Progressive Bundle System of Garments Production | Traditional Garment Production System

The most common and traditional system of garment production is progressive bundle. Still now it has been used more than other systems.

This system of apparel  production is so called because the bundles of garment parts that are forward sequentially from one process to another. There need to complete a specific operation or component. For example neck join is a single process, through this kind of system an operator will join neck of full bundle then it will forward to another operator.


This kind of system has been called as its name from the bundles of garment parts that are moved sequentially from one to another operation. It is often referred to as the traditional process, has been widely used by the manufacturers for several decades and still in today. The American Apparel Manufacturers Association (AAMA) Technical Advisory Committee (1993) reported that 80 percent of the manufacturers use it. They also predicted that use of this type of system would decrease as firms seek more flexibility.


Bundle sizes may range from two to a hundred parts. Some industries operate with a standard bundle size of particular garments, whereas others vary bundle sizes according to cutting orders, fabric shading, size of the pieces in the bundle, and the operation that is to be completed. Some of them use a dozen or multiples of a dozen of garments because their sales are in dozens. Bundles of garments are assembled in the cutting room where cut parts are matched up with similar parts and bundle tickets.

Bundles of cut parts are transferred to the sewing section to concern operators and they are scheduled to complete the production. One operator is expected to perform the same operation on all the pieces in the bundle, retie the bundle, process coupon, and set it aside until it is picked up and moved to the next operator. In this process may require a high volume of work in process cause of the number of units in the bundles and the large buffer of backup that is needed to ensure a continuous work flow for all operators.

It might be used with a skill center or line layout depending on the order that bundles are advanced through production. Each style may have different processing requirements and thus different routing. Routing identifies the basic operations, sequences of  production, and the skill centers where those  operations are to be performed. Many of the operations are common to multiple styles in that case work may build up waiting to be processed.


Advantages of  progressive bundle system:
The of this system is of making may depend on how the production system is set up and used in a plant. It may allow better utilization of specialized machines, as output from one special purpose automated machine may be able to supply several operators for the next operation. Small bundles of fabrics allow faster throughout unless there are bottlenecks and extensive waiting between operations.

Disadvantages of progressive bundle system:
This processing type is driven by cost efficiency for individual operations. The operators perform the same operation on a continuing basis, which allows them to increase their speed and productivity but who are compensated by piece rates become extremely efficient at one piece operation and may not be willing to learn a new style because it reduces their efficiency and earnings. Individuals that work here  are dependent on other operators and the final product.

Slow processing, absenteeism, and equipment failure may also cause major bottlenecks within the system. Large quantities of work in process are often characteristic this may lead to longer throughput time, poor quality concealed by bundles of fabrics, large inventory, extra handling, and difficulty in controlling inventory of whole processing.
 

Progressive Bundle System of Garments Production | Traditional Garment Production System

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The most common and traditional system of garment production is progressive bundle. Still now it has been used more than other systems.

This system of apparel  production is so called because the bundles of garment parts that are forward sequentially from one process to another. There need to complete a specific operation or component. For example neck join is a single process, through this kind of system an operator will join neck of full bundle then it will forward to another operator.


This kind of system has been called as its name from the bundles of garment parts that are moved sequentially from one to another operation. It is often referred to as the traditional process, has been widely used by the manufacturers for several decades and still in today. The American Apparel Manufacturers Association (AAMA) Technical Advisory Committee (1993) reported that 80 percent of the manufacturers use it. They also predicted that use of this type of system would decrease as firms seek more flexibility.


Bundle sizes may range from two to a hundred parts. Some industries operate with a standard bundle size of particular garments, whereas others vary bundle sizes according to cutting orders, fabric shading, size of the pieces in the bundle, and the operation that is to be completed. Some of them use a dozen or multiples of a dozen of garments because their sales are in dozens. Bundles of garments are assembled in the cutting room where cut parts are matched up with similar parts and bundle tickets.

Bundles of cut parts are transferred to the sewing section to concern operators and they are scheduled to complete the production. One operator is expected to perform the same operation on all the pieces in the bundle, retie the bundle, process coupon, and set it aside until it is picked up and moved to the next operator. In this process may require a high volume of work in process cause of the number of units in the bundles and the large buffer of backup that is needed to ensure a continuous work flow for all operators.

It might be used with a skill center or line layout depending on the order that bundles are advanced through production. Each style may have different processing requirements and thus different routing. Routing identifies the basic operations, sequences of  production, and the skill centers where those  operations are to be performed. Many of the operations are common to multiple styles in that case work may build up waiting to be processed.


Advantages of  progressive bundle system:
The of this system is of making may depend on how the production system is set up and used in a plant. It may allow better utilization of specialized machines, as output from one special purpose automated machine may be able to supply several operators for the next operation. Small bundles of fabrics allow faster throughout unless there are bottlenecks and extensive waiting between operations.

Disadvantages of progressive bundle system:
This processing type is driven by cost efficiency for individual operations. The operators perform the same operation on a continuing basis, which allows them to increase their speed and productivity but who are compensated by piece rates become extremely efficient at one piece operation and may not be willing to learn a new style because it reduces their efficiency and earnings. Individuals that work here  are dependent on other operators and the final product.

Slow processing, absenteeism, and equipment failure may also cause major bottlenecks within the system. Large quantities of work in process are often characteristic this may lead to longer throughput time, poor quality concealed by bundles of fabrics, large inventory, extra handling, and difficulty in controlling inventory of whole processing.
 

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Garment Production Systems | Production Systems in a Typical Apparel Manufacturing Industry

From the process flow chart of textile processing we have already known garments making is the final stage of any textile material. This is the final stage where garments are being ready to wear by the customers. Garment making is the key objective of any textile processing so we can treat this as much valuable portion of textile production. It includes the production of finished cloths. This is an integration of materials handling, production processes, personnel, and equipment that directs work flow and generates finished goods.

The below mentioned types of systems commonly used for bulk production:

To get more successful result each and every system requires an appropriate management philosophy, materials handling methods, floor layout for spreading, , cutting & sewing,  and employee training. Firms may combine or adapt these systems to meet their desired quantity they need. Industries either use only one system or a combination of two or more for a single line, or different systems for different lines in the same unit.

Progressive Bundle System:

This system of apparel  production is so called because the bundles of garment parts that are forward sequentially from one process to another. There need to complete a specific operation or component. For example neck join is a single process, through this kind of system an operator will join neck of full bundle then it will forward to another operator.

Overhead or Unit Production System

This kind of system is a type of line feeding that uses an overhead transporter system to forward  parts from work station to work station for assembly. All the components for a single garment to be advanced through the production line together by means of a hanging carrier that travels along an overhead conveyor.

Modular Production System

It is a contained, manageable work unit that includes an empowered work team, equipment, and work to be executed. Modules frequently operate as mini-factories with teams responsible for group goals and self-management. The number of teams in a plant varies with the size and needs of the firm and product line in factories.

Make Through System
Through this system only one man can make a garment alone with doing all task to complete the whole process.It is frequently done in tailors where the tailor even makes pattern or use common patterns to cut fabric and does finishing of the garment. Single person of tailor shops do all jobs from cut to pack. In this system tailors are not depended to others.

Section Production System
This system is similar to the traditional progressive bundle system. But the difference is that, instead of one line, work is divided into multiple sections. Machines of similar operations are clubbed together instead of spreading over in all lines. For example, when a man’s formal shirt is being made in a section layout – collars, cuffs and sleeves are in the preparatory sections and then send to the assembly section. This system is popular to improve line balancing and utilization of human resources.

One Piece Flow System 

In this system an operator will responsible to make his operation as single garment basis and forward it to another operator. Instead of making a bundle of multiple pieces, bundle is made with all components of a single piece. Sewing machines in One-piece-flow system can be laid in a straight line or modular line. The key advantages of this system are less through put time, less WIP in the line.

Piece Rate Production System
This is one kind of  most popular production system in small and unorganized garment industries. Though people called it piece rate system, actually it is not a production system. Whatever Production system is used as mentioned above, when operators are paid according their works  that means how many pieces produced in an hour or a day, is named as piece rate system. Where workers gets value than traditional systems and will be paid day to day basis as well.

Combinations of Production Systems 

Factories may use first processing method for producing small parts combined with modular method. This reduces the investment in specialized equipment and reduces the team size needed. Industry consultants believe that a modular system combined with a unit system provides the most flexibility, fastest throughput, and most consistent quality. This would be particularly useful for large items such as overalls or heavy coats. The UPS would move the garment instead of the operators. Each manufacturer needs to determine what is best for specific styles.

Garment Production Systems | Production Systems in a Typical Apparel Manufacturing Industry

No comments

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From the process flow chart of textile processing we have already known garments making is the final stage of any textile material. This is the final stage where garments are being ready to wear by the customers. Garment making is the key objective of any textile processing so we can treat this as much valuable portion of textile production. It includes the production of finished cloths. This is an integration of materials handling, production processes, personnel, and equipment that directs work flow and generates finished goods.

The below mentioned types of systems commonly used for bulk production:

To get more successful result each and every system requires an appropriate management philosophy, materials handling methods, floor layout for spreading, , cutting & sewing,  and employee training. Firms may combine or adapt these systems to meet their desired quantity they need. Industries either use only one system or a combination of two or more for a single line, or different systems for different lines in the same unit.

Progressive Bundle System:

This system of apparel  production is so called because the bundles of garment parts that are forward sequentially from one process to another. There need to complete a specific operation or component. For example neck join is a single process, through this kind of system an operator will join neck of full bundle then it will forward to another operator.

Overhead or Unit Production System

This kind of system is a type of line feeding that uses an overhead transporter system to forward  parts from work station to work station for assembly. All the components for a single garment to be advanced through the production line together by means of a hanging carrier that travels along an overhead conveyor.

Modular Production System

It is a contained, manageable work unit that includes an empowered work team, equipment, and work to be executed. Modules frequently operate as mini-factories with teams responsible for group goals and self-management. The number of teams in a plant varies with the size and needs of the firm and product line in factories.

Make Through System
Through this system only one man can make a garment alone with doing all task to complete the whole process.It is frequently done in tailors where the tailor even makes pattern or use common patterns to cut fabric and does finishing of the garment. Single person of tailor shops do all jobs from cut to pack. In this system tailors are not depended to others.

Section Production System
This system is similar to the traditional progressive bundle system. But the difference is that, instead of one line, work is divided into multiple sections. Machines of similar operations are clubbed together instead of spreading over in all lines. For example, when a man’s formal shirt is being made in a section layout – collars, cuffs and sleeves are in the preparatory sections and then send to the assembly section. This system is popular to improve line balancing and utilization of human resources.

One Piece Flow System 

In this system an operator will responsible to make his operation as single garment basis and forward it to another operator. Instead of making a bundle of multiple pieces, bundle is made with all components of a single piece. Sewing machines in One-piece-flow system can be laid in a straight line or modular line. The key advantages of this system are less through put time, less WIP in the line.

Piece Rate Production System
This is one kind of  most popular production system in small and unorganized garment industries. Though people called it piece rate system, actually it is not a production system. Whatever Production system is used as mentioned above, when operators are paid according their works  that means how many pieces produced in an hour or a day, is named as piece rate system. Where workers gets value than traditional systems and will be paid day to day basis as well.

Combinations of Production Systems 

Factories may use first processing method for producing small parts combined with modular method. This reduces the investment in specialized equipment and reduces the team size needed. Industry consultants believe that a modular system combined with a unit system provides the most flexibility, fastest throughput, and most consistent quality. This would be particularly useful for large items such as overalls or heavy coats. The UPS would move the garment instead of the operators. Each manufacturer needs to determine what is best for specific styles.

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Historical Background of Garment Industry in Bangladesh | Current Data On Export of Garments(Woven and Knit)

Brief History:

Bangladesh is a developing country where textile and garment industries provide the single source of economic growth in its rapidly developing economy.

Textiles, Clothing and RMG cover about 77% of total exports. About 4 million people, most of them are women, work to this sector, earned 21.51 billion USD in the Fiscal Year 2012-13 (Source-Export promotion bureau).

Bangladesh started its first export oriented garment industry in 1977 as Desh Garments Ltd. Which was a joint venture with Daewoo (south Korea). Meanwhile many Bangladeshi’s took training for RMG business from Korea, then established new factories with local investors. Bangladesh was made its first shipment of woven garment in 1977. (Wikipedia, BKMEA Website)

Sixty percent of the export contracts of western brands are with European buyers and about forty percent with the American buyers. WTO declared Bangladesh as the 2nd Largest garment exporters after china in FY 2011-12, whereas it is becoming 2nd largest Denim exporters across the world but it is only 4.8% of the global RMG trade of $412 billion (Source-Wikipedia, seagroupbd & denimandjeans).

Contribution of Woven and knit  garment is almost similar, respectively 41% and 39% of total export, where 80 percent knit garment goes to Europe market and here retention is almost 60%. (BKMEA Website)

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 factories.

Bangladesh Textile and Garment Industry Highlights:

Bangladesh enters 2013 with a firm footing as the world's second largest garment exporter, raising hopes for a new wave of business despite turbulent times in parts of the globe.

The World Trade Organization (WTO)  declared Bangladesh as the second largest RMG exporter after China in 2010-11 when the country's export grew 43.36 percent year on year to $15.66 billion in spite of global recession in 2007-2008.

Bangladesh retained its position in the following fiscal 2011-12 by exporting garments worth $19.09 billion. And the outlook for the current fiscal is set to exceed $20 billion.Bangladesh now claims 4.8 percent of the global RMG trade of $412 billion.

According to McKinsey & Company, an international management-consulting firm, Bangladesh's apparel exports will reach $36 billion by 2020.But all these prospects appear to have been shaken by one fire tragedy in late November at Tazreen Fashions Ltd, where 112 workers were killed. This single incident exposed inadequate fire safety and poor working conditions that still exist in many factories.

On April 24 1137 textile workers factories making clothes for Western brands, were killed when a garment factory collapsed. The Savar building collapse was in the Rana Plaza complex, in Savar, an industrial corner 20 miles northwest of Dhaka, the capital of Bangladesh.The incident was widely covered worldwide mainly because of Bangladesh's position as the number two apparel exporter. The buyers are now pressing factory owners to improve working conditions, hike wages of workers, and ensure labour rights and other compliance issues.The strength of the country's apparel sector is well understood through its ability to supply high-end items to famous global brands such as Hugo Boss, Adidas, Puma, Tommy Hilfiger, G-Star, Diesel, Ralph Lauren, Calvin Klein, DKNY, Nike, Benetton and Mango. Currently, more than 30 percent of the total RMG export is high-end products.The primary textile sector also saw a wave of investments for increasing demands for fabrics. The sector with a total investment of over 4.5 billion pounds is now capable of supplying 90 percent of fabrics for the knitwear sub-sector and 40 percent of fabrics for the woven sub-sector.

The country has more than 5,500 woven garment factories, 1,700 knitwear factories and 1,300 spinning, finishing and dyeing factories. At present, the sector employs 3.5 million workers, 80 percent of whom are women.The country's 60 percent RMG products enter the EU, 23 percent goes to the USA, 4.8 percent to Canada and 12.1 percent to other destinations worldwide. Bangladeshi Knitwear is exported to 93 countries of the world where EU and the USA are the major importers.

According to data of Export Promotion Bureau, the RMG sector's contribution to the country's export was 3.9 percent in fiscal 1983-84, which now stands at nearly 80 percent. The core strength of the knitwear sector is its backward linkage. The entrepreneurs of the sector not only increased their stitching capacity overtime but also invested in the allied industry to augment the overall capacity of the total sector with the same pace. Over the period of time knitwear sector gradually became almost self sufficient in fabric and yarn. This improvement has become possible because of the integrated growth of spinning factories in line of the growth of country's stitching capacity and increased need of the yarn and fabric. As the export increased in the knitwear sector, the capacity of backward linkage also increased accordingly.The result is local suppliers can provide now 95% of the total fabric requirement of the sector (source: BTMEA).

The growth of spinning mills also stepped with the growth of knitwear exports. In 2010-11 total number of Yarn Manufacturing Member Mills was 383, whereas Fabric Manufacturer Member Mills was 743.As of now the total investment in the backward linkage in knitting, dyeing and spinning industry is more than US$ 5.03 billion or € 4.00 billion.Knitwear is the highest contributor in terms of both gross and net export earnings. In 2010-11, the contribution of knitwear in national export earnings is 41.36%. This has resulted because of the backward linkage industry that has grown over time which helped the knitwear sector to have the higher value addition and therefore a much higher net retention rate. In addition to, relaxation of Rules of Origin (RoO) has accelerated the export growth.There are more than 261 composite knitwear factories in Bangladesh, currently listed with Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) who are supplying 95% of the knit fabric requirements of the sector.Local spinners supply yarn to fulfill around 75% of the total requirement of yarn for this industry.

The Bangladesh Knitwear industry is highly competitive where most of the knit composites have similar manufacturing capabilities. However, there are about 50 to 60 factories which are fully compliant and offer slight product differentiation and offer large capacity to the high volume buyers who source high quality goods at competitive prices within this region.

Over the decades the growth of knitwear sector has been incessant rising over 20% at CAGR base and continuously grabbing more portions in the export pie of Bangladesh. This recent robust growth is partly achieved owing to preferential support from the European Commission’s GSP & Relaxation of Rules of Origin (ROO) and the Duty Free Quota Free (DFQF) access granted by Canada, Australia, Japan and members of European Free Trade Agreement (EFTA). Along this growth momentum favorable policies from the government of Bangladesh in the form of export subsidies i.e. cash incentives also contributed greatly for making it the most attractive sourcing hub.

Statistical Data of Textile & Garment Industry of Bangladesh:

According to the statistics of BGMEA, BKMEA and Bangladesh Hand Loom Board, Bangladesh has the below established factory.

Industry Type    Total Established Industry

Spinning Mills    400

Weaving Mills    1500

Knit Composite    1700

Garment Industry    5600

Hand Loom Unit    0.183 Million

According to BGMEA, BKMEA and Export Promotion Bureau Bangladesh has exported the below in the previous 12 years.

Traditionally, the exports basket of Bangladesh has been leaning towards EU and the USA. So far the EU is the largest destination for Bangladesh knitwear, worth of value $7.3 billion with share of 69.74% exported in the year 2012-13 followed by the USA with $1.13 billion and a share of 10.79%. The one-stage transformation requirement of ROO in 2011 boosted signs for market penetration in the EU further; hence a growth of 46.63% in the FY 2010-11 over 2009-10 was remarkably noticeable.

Bangladesh RMG sector mainly comprises of Knit and woven garments competing vigorously to surpass each other for taking up the leadership yoke within the economy. It was in FY 2003-04 the knit garments for the first time exceeded woven wear and became the leader in terms of quantity exports with 91.6 million dozens as against 90.48 million dozens of woven garments. And from FY 2007-08, knitwear continues to widen the gap with woven both in terms of value and quantity. To the end the RMG sector, engine of our economic growth, has largely compensated with evolutionary mechanism in the overall designing of factory management - successfully leaving aside all the bottlenecks and making the economy a resilient one despite of natural disasters, poor infrastructure, weak governance and political turbulence.

Historical Background of Garment Industry in Bangladesh | Current Data On Export of Garments(Woven and Knit)

No comments

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Brief History:

Bangladesh is a developing country where textile and garment industries provide the single source of economic growth in its rapidly developing economy.

Textiles, Clothing and RMG cover about 77% of total exports. About 4 million people, most of them are women, work to this sector, earned 21.51 billion USD in the Fiscal Year 2012-13 (Source-Export promotion bureau).

Bangladesh started its first export oriented garment industry in 1977 as Desh Garments Ltd. Which was a joint venture with Daewoo (south Korea). Meanwhile many Bangladeshi’s took training for RMG business from Korea, then established new factories with local investors. Bangladesh was made its first shipment of woven garment in 1977. (Wikipedia, BKMEA Website)

Sixty percent of the export contracts of western brands are with European buyers and about forty percent with the American buyers. WTO declared Bangladesh as the 2nd Largest garment exporters after china in FY 2011-12, whereas it is becoming 2nd largest Denim exporters across the world but it is only 4.8% of the global RMG trade of $412 billion (Source-Wikipedia, seagroupbd & denimandjeans).

Contribution of Woven and knit  garment is almost similar, respectively 41% and 39% of total export, where 80 percent knit garment goes to Europe market and here retention is almost 60%. (BKMEA Website)

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 factories.

Bangladesh Textile and Garment Industry Highlights:

Bangladesh enters 2013 with a firm footing as the world's second largest garment exporter, raising hopes for a new wave of business despite turbulent times in parts of the globe.

The World Trade Organization (WTO)  declared Bangladesh as the second largest RMG exporter after China in 2010-11 when the country's export grew 43.36 percent year on year to $15.66 billion in spite of global recession in 2007-2008.

Bangladesh retained its position in the following fiscal 2011-12 by exporting garments worth $19.09 billion. And the outlook for the current fiscal is set to exceed $20 billion.Bangladesh now claims 4.8 percent of the global RMG trade of $412 billion.

According to McKinsey & Company, an international management-consulting firm, Bangladesh's apparel exports will reach $36 billion by 2020.But all these prospects appear to have been shaken by one fire tragedy in late November at Tazreen Fashions Ltd, where 112 workers were killed. This single incident exposed inadequate fire safety and poor working conditions that still exist in many factories.

On April 24 1137 textile workers factories making clothes for Western brands, were killed when a garment factory collapsed. The Savar building collapse was in the Rana Plaza complex, in Savar, an industrial corner 20 miles northwest of Dhaka, the capital of Bangladesh.The incident was widely covered worldwide mainly because of Bangladesh's position as the number two apparel exporter. The buyers are now pressing factory owners to improve working conditions, hike wages of workers, and ensure labour rights and other compliance issues.The strength of the country's apparel sector is well understood through its ability to supply high-end items to famous global brands such as Hugo Boss, Adidas, Puma, Tommy Hilfiger, G-Star, Diesel, Ralph Lauren, Calvin Klein, DKNY, Nike, Benetton and Mango. Currently, more than 30 percent of the total RMG export is high-end products.The primary textile sector also saw a wave of investments for increasing demands for fabrics. The sector with a total investment of over 4.5 billion pounds is now capable of supplying 90 percent of fabrics for the knitwear sub-sector and 40 percent of fabrics for the woven sub-sector.

The country has more than 5,500 woven garment factories, 1,700 knitwear factories and 1,300 spinning, finishing and dyeing factories. At present, the sector employs 3.5 million workers, 80 percent of whom are women.The country's 60 percent RMG products enter the EU, 23 percent goes to the USA, 4.8 percent to Canada and 12.1 percent to other destinations worldwide. Bangladeshi Knitwear is exported to 93 countries of the world where EU and the USA are the major importers.

According to data of Export Promotion Bureau, the RMG sector's contribution to the country's export was 3.9 percent in fiscal 1983-84, which now stands at nearly 80 percent. The core strength of the knitwear sector is its backward linkage. The entrepreneurs of the sector not only increased their stitching capacity overtime but also invested in the allied industry to augment the overall capacity of the total sector with the same pace. Over the period of time knitwear sector gradually became almost self sufficient in fabric and yarn. This improvement has become possible because of the integrated growth of spinning factories in line of the growth of country's stitching capacity and increased need of the yarn and fabric. As the export increased in the knitwear sector, the capacity of backward linkage also increased accordingly.The result is local suppliers can provide now 95% of the total fabric requirement of the sector (source: BTMEA).

The growth of spinning mills also stepped with the growth of knitwear exports. In 2010-11 total number of Yarn Manufacturing Member Mills was 383, whereas Fabric Manufacturer Member Mills was 743.As of now the total investment in the backward linkage in knitting, dyeing and spinning industry is more than US$ 5.03 billion or € 4.00 billion.Knitwear is the highest contributor in terms of both gross and net export earnings. In 2010-11, the contribution of knitwear in national export earnings is 41.36%. This has resulted because of the backward linkage industry that has grown over time which helped the knitwear sector to have the higher value addition and therefore a much higher net retention rate. In addition to, relaxation of Rules of Origin (RoO) has accelerated the export growth.There are more than 261 composite knitwear factories in Bangladesh, currently listed with Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) who are supplying 95% of the knit fabric requirements of the sector.Local spinners supply yarn to fulfill around 75% of the total requirement of yarn for this industry.

The Bangladesh Knitwear industry is highly competitive where most of the knit composites have similar manufacturing capabilities. However, there are about 50 to 60 factories which are fully compliant and offer slight product differentiation and offer large capacity to the high volume buyers who source high quality goods at competitive prices within this region.

Over the decades the growth of knitwear sector has been incessant rising over 20% at CAGR base and continuously grabbing more portions in the export pie of Bangladesh. This recent robust growth is partly achieved owing to preferential support from the European Commission’s GSP & Relaxation of Rules of Origin (ROO) and the Duty Free Quota Free (DFQF) access granted by Canada, Australia, Japan and members of European Free Trade Agreement (EFTA). Along this growth momentum favorable policies from the government of Bangladesh in the form of export subsidies i.e. cash incentives also contributed greatly for making it the most attractive sourcing hub.

Statistical Data of Textile & Garment Industry of Bangladesh:

According to the statistics of BGMEA, BKMEA and Bangladesh Hand Loom Board, Bangladesh has the below established factory.

Industry Type    Total Established Industry

Spinning Mills    400

Weaving Mills    1500

Knit Composite    1700

Garment Industry    5600

Hand Loom Unit    0.183 Million

According to BGMEA, BKMEA and Export Promotion Bureau Bangladesh has exported the below in the previous 12 years.

Traditionally, the exports basket of Bangladesh has been leaning towards EU and the USA. So far the EU is the largest destination for Bangladesh knitwear, worth of value $7.3 billion with share of 69.74% exported in the year 2012-13 followed by the USA with $1.13 billion and a share of 10.79%. The one-stage transformation requirement of ROO in 2011 boosted signs for market penetration in the EU further; hence a growth of 46.63% in the FY 2010-11 over 2009-10 was remarkably noticeable.

Bangladesh RMG sector mainly comprises of Knit and woven garments competing vigorously to surpass each other for taking up the leadership yoke within the economy. It was in FY 2003-04 the knit garments for the first time exceeded woven wear and became the leader in terms of quantity exports with 91.6 million dozens as against 90.48 million dozens of woven garments. And from FY 2007-08, knitwear continues to widen the gap with woven both in terms of value and quantity. To the end the RMG sector, engine of our economic growth, has largely compensated with evolutionary mechanism in the overall designing of factory management - successfully leaving aside all the bottlenecks and making the economy a resilient one despite of natural disasters, poor infrastructure, weak governance and political turbulence.

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