Textile Industry and Progress to Lean Production in China

By Team from

Shandong Jiaotong UniversityNote: Some contents have been modified for confidentiality reasons.

Outline

A General View of Chinese Export Policies in History

Textile Export Business in China

Some Existing Problems

An Example of a Small-scaled Textile Business

Lean Production

An Example of a Textile Business in Lean Production Model

Foreign Trade Between 1949-1980s

• Highly concentrated monopoly.

• All imports and exports were handled by a number of specialized national trade companies.

• Operated under a rigid planning management system.

Reformation of Foreign Trade in China after 1980s

“Open Door Policy”

initiated by Deng Xiaoping

1987 Decentralization was adopted

Foreign Trade Agency System

Foreign Trade permits

Textile Exports of China

Textile Exports of China

What does “Made in China Mean”?

What does “Made in China Mean”?

Problem in Business Model

OEM 70%

ODM 20%

OBM10%

The proportion of OEM, ODM and OBM in Chinese apparel industryZhao Junli, 2009

OEM, ODM and OBM

Problem: Labor Shortage

A Case Study of a Small-scaled Textile Business

An Example of a Small-scaled Textile Business

Lean Production Continuous efforts in reducing waste

Produce quality products

At the least cost to the manufacturers, customers and communities

Sustainable Entrepreneurship

Reducing Wastes

Overproduction

Defects

Unnecessary Inventory

Inappropriate Processing

Excessive Transportation

Waiting

Unnecessary Motion

An Example of a Textile Business in Lean Production Model

An Example of a Textile Business in Lean Production Model

An Example of a Textile Business in Lean Production Model

An Example of a Textile Business in Lean Production Model

What can we do in terms of Lean in our daily life?