/achievements Books Journals Websites: 5. EPB (05-04-2014):
http://www.epb.gov.bd/download_content.php 6. Textile School (01-03-
2014):
http://www.textileschool.com/articles/174/merchandising
7. Bangladesh Sangshad Sankhtha (15-04-2014):
http://www1.bssnews.net/newsDetails.php?cat=2&id=402484&date=2014-
04-13
8. Textile Learner (05-04-2014):
http://textilelearner.blogspot.com/2012/02/process- flow-chart-of-
garments.html 9. Fashion Incubator (05-04-2014):
http://www.fashion-incubator.com/archive/the-13- different-kinds-of-
samples/ 10. Sedex (04-05-2014): http://www.sedexglobal.com/ethical-
audits/smeta/ 11. RISE (03-04-2014):
http://risebd.com/2013/11/22/minimum-wage-2013-basic-goes- down/ 12.
The Daily star (02.04.2014):
http://archive.thedailystar.net/forum/2012/August/rmg.htm
APPENDIX: 01
RESEARCH QUESTIONARY:
Section 1: Following are some questions which show will how run an Export
oriented garments factory and why worker unrest happening in Bangladesh based
on Concorde Garments Group. Circle one number per statement using the
following scale. . 07.01: RESEARCH QUESTIONARY Opinion Score Strongly
Agree 1 Agree 2 Neutral 3 Disagree 4 Strongly disagree 5 Qtn.Sl. Question 1
APPENDIX: 02
SURVEY OUTCOMES Sl no. ID no. Name Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
1 CGG12290 MD.ABU BAKKAR SIDDQUE 2 3 1 1 1 1 1 3 2 CGG13323 MD
HABIBUR RAHMAN 3 4 1 1 2 2 1 1 3 CGG32290 MD.ANOWAR 2 3 1 1 1 1 1
2 4 CGG23343 MD MIZANUR RAHMAN 3 2 2 2 2 2 3 3 5 CGG12252 RIPON
HOSSAIN 2 2 1 1 2 2 2 3 6 CGG12262 MD MOKLASUR RAHMAN 2 2 1 1 1 1
2 1 7 CGG72290 MD. MEZANUR ROHMAN 2 2 2 3 1 1 1 2 8 CGG23383
MOHAMMAD ABDUR RASHID 3 1 2 2 2 1 3 3 9 CGG12292 ABDUL ALIM 2
1 1 2 1 2 1 3 10 CGG23310 MOZAMMEL 3 2 2 1 2 3 2 1 11 CGG22212 KABIR
HOSSAIN 2 3 2 4 2 4 2 1 12 CGG32212 JOHIRUL 2 2 3 3 2 1 2 2 13
CGG222132 SHANTOSH 2 4 2 3 1 3 1 3 14 CGG122142 OMAR FARUQ 2 3 1
3 1 3 1 1 15 CGG233153 GOUTAM 3 2 2 1 3 4 2 1 16 CGG222162 RUHUL
AMIN 2 1 2 1 2 4 2 2 17 CGG222172 MONIRUZZAMAN 2 1 2 1 2 4 2 3 18
CGG233183 MONIR UZ ZAMAN 3 1 2 1 2 1 2 2 19 CGG222192 MD ABDUL
HALIM 2 1 2 1 2 3 3 1 20 CGG122202 ABDUL AWAL 2 3 1 1 2 3 1 3 21
CGG533213 MD MASHUD KARIM 3 2 5 1 4 2 4 1 22 CGG122222 SHARIFUL
ISLAM 2 3 1 1 2 4 2 1 23 CGG122232 MOKTER HOSSAIN 2 2 1 1 1 2 2 1 24
CGG122242 MASUM 2 2 1 1 2 3 2 1 25 CGG122252 NURUL ISLAM 2 2 1 1 1
1 2 1 26 CGG262290 MD. ABUL KALAM AZAD 2 2 1 1 1 1 2 2 27
CGG122272 AMIR HOSSAIN 2 2 1 1 1 1 1 3 28 CGG533283 GAUTAM KAR 3
2 5 1 4 1 4 3 29 CGG122292 NAZMUL 2 2 1 1 1 3 1 3 30 CGG111301
MOSHAROF 1 1 1 1 1 3 1 3
APPENDIX: 03
Employee’s Interview Questionnaire: (used for Job Analysis) Job Analysis
Questionnaire A. Employee Data: Name: Employee ID: Job Title: How long have
you been in your current position: year month Supervisor's Name: Supervisor's
Title: B.General Education & Experience i) Education: Class 8 Masters/Post-
Graduation SSC Bachelor's Degree HSC Master's Degree Training: Others: ii)
Previous Job Experience: C. Job Description: Employee's Signature: Date: D.
Special Skill required for the job: E.How many people report directly to you?
None 2-4 4-8 8-12 12-15 15-18 18-22 22-26 26-30 30 or more
APPENDIX: 04
Supervisor’s Interview Questionnaire: (used for Job Analysis) Name ID
Problem Solving & People Ineraction (of 100) P.S P.I P.S Rating P.I Total No. JD
Weightage % Rating Rating Rating Weightage Weightage Weightage
WeightagePos(of 10) ind(of 10) ind (of Pos(of PS IND % PS POS % PI IND % PI
POS % 1 0 0 0 0 2 0 0 0 0 3 0 0 0 0 4 0 0 0 0 5 0 0 0 0 6 0 0 0 0 7 0 0 0 0 8 0 0 0 0
9 0 0 0 0 10 0 0 0 0 11 0 0 0 0 12 0 0 0 0 13 0 0 0 0 14 0 0 0 0 Total 0 0 0 0
Signature of line supervisor: Signature of reviewer:
ACRONYMS:
1. FY= Fiscal Year.

2. BGMEA= Bangladesh Garment Manufacturers and Exporters Association.
3. RMG= Ready-Made Garments.
4. MFA= Multi Fibre Agreement
5. WRAP=Worldwide Responsible Apparel Production
6. WCA = Workers Conditions Assessment
7. c&f=means carrying and forwarding agency
8. CTPAT=(Customs-Trade Partnership against Terrorism
9. ILO=International Labor Organization
10. Workers Conditions Assessment (WCA)
11. Global Security Verification (GSV)
12. CTPAT (Customs-Trade Partnership against Terrorism)
13. CAD (computer-aided design)
14. UNS=unique selling proposition
15. TCA = Textile and Clothing Agreement.
16. BGM & EA = Bangladesh Garments Manufacturing and Exporters
Association.
17. ROO = Rules of Origin.
18. CBW = Central Bonded Warehouse.
19. CBA = Central Bonded Association.
20. MFA = Multi fiber Agreement.
21. FBCCI = Federation Bangladesh Chamber of Commerce and Industry.
22. WTO = World Trade Organization
23. TMB = Textile Monitoring Body
2.4 EU = European Union.
25. SAARC = South Asian Association for Regional Co-operation.
26. LDC = Least Developed Countries.
27. GATT = General Agreement on Tariff and trade.
28. BCDB = Bangladesh Cotton Development Board.

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Export oriented RMG sector and workers impact study on AJ Fashion of Bangladesh 1

EXPORT ORIENTED RMG FACTORY STUDY ON AJ FASHIONS LTD

However, nowadays HR Department is considerate as the Mutual Bridge of

Bangladeshi Garment Industry is the largest industrial sector of the

1.2 Origin of the Study

1.3 Objectives of The Study

1.4 Methodology of the Study

5. AJ Fashion Store, Cutting, Sewing, Sample, Finishing section.

2.1 Present Situation of RMG Sector in Bangladesh

2.2 Overview of the RMG Sector:

cost of production in other competing countries including China has soared

Ready Made Garments (RMG) are mass-produced finished textile products of

2.4 Overview of RMG industry of Bangladesh

Leading RMG industries of our country are:

Code of Conduct (COC)

5. Closing meeting with factory management (discussed audit findings and

2.5 Major competitors

Table 1:Bangladesh vs Vietnam as export competitor

Bangladesh, one of the post-China emerging economies, has already started

priorities right. Owing to the economy's structural problem, it is hardly surprising

2.5.1 Impact on society

understanding on how important the labor intensive apparel industry is for

17 years 7.4 million

14 years 4.7 million

13 years 3.2 million

11 years 1.3 million

Chi ld domestic workers 421,000 Percentage of children (aged 5-14 years)

2.8 Education Growth

Figure 2: Urbanization level of Bangladesh

2.9.2 Future prospect

Figure 5:RMG vs other sectors contribution

3.3 Customer Reference Of AJ Group

- NAME AJ FASHIONS LTD.

ADDRESS 234/4, KACHUKHAT, DHAKA CANTONMENT.

19th October, 1998.

TOTAL = 42000 SQFT.

HEIGHT OF 9.5 FEET

SPACE OFFICE (GROUND+2ND Floor) :

TOTAL SPACE OF AREA : 42,000

TOILET MA FEM STA TOT

MINIMUM 400 DZ. PER STYLE

3.4 List Of Buyers Of AJ Group

3.5 Production Capaciry:

3.7 AJ Fashion revenue ratio:

Mens Bottom (Long Pant)

Mens Bottom (Shorts)

Ladies Bottom (Shorts)

3.9 DIFFERENT DIPERTMENT’S ACTIVITIES IN AJ FASHION LTD

3.9.1 LIST OF DEPARTMENT OF AJ GROUP:

3.9.2 INFRASTRUCTURE OF A J FASHIONS LTD.

3.9.3 Organizational Structure

Manager DGM Additional Chief Production

Assistant Assistant Assistant Assistant

Quality Jobber Shift In Spinning

3.9.4 Finance and Commercial Department:

3.9.5 Activities of this department:

 Help in Decision Making. AJ FASHION financial accounting system records