Apparel Online India Magazine October 1st Issue 2018 | Page 53

RESOURCE CENTRE Fiscal disruption is another issue that has caused market disruption. Every economy has to have a balance between the money available and the goods offered in the market. In the past decade, it seems that the Indian economy had lots of money for investment and this increased machine import that tied down this surplus money. A large part of this money that the textile/apparel industries, including embroidery have is cash based (not the export markets, though). The Indian Government’s two initiatives – Demonetisation and GST – in the past two years created lots of disruptions in the industry, and manufacturers had difficulties with re-adjusting their business models and processes, especially to learn new accounting procedures and manage the business with less cash. Though, both these policies are good for overall economy in the long-run, adjustment will take time. The devaluation of rupee as against the dollar of late has also disrupted the ability to import machines. So, what to do to be more competitive? Increase productivity, reduce cost: This means, measuring costs very accurately. Work smarter and not harder! Many owners are looking for cheaper labour, but this will not work forever. What you need to do is to get more productivity from the workers by better organising the work and reducing downtime on the machine by reducing thread breaks and also machine breakdowns. Better handling and storing of fabrics, threads can also reduce downtime. Many factories are very dusty; this reduces machine performance and increases downtime. Air-conditioning may be considered costly but it may increase quality, so you would get better paying embroidery jobs. Cleanliness and tidiness at the factory floor increase the workers’ awareness to quality issues. Regular training on quality also helps. Organising the workers into competing teams is a very good practice. Showing the score of the ‘green team’ and the ‘red team’ ESSENTIALS Still, productivity increase can be achieved by creating smart workflows in the factory where goods travel in one direction, machines are placed ergonomically, so one worker can attend two machines, job preparation areas can be created to speed up the replacement of fabric and frames on the machines and so on. Such improvements have to start from the management and trickle down to the workers and not the other way round. every week in reducing machine downtime and wastage, etc. is a very good motivator. One issue with the textile-apparel industry is that it traditionally employs some of the lowest skilled labour force in any country. Therefore, increasing productivity through training is usually a difficult quest especially because of the high turnover of workers. Still, productivity increase can be achieved by creating smart workflows in the factory where goods travel in one direction, machines are placed ergonomically, so one worker can attend to two machines, job preparation areas can be created speed up the replacement of fabric and frames on the machines and so on. Such improvements have to start from the management and trickle down to the workers and not the other way round. Create a brand name: ‘Make in India’ is an excellent initiative. But ‘Indian Excellent Quality Embroidery’ is not what we are aware of, but it should be a long-term goal for factories. Years ago, the ‘Just In Time’ system was very popular, as through excellent organisation and processes, this reduced the cost of storage of parts. Many Western buyers prefer to place an order and get it to the store only when it is needed. To work this way requires a highly disciplined management and workforce. My feeling is that most embroidery units do not yet operate at this disciplined level, although we can see a new generation of managers starting to implement processes that lead in the right direction. Training and education should be the key here. I think the key is to organise training programmes first for owners and managers where the various aspects of productivity of the industry units are analysed and shared, so ‘Best Practices’ can be shown. Second is to identify embroidery skill sets. Government assistance: To the best of my knowledge, there is no official embroidery training programme in India, there are no industry job categories (like Embroidery Production Manager, Embroidery Machine Operator, Embroidery Designer) that would be a part of the national job skill register or training institutions that would offer training for such job skill. The Government needs to look at the outsourcing process and infrastructure, how the buying houses operate and how the contracting is managed. One major issue is compliance. Contractors must satisfy a list of criteria partially ensuring quality and partially ensuring workers’ safety. Indian Government could legislate some general compliance categories that would underpin the ‘Make in India’ initiative and would attract foreign buyers. www.apparelresources.com | OCTOBER 1-15, 2018 | Apparel Online India 53