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 How SHARE helps Thai SMEs Government SMEs OEM (Own Equipment Manufacturing) SMEs ODM (Own Development Manufacturing) SMEs OBM (Own Brand Manufacturing) Thai Garment Development Foundation Mar, 2011 Corporate 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 Mission To Strengthen Thai Fashion and Apparel SMEs to ASEAN by creating value-added and reducing cost. What we do To serve and increase competitiveness of Thai Apparel Industry by creating value-added and reducing cost. Productivity Development Reducing Cost. Productivity improvement Product Development Creating Value-Added Product Development 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) What is SHARE Business Network ? Our past projects and performance 2010 Productivity Development 4 projects Product Development 4 projects Human Resource Development 5 projects Education Resources Development 5 projects 18 projects 190 companies Increase value / reducing cost for industry 371,170,000 million baht / year Productivity Development Our past projects and performance Best Practices II 55 companies Cost reduced by 359.50 million baht / year TPM 8 companies Cost reduced by 8.96 million baht / year Sustainable Productivity Improvement LEAN THTI 1 company 4 companies 68 companies Cost reduced by 2.71 million baht / year Product Development Our past projects and performance Pattern Workshop Training 2 Courses Fashion Muslim 36 people Product Developing 2 Companies Best Practices (Sample Room) 5 Companies 19 Companies -Under wear / Swimmer - Lady wear Human Resource Development Organization Behavior Development 1 Companies Garment Skills Development 254 people In-house Training 4 Courses 12 Companies Competency Assessment Test 1 Time Career Development 78 people 103 companies - 20 courses 65 companies - Sustainable Improvement - Motivate to work happily for an entire organization -Self inspection for production dept. (sewing) - Waste reduction -Garment Merchandiser Competency Test from23 companies 74 candidates - ACP Apparel Co., Ltd. - MCAP Erawan Co., Ltd. Education Resources Management VQ: Vocational Qualification 2 Courses Cooperative study 1 Time New skilled labors recruitment for the industry 2 Times Career Center 1 Time Teaching Media Development 1 Topic - Bachelor degree of engineering - Bachelor degree of industrial engineering at RMUTSV - Cooperative study project with RMUTK The Project of Best Practices Example Sponsored by Department of Industrial Promotion Best Practice concept “Help each other, exchange and learn together” Best Practices Modules Sample Room and Prototype Improvement Multi Skill Development Japanese Advanced Production System Production Planning and Control Material Utilization Lean Manufacturing Best Practice Success case Productivity Improvement and Cost Reduction by Multi-skills Grand Knit Wear Co., Ltd. A medium size company with approximately 300 machines Result in Sewing line improvement • Space consuming • Long production line • Double work • Time consuming After Start Finish Before • 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. Results Topic Target Before After Efficiency increase ≥ 10% 80 pieces 160 pieces (100%) Rework decrease ≤ 5% 30 pieces 10 pieces (200%) WIP decrease ≥ 20% 132 pieces 70 pieces (88.5%) Improving 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-pieceflow 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. Best Practice Success case Productivity Improvement and Cost Reduction by Production Planning & Control Heart & Mind Co., Ltd. A medium size company with approximately 300 machines Result in Fabric inventory improvement Before After Use the whole lot of fabric Receiving withdrawal card Receiving withdrawal card Use the fabric as stated in the card Giving fabric as stated in the card Giving fabric as stated in the card Restocking the left-over fabric • 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 Results Topic Target Before After Efficiency increase ≥ 5% 59% 62.5% (5.9%) Lead Time decrease ≤ 5% 39 days 37 days (5.1%) OTP increase ≥ 20% 55.2% 69% (25%) Improving Stages 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, Best Practice Success case Productivity Improvement and Cost Reduction by Lean Production Central Garment Factory Co., Ltd. A medium size company with approximately 300 machines Result in Process line improvement Before • The length of work flow is 20.5 meters. After • The length of work flow is reduced to 10 meters (46.3%) Results Topic Target Before After Productivity increase ≥ 10% 4,480 pieces 6,780 pieces (51%) Cost decrease ≤ 10% 43.54 Baht/piece 23.54 Baht/pieces (45%) WIP decrease ≥ 20% 2,216 pieces 706 pieces (68.8%) Improving Stages 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). Best Practice Success case Productivity Improvement and Cost Reduction by Sample Room Development Neo Apparel Co., Ltd. A medium size company with approximately 300 machines Result in Sample room improvement Before Late sample delivery Long Lead Time Not Right First Time No Standard of Procedure After • 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., Results Topic Target Before After On Time Sample Delivery increase ≥ 10% 38% 48.28% Lead Time Reduction decrease ≤ 10% 13 days 7.5 days(42.3%) Not Right First Time decrease ≥ 30% 93% 31% Improving Stages 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 project For 10 careers in apparel industry in operator and supervisor levels Sponsored by OSMEP Careers Operator / Supervisor level 1. Production Planning and Control 2. Merchandiser / Retail 3. Purchasing 4. Pattern technician 5. Cutting 6. Sewing 7. Sample room management 8. Quality Control 9. Sewing machine mechanic 10.Trainer for industrial sewing machine Pre-Test Training PostTest On-thejob evaluation Result in skills improvement Before Average Test Score = 48% From 254 candidates in 10 careers After Average Test Score = 75% From 254 candidates in 10 careers SHARE activities Teacher’s Training Session SHARE activities Best Practices & TPM 68 Factories participated Total Cost reduced by $12 Million / year SHARE activities Productivity Improvement for SMEs 25 Factories participated Total Cost reduced by $1.8 Million / year Skills Improvement for SMEs Over 250 personnels participated Over 80% satisfaction rate from employers SHARE activities Fashion Muslim 100 personnels participated Networking between manufacturers and community SHARE activities Pattern Workshops • Swim wear • Under wear • Lady wear SHARE Forums • Once a month • Topics variety • Well-known guest speakers SHARE activities Corporate Social Responsibility (CSR) • Education segment • Apparel focused SHARE executives & staff Future 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. Future Multi National Projects for SMEs International SMEs Networking • Collaboration • Annual conference • Etc., Targeted Countries • Russia, India, China, South Korea, Etc., Thank You Q&A www.share-apparel.org info@share-apparel.org