On request of textile and apparel industry, Ministry of Textile Industry got approved necessary funds from EDF Board for conducting productivity benchmarking study of various sub-sectors of textile industry in 2006.

M/s Werner International Consultants, USA were appointed as consultants for conducting this study.

APTMA signed TORs with consultants and coordinated study for the sub-sectors like Spinning & Weaving.

Study for other sub-sectors was coordinated either by respective association or Werner had contacted the willing companies directly.

To identify the benchmarking data which forms the optimum targets to be achieved under the present operating conditions within a product mix.

Comparison of the companies’ performance with their main competitors and with best international practices.

Provision of quantifiable measure for the parameters in terms of present and expected performance.

To conduct survey to measure the operational and labour performance of the companies.

Contd………

To do SWOT analysis of companies resulting in a strategic profile for them.

To use the benchmarking analysis for seeking answers of the most important questions and to identify the opportunities to improve the operational performance of each company i.e. productivity efficiency, labour force, quality, product development and use of technology.

Provision of detailed analysis regarding manufacturing capabilities and potentials to companies for improvement of their performance.

Benchmarking study of 10 sub-sectors was to be conducted and 08 factories were to be included in each sub-sector.

The names of mills were provided by the respective associations.

Study of six sub-sectors has been completed and study of four sub-sectors is yet to be done:-

SpinningSpinning WeavingWeaving Knit wearKnit wear (processing and making-up)(processing and making-up) Woven garmentsWoven garments TowelTowel (weaving and processing )(weaving and processing ) Denim• Processing• Ginning• Home textile• Hosiery

Total 48 companies/factories of six sub-sectors were benchmarked under this study.

Werner adopted the following method to investigate the actual performance of the industry:-

On-site visit (3 days for each mill). Management workshop. Benchmark and Data Analysis.

After conducting the study of a sub-sector, consultants gave a presentation first to the respective association and then to MINTEX where participating factories were also invited.

Thereafter, a sector-wise report on the study was submitted by the consultants both to the respective association/mills and MINTEX.

The Sector-wise report submitted by consultants contain findings on the following:-

Plant Layout, Organizational chart, Ratio of Direct/Indirect personnel, Training, Product Specifications, Standard times, Production control, Production planning, Method of work, Line balancing, Plant Efficiency, Quality Maintenance etc.

Process/Methodology adopted by Consultant.

Whether recommendations of the study have been implemented by the units and if so, to what extent?

Action taken by the association on report of the consultants.

Impact/outcome of the study in quantifiable terms, on individual units/sub-sectors.

Way forward/future road map.

Benchmark Value Quartile Description

10 1º Quartile

(superior) World Class Manufacture

9

82º Quartile Medium-High Performance

7

6

3º Quartile Medium-Low Performance 5

4

3

4º Quartile (inferior)

Poor Performance 2

1

Benchmarking Methodology

Benchmarks Summary 1 2 3 4 AVG

Yarn storage and material handing 5 5 10 2 5,5

Production Planning 6 10 10 4 7,5

Quality Control 5 10 10 1 6,5

Cone re-winding 5 5 7 2 4,8

Warping 7 8 8 5 7,0

Beam storage 5 9 7 4 6,3

Sizing 8 9 9 5 7,8

Production Control 9 10 10 4 8,3

Knot-backs and quality changes 9 9 10 7 8,8

Weaving 6 8 7 3 6,0

Machine Maintenance 7 10 8 7 8,0

Fabric inspection 6 8 8 6 7,0

Human Resources 6 10 9 1 6,5

Working methods and skills 6 8 7 4 6,3

Information Control 9 10 10 2 7,8

Absenteeism and labor turnover 3 7 8 6 6,0

Total out of 160 points 102 136 138 63 109,8

Benchmarks Summary 1 2 3 4 AVG

Area and building 6,5 7 10 8 7,9

Lay out 6 7 9 6 6,8

Flexibility of Machinery 6,5 6,5 10 7 7,5

Equipment suitability 6 6 10 8 7,5

Labor productivity 4,5 3,5 10 9 6,8

Energy & Water consumption 5,5 5 10 9,5 7,5

Dyes & Chemicals 7 6 9 8 7,5

Maintenance 5 5 9 7 6,5

Quality Control 4 6,5 9 9 7,1

Stocks 5,6 5,8 8 6 6,4

Safety 4 5 9 8,5 6,6

Ancillary services 5,3 6 9,5 9,5 7,6

Laboratories 4,5 4 9 9 6,6

Total out of 130 points 69,4 73,3 121,5

104,5 92,2

Mills Code 1M1

2M2

3M3

Pakistan

Average

Europe

Middle

East

Far East

Equipment 5.9 6.9 4.9 5.9 9.0 8.0 7.5

Labor Productivity

4.0 3.0 4.5 3.8 8.5 6.5 6.0

Energy and water consumptions

6.3 5.7 4.8 5.6 9.0 7.5 6.0

Mills Code 1M1

2M2

3M3

Pakistan

Average

Europe

Middle

East

Far East

Dyes & Chemicals

5.5 5.5 4.8 5.3 9.0 7.5 7.5

Maintenance 7.0 6.0 4.8 5.9 9.0 8.0 7.5

Addition and reworks

5.0 4.7 4.5 4.7 8.5 7.5 7.0

Environment cares

6.0 1.0 1.0 2.7 9.0 6.5 6.0

Mills Code 1M1

2M2

3M3

Pakistan Average

Europe

Middle East

Far East

Stocks 6.5 2.0 3.0 3.8 8.5 8.0 7.5

Safety Records

7.5 4.5 4.8 5.6 9.0 7.5 7.0

Ancillary Services

5.5 6.5 6.2 6.1 8.0 7.5 7.0

Laboratories 6.3 7.5 5.5 6.4 9.0 7.5 7.0

Mills Code M1 M2 M3 Pakistan

Average

Europe

Middle

East

Far East

Area and buildings

7.7 4.6 5.0 5.8 8.0 7.5 7.0

Lay out 7.0 6.0 6.5 6.5 8.0 7.5 7.0

Flexibility 6.0 7.3 7.0 6.8 8.5 8.0 8.0

Equipment 5.9 6.9 4.9 5.9 9.0 8.0 7.5

Labor Productivity

4.0 3.0 4.5 3.8 8.5 6.5 6.0

Energy and Water Consumptions

6.3 5.7 4.8 5.6 9.0 7.5 6.0

Dyes & Chemicals

5.5 5.5 4.8 5.3 9.0 7.5 7.5Contd………

…

Mills Code M1 M2 M3 Pakistan

Average

Europe

Middle

East

Far East

Maintenance 7.0 6.0 4.8 5.9 9.0 8.0 7.5

Addition and reworks

5.0 4.7 4.5 4.7 8.5 7.5 7.0

Environment cares

6.0 1.0 1.0 2.7 9.0 6.5 6.0

Stocks 6.5 2.0 3.0 3.8 8.5 8.0 7.5

Safety Records

5.5 6.5 6.2 6.1 8.0 7.5 7.0

Ancillary services

5.5 6.5 6.2 6.1 8.0 7.5 7.0

Laboratories 6.3 7.5 5.5 6.4 9.0 7.5 7.0

Total 86.2

71.2

67.3

74.9 121 105 97.5

Pakistani Towel Sector Global Assessment

Weaknesses Neutral Strengths

Labor productivity Lay out Top management

Technology warping/sizing

Machine productivity Weaving technology

Technology installed dyeing

Area and building Testing equipment

Machines age Maintenance Finishing equipment

Operator training Customers satisfaction

Storage conditions MIS

Middle Management Production control

Cares of environment

Absenteeism/turnover

Benchmarking Project: Towel Results (Processing)

Suggested Road map Labour:

Structure Supervisory and Operative Training Too many intermediate levels: streamline the organization chart

Dyes utilization and Consumptions: Start using quality dyes and chemicals

Environmental care: Install to Effluent Treatment Plant (share ETP with others) Customers will soon ask for certifications (OEKOTEX 100,

ISO14000...) Energy, water and steam usage should be reduced

Machines Full automatic machines should be preferred