Overview of Bangladesh

Garment Industry
 Brief History of Bangladesh RMG

• Industry started to establish after liberation

• Partially shifted from Srilanka & some other
countries
• Reaz store established in 1960 as a tailoring shop
then turn into a garment factory after the liberation
war.
• First export oriented garment industry: Desh
Garments
 Brief History of Bangladesh RMG
Some important info.

•BGMEA established in 1976 by 8 members only

• In 1978 total factory was only 09.
•In 1982: 47 factories
•In 1985: 385 factories
•Currently: 5700 factories (BGMEA enlisted)
• Entered in Quota (MFA) in 1986
•Quota Phase out in 2005
 Year Number of Garment Factories Employment in Million Workers
1983-84 134 0.040

1984-85 384 0.115

1985-86 594 0.198

1986-87 629 0.283

1987-88 685 0.306

1988-89 725 0.317

1989-90 759 0.335

1990-91 834 0.402

1991-92 1163 0.582

Growth of 1992-93

1993-94
1537

1839
0.804

0.827

1994-95 2182 1.200

Bangladesh 1995-96

1996-97
2353

2503
1.290

1.300

RMG 1997-98

1998-99

1999-2000
2726

2963

3200
1.500

1.500

1.600

2000-2001 3480 1.800

2001-2002 3618 1.800

2002-2003 3760 2.000

2003-2004 3957 2.000

2004-2005 4107 2.000

2005-2006 4220 2.200

2006-2007 4490 2.400

2007-2008 4743 2.800

2008-2009 4925 3.500

2009-2010 5063 3.600

2010-2011 5150 3.600

2011-2012 5700 4.000

 Present status of Bangladesh RMG
Some important info.

• 12 billion US$ export

•Around 80% foreign currency earners
• Main market USA & EU
• Getting GSP facilities from EU
•Around 4 million people are working directly & 80%
of them are female
• Around 1.5 crore people are engaged with this
sector & sub sector
 Types of Garment Industry

• Woven Garment industry

• Knit Garment Industry
- Cut & Sew Knit garment industry
- Fully Fashioned knit garment industry
Present status of Bangladesh RMG

Lets go for a sharing session

on
SWOT Analysis of Bangladesh RMG
1.6. Challenges in RMG industries in Bangladesh:
- Dependency in American & European Market
- Rising Labor Cost
- Workers unrest
- Lack of skilled manpower
- Lack of Automation
- Shortage of Power & Energy
- High energy cost
- Infrastructural problem
- Lack of new market exploration
- Bureaucratic problems
- Corruption
- Lower productivity
- Limited port capacity
- Political Instability etc.

Prepared by Azharul Haque 8

 Departments of RMG industry
• Administration Dept.
• - Security
• - Discipline
• - Cleaning etc.
• H.R Dept.
• - worker & personnel appointment
• -Workers file management
• -Record keeping for migrated workers
• -Keeping record for working hours & over time
• -Performance appraisal
• -Promotion, Transfer & Punishment
• -Organize training etc.
 Departments of RMG industry
• Compliance Dept.
• -workers counseling
• -Ensure Human rights, local law & job security
• -Grievance handling
• - Maintain buyers’ code of conduct
• -Ensure safety issues
• -Factory auditing etc.
• Marketing & Merchandising Dept.
• Buyer sourcing
• Order handling
• Raw material sourcing
• Regular Buyers correspondence
• Maintain shipment procedure
• Handling after sales service etc.
 Departments of RMG industry
• Accounts Dept.
• Accounts handling
• Income & Expenditure follow up
• Budgeting
• Salary sheet preparation
• All types of payment etc.
• Commercial & Banking dept.
• All banking activities
• Import-Export Management
• C&F & Customs activities
• License renewal
• Documentation for shipment etc.
 Departments of RMG industry
• Store dept.
• All purchase
• Goods received from suppliers
• Inventory management
• Goods delivery to production dept.
• All stock goods keeping & Clearing etc.
• Quality dept.
• Ensure quality in store
• Ensure quality in all steps of production
• Ensure quality in sub contracting
• Maintain buyers AQL
• Ensure products quality & Safety
• Pre final inspection
• Support to final inspection etc.
 Departments of RMG industry
• Industrial Engineering dept.
• Work study
• Work engineering
• Line layout
• Line balancing
• Target setting
• Efficiency calculation
• Production planning etc.
• Maintenance dept.
• Mechanical work
• Electrical work
• Civil work etc.
 Departments of RMG industry
• PDS Dept.
• Pattern Making
• Sample development
• Designing activities
• Support to production dept. etc.
• Production dept.
• Cutting
• Embellishment
• Sewing
• Washing
• Finishing
• Packing etc.
Organogram of a garment industry
Managing Director
↓
Board of Directors
↓
General Manager
↓
Departmental Managers/ In charges
↓
Departmental officers
↓
Departmental Executives
↓
Junior Departmental workforce
Organogram of Production Department

Production Manager
Supply Chain of Procedures
Pre-Order

Post-Order
Question???
Thank You