Thai Garment Industry

Overview of Thai Garment Industry

Important Statistics

Items Value

Total Thai garment export value Approx. 3,200 million USD

Total Thai garment Domestic value Approx. 5,000 million USD

Total number of garment factories in Thailand 2,200 (90% are SMEs)

Number of local brand Approx. 1,000 brands

Number of people working in Thai garment industry

Approx. 900,000 people

SMEsOEM

(Own Equipment Manufacturing)

SMEsODM

(Own Development Manufacturing)

SMEsOBM

(Own Brand Manufacturing)

How SHARE helps Thai SMEs

Government

Mar, 2011

Thai Garment Development FoundationThai Garment Development Foundation

Corporate Profile & ObjectivesCorporate Profile & Objectives

Thai Garment Development Foundation or SHARE is formed in November 1994 by government and private sector

The organization running under the concentration on delivering competitiveness solution

MissionMission

To Strengthen Thai Fashion and Apparel SMEs to ASEAN

by creating value-added and reducing cost.

What we do What we do To serve and increase competitiveness of Thai Apparel

Industryby creating value-added and reducing cost.

Human Resource Development


Continuous Development• Knowledge, Skill,

Attitude and competencies development•All level(Operator,Middle,Top management)• Industrial competency standard

Education Resources Management


Sustainable Development• Education Sector Collaboration

(Vocational , University)

Productivity DevelopmentProductivity

Development

Reducing Cost.

Creating Value-Added

Productivity improvement

Product

Development

ProductDevelopment

ProductDevelopment

What is SHARE Business Network ?What is SHARE Business Network ?



Education Resources Development

Education Resources Development

2010

4 projects

5 projects

5 projects

371,170,000 million baht / year

18 projects 190 companies Increase value /

reducing cost for industry

Product DevelopmentProduct Development 4 projects

Productivity DevelopmentProductivity Development

Our past projects and performance

Best Practices II

Sustainable Productivity Improvement

55 companies

8 companies

1 company

TPM

LEAN THTI 4 companies

Cost reduced by 8.96 million baht / year


68 companies



Product Development

Pattern Workshop Training 2 Courses

36 people

2 Companies

Fashion Muslim

Product Developing

-Under wear / Swimmer- Lady wear

Best Practices (Sample Room) 5 Companies

19 Companies


Organization Behavior Development

Garment Skills Development

Competency Assessment Test

1 Companies

254 people

1 Time

- ACP Apparel Co., Ltd.- MCAP Erawan Co., Ltd.



In-house Training4 Courses

12 Companies

Career Development 78 people

- 20 courses 65 companies

-Garment Merchandiser Competency Test from23 companies 74 candidates

- Sustainable Improvement- Motivate to work happily for an entire organization-Self inspection for production dept. (sewing)- Waste reduction

103 companies

2 Courses

1 Time - Cooperative study project with RMUTK



2 Times

Career CenterCareer Center

1 Time

VQ: Vocational Qualification

Cooperative study

New skilled labors recruitment for the industry

Teaching Media

Development

Teaching Media

Development1 Topic

- Bachelor degree of engineering - Bachelor degree of industrial engineering at RMUTSV

The Project of Best PracticesExample

Sponsored by Department of Industrial Promotion

Best PracticeBest Practice conceptconcept

“Help each other, exchange and learn together”

Best Practices Modules

Production Planning and Control

Sample Room and Prototype Improvement

Material Utilization

Lean Manufacturing

Multi Skill Development

Japanese Advanced Production System

Best Practice Success caseBest Practice Success case

Productivity Improvement and Cost Reduction by Multi-skills

Grand Knit Wear Co., Ltd.

A medium size company with approximately 300 machines

BeforeBeforeAfterAfter

• Space consuming

• Long production line

• Double work

• Time consuming

• Production line was rearranged by sitting next to each other so that workers can see the works amount of their teammates.

• Quality control was brought in place at the line’s end for immediate inspection.

Result in Sewing line Result in Sewing line improvement improvement

Star

tSt

art

Fini

shFi

nish

ResultsResults

Topic Target Before After

Efficiencyincrease ≥ 10%

80 pieces

160 pieces (100%)

Reworkdecrease

≤ 5%30

pieces10 pieces (200%)

WIPdecrease

≥ 20%132

pieces70 pieces (88.5%)

Improving StagesImproving Stages

1. Adjustment of production from work process focused to goods produced focused.

2. Reduction of Work-In-Process by changing from bundle system to one-piece-flow system.

3. Revision of workers’ compensation system.4. Changing workers’ attitude.5. Supervisors focus only production alone.6. Prepare sewing manual for common products.7. Determine group compensation.

Productivity Improvement and Cost Reduction by Production Planning & Control

Heart & Mind Co., Ltd.A medium size company with approximately 300 machines


BeforeBeforeAfterAfter

• Space consuming

•Time consuming

• Reducing time by giving out fabric according to more precise calculation

• Better on-time delivery of fabric to production dept. due to process reduction

Result in Fabric Result in Fabric inventory improvement inventory improvement

Use the whole lot of fabric

Receiving withdrawal card

Giving fabric as stated in the card

Restocking the left-over fabric

Receiving withdrawal card

Use the fabric as stated in the card

Giving fabric as stated in the card

ResultsResults


Efficiencyincrease

≥ 5%59%

62.5% (5.9%)

Lead Time

decrease≤ 5%

39 days37 days (5.1%)

OTPincrease≥ 20%

55.2% 69% (25%)


1. Reducing Lead-time in fabric inventory department by redo the process of giving and restocking fabric, reducing the process of withdrawing fabric for cutting, reducing time for fabric inspection.

2. Reducing production cost by reducing the percentage of sewing accessories purchasing,

Productivity Improvement and Cost Reduction by Lean Production

Central Garment Factory Co., Ltd.

A medium size company with approximately 300 machines


BeforeBefore

AfterAfter

Result in Process line Result in Process line improvement improvement

• The length of work flow is 20.5 meters.

• The length of work flow is reduced to 10 meters (46.3%)

ResultsResults


Productivity

increase ≥ 10%

4,480 pieces

6,780 pieces (51%)

Costdecrease

≤ 10%

43.54 Baht/pie

ce

23.54 Baht/pieces

(45%)

WIPdecrease

≥ 20%2,216 pieces

706 pieces (68.8%)


1. Adjustment of production line process.2. Search and improve for 3 wastes, production, waiting time and motion.3. Connection of Boxer cutting dept. to sewing dept. and control of work and

equipment using Kamban system with Andong system for failure detection.4. Self-inspection of work in each process.5. Setting up a standard of procedures (SOP).

Productivity Improvement and Cost Reduction by Sample Room Development

Neo Apparel Co., Ltd.A medium size company with approximately 300 machines


BeforeBefore

AfterAfter

Result in Sample room Result in Sample room improvement improvement

Late sample delivery

Long Lead Time

Not Right First Time

No Standard

of Procedure

• Prepared sample plan/status for follow up• Prepared sample production plan• Prepared a form for purchasing sample

• Creating Prototype Standard pattern• Creating Pattern Manual• Improved size spec form• Creating Prototype Pattern for embroidery

• Improved sample order card• Creating manual for correct cutting• Creating sewing technique manual and critical point• Etc.,

ResultsResults

Topic Target Before AfterOn Time Sample Delivery

increase ≥ 10%

38% 48.28%

Lead Time

Reduction

decrease≤ 10%

13 days7.5

days(42.3%)

Not Right First Time

decrease≥ 30%

93% 31%


1. Prepare work flows by applying lean manufacturing concept to reduce waste.2. Prepare Master Plan and Load Analysis.3. Implement Design Engineering based on actual production and cost according

to the need of customers.4. Implement Risk Assessment.5. Prepare Master Pattern.6. Re-organize for a friendly environment layout .

Skills Development projectFor 10 careers in apparel industry in operator and

supervisor levels

Sponsored by OSMEP

CareersCareers

Operator / Supervisor level1. Production Planning and Control2. Merchandiser / Retail3. Purchasing4. Pattern technician5. Cutting6. Sewing7. Sample room management8. Quality Control9. Sewing machine mechanic10.Trainer for industrial sewing machine

Pre-Test TrainingPost-Test

On-the-job

evaluation

Result in skills Result in skills improvementimprovement

Before After

Average Test Score = 48%

From 254 candidates in 10 careers From 254 candidates in 10 careers

Average Test Score = 75%

SHARE activities SHARE activities

Teacher’s Training Session

Teacher’s Training Session

SHARE SHARE activitiesactivities

Best Practices & TPM

Best Practices & TPM

68 Factories participated

Total Cost reduced by $12 Million / year


Productivity Improvement for SMEs

Productivity Improvement for SMEs

Skills Improvement for SMEs

Skills Improvement for SMEs

25 Factories participated

Total Cost reduced by $1.8

Million / year

Over 250 personnels

participated

Over 80% satisfaction rate from employers


Fashion MuslimFashion Muslim

100 personnels

participated

Networking between

manufacturers and community


Pattern WorkshopsPattern Workshops

SHARE ForumsSHARE Forums

• Swim wear• Under wear• Lady wear

• Once a month• Topics variety• Well-known guest speakers


Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR)

• Education segment• Apparel focused

SHARE executives SHARE executives & staff& staff

Future Multi National Projects for SMEsFuture Multi National Projects for SMEs

Experts Exchange and Study Visit• Merchandiser• Pattern Technician• Productivity Improvement• Competencies Improvement

Targeted Countries• China, South Korea, Russia, UAE, India and etc.

International SMEs Networking• Collaboration• Annual conference• Etc.,

Targeted Countries• Russia, India, China, South Korea, Etc.,

Future Multi National Projects for SMEsFuture Multi National Projects for SMEs

Thank YouThank You

Q&AQ&A www.share-apparel.orgwww.share-apparel.org

[email protected]@share-apparel.org

Thai Garment Industry

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