Alem gemechu (1)

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Alem gemechu (1)

  1. 1. ADDIS ABABA UNIVERSITY FACULTY OF TECHNOLOGY SCHOOL OF GRADUATE STUDIES DEPARTEMENT OF MECHANICAL ENGINEERING QUALITY IMPROVEMENT IN ETHIOPIAN GARMENT INDUSTRIES By: Alem Gemechu Advisor: Dr.-Ing. Daniel Kitaw Co-Advisor: Ato Amare MatebuA thesis submitted to the School of Graduate Studies of Addis Ababa University inpartial fulfillment of the Degree of Masters of Science in Mechanical Engineering (Industrial Engineering Stream) September, 2009
  2. 2. Quality improvement in Ethiopian garment industries   Addis Ababa University School of Graduate Studies Faculty of Technology Mechanical Engineering Department QUALITY IMPROVEMENT IN ETHIOPIAN GARMENT INDUSTRIES By: Alem GemechuApproved by board of examiners______________________________ ______________ ___________ Chairman, Department Signature Date Graduate committee____Dr.-Ing Daniel Kitaw_________ ______________ ___________ Advisor Signature Date_____Ato Amare Matebu_________ ______________ ___________ Co-Advisor Signature Date______________________________ ______________ ___________ Internal Examiner Signature Date______________________________ ______________ ___________ External Examiner Signature DateBy: Alem Gemechu  Page ii  
  3. 3. Quality improvement in Ethiopian garment industries   DECLARATIONI hereby declare that the work which is being presented in this thesis entitled,“QUALITY IMPROVEMENT IN ETHIOPIAN GARMENT INDUSTRIES” isoriginal work of my own, has not been presented for a degree of any other university andall the resource of materials uses for this thesis have been duly acknowledged._______________________ _________________ Alem Gemechu DateThis is to certify that the above declaration made by the candidate is correct to the best ofmy knowledge._______________________ _________________ Dr.-Ing Daniel kitaw Date_______________________ _________________ Ato Amare Matebu DateBy: Alem Gemechu  Page iii  
  4. 4. Quality improvement in Ethiopian garment industries   ACKNOWLEDEMENTWith sincerity, I extend my warm and deep appreciation and gratitude to my advisor, Dr.-Ing. Daniel Kitaw and my co-advisor Ato Amare Matebu for their unreserved guidanceand support to come up with this research work. Above all, I praise the Almighty Fatherand Lord Jesus Christ who gave me His enabling grace to successfully complete thisresearch work within the given time. I would also like to thank all who responded to myquestionnaires and interviews, which helped me in coming up with this research. Finally,I thank my father Dr. Gemechu Demissie, my mother Sr. Dinknesh Admassu and myhusband Ato. Chanyalew Taye for their continuous support, ideas and love during mystudies.By: Alem Gemechu  Page iv  
  5. 5. Quality improvement in Ethiopian garment industries   ABSTRACTThis research work makes an assessment on quality related problems in Ethiopiangarment industries in order to develop an applicable quality improvement model so thatthe overall performance of the sector can be improved. A brief introduction is given onthe fundamental concepts of quality with reference to recent literature in the area so as tohelp readers follow the model developed. To undertake this research, a sample size of 11garment industries representing 40% of the total garment industries in the country wastaken considering the expected response rate, requirements for performing statisticalanalysis, available time and survey cost. Moreover, the selected garment industriesproduce different ranges of garment products in the country. Primary and secondary datawere collected and analyzed to indentify quality-related problems of the sector using awell structured questionnaire, interviews, personal observations and review of previousresearch works. Then a quality improvement model is developed along with primarysteps to implement the model to attain the goal. Finally, a number of recommendationsare given for the garment industries. This paper can be used as a lead for future researchworks in the field.By: Alem Gemechu  Page v  
  6. 6. Quality improvement in Ethiopian garment industries   TABLE OF CONTENTSACKNOWLEDEMENT ........................................................................................................iv ABSTRACT............................................................................................................................ v TABLE OF CONTENTS.......................................................................................................vi LIST OF FIGURES ............................................................................................................ viii LIST OF TABLES .................................................................................................................ix LIST OF ACRONYMS .......................................................................................................... x 1.  INTRODUCTION .......................................................................................................... 1  1.1.  Research Background ......................................................................................... 1  1.2.  Problem Statement .............................................................................................. 4  1.3.  Research Objective ............................................................................................. 7  1.4.  Significance of the Study .................................................................................... 8  1.5.  Scope of the Research ......................................................................................... 9 2.  LITERATURE REVIEW ............................................................................................. 10  2.1.  Evolution of Quality ......................................................................................... 10  2.1.1.  Inspection .................................................................................................... 11  2.1.2.  Quality Control ........................................................................................... 12  2.1.3.  Quality Assurance ....................................................................................... 12  2.1.4.  Total Quality Management ......................................................................... 12  2.1.5.  State of the Art ............................................................................................ 13  2.2.  Quality Standards .............................................................................................. 15  2.3.  Quality Improvement ........................................................................................ 16  2.4.  Quality Costs..................................................................................................... 19  2.5.  Self Assessment ................................................................................................ 20  2.6.  Garment Production Process ............................................................................. 21 3.  METODLOGY, DATA COLLECTION AND ANALYSIS........................................26  3.1.  Methodology ..................................................................................................... 26  3.1.1.  Survey Questionnaire .................................................................................. 27  3.1.2.  Structured Interviews .................................................................................. 28  3.1.3.  Direct Observation ...................................................................................... 28  3.2.  Data Collection and Analysis ............................................................................ 28 By: Alem Gemechu  Page vi  
  7. 7. Quality improvement in Ethiopian garment industries   3.2.1  Gap Analysis ............................................................................................... 33  3.2.2  Benchmarking ............................................................................................. 37  3.2.3  COQ in NovaStar Garment PLC................................................................ 38  3.2.4  Application of SQC tools in NovaStar garment PLC ................................. 41 4.  PROPOSED QUALITY IMPROVEMENT MODEL .................................................. 50  4.1.  Leadership ......................................................................................................... 51  4.2.  Supplier Improvement ...................................................................................... 52  4.3.  Self Evaluation .................................................................................................. 53  4.4.  Garment Design ................................................................................................ 55  4.5.  Quality Control ................................................................................................. 57  4.6.  Education and Training ..................................................................................... 58  4.7.  Customer Focus ................................................................................................ 59 5.  CONCLUSION AND RECOMMENDATION ............................................................ 65  5.1 Conclusion .............................................................................................................. 65  5.2 Recommendation .................................................................................................... 66 REFERENCES ..................................................................................................................... 68 APPENDIX 1 ........................................................................................................................ 71 APPENDIX 2 ........................................................................................................................ 74 APPENDIX 3 ........................................................................................................................ 79 By: Alem Gemechu  Page vii  
  8. 8. Quality improvement in Ethiopian garment industries   LIST OF FIGURESFig. 1. 1 Distribution of Ethiopian garment industries by first reason for operating at part load capacity in year 2007 [6] ..................................................................................... 7 Fig. 2. 1 Quality Evolutions [15] ...................................................................................... 11 Fig. 2. 2 Development process of Six Sigma in quality management [17] ...................... 13 Fig. 2. 3 Quality and Competitiveness [19] ...................................................................... 17 Fig. 2. 4 Deming’s PDCA cycle [21]................................................................................ 17 Fig. 2. 5 The European quality award model [15] ............................................................ 21 Fig. 2. 6 Garment production process [25] ....................................................................... 23 Fig. 3. 1 Obstacles to improve quality in the companies .................................................. 29 Fig. 3. 2 Cause of poor quality products in the companies ............................................... 30 Fig. 3. 3 Pareto analysis for quality related problems in the companies .......................... 31 Fig. 3. 4 Performance gap of Ethiopian garment industries with best practice country ... 38 Fig. 3. 5 Percentage of quality cost elements in NovaStar garment PLC ......................... 40 Fig. 3. 6 Pareto diagram of defective shirts ...................................................................... 43 Fig. 3. 7 u-chart for the number of defects per shirt ......................................................... 46 Fig. 3. 8 Pareto diagram of defective shirts of day 1 ........................................................ 48 Fig. 3. 9 u-chart after significant causes during day1 is avoided. ..................................... 49 Fig. 4. 1 Supply chain of textile and garment sector ........................................................ 53 Fig. 4. 2 Inspection loop ................................................................................................... 57 Fig. 4. 3 Quality improvement model for Ethiopian Garment Industries ......................... 60 Fig. 4. 4 Quality improvement implementation model for Ethiopian Garment Industries64 By: Alem Gemechu  Page viii  
  9. 9. Quality improvement in Ethiopian garment industries   LIST OF TABLESTable 2. 1 Apparel manufacturing Methods [26].............................................................. 25 Table 3. 1 Qualitative interpretation of questions............................................................. 34 Table 3. 2 Preliminary Gap Analysis for ISO 9001: 2000 ................................................ 34 Table 3. 3 Analysis table ................................................................................................... 36 Table 3. 4 Benchmarking of Ethiopian garment industries [12]....................................... 37 Table 3. 5 Estimated COQ in NovaStar garment PLC ..................................................... 40 Table 3. 6 Types and number of defects (day 1-15) ......................................................... 41 Table 3. 7 Types and number of defects (day 16-31) ....................................................... 42 Table 3. 8 Data sheet for pareto diagram .......................................................................... 42 Table 3. 9 Data sheet for the construction of u-chart for defective shirts......................... 45 Table 3. 10 Evidence of causes of variations in the u-chart ............................................. 47 Table 3. 11 Determination of the causes of variation in day 1 ......................................... 47 Table 4. 1 COQ of Ethiopian garment industries ............................................................. 55 By: Alem Gemechu  Page ix  
  10. 10. Quality improvement in Ethiopian garment industries   LIST OF ACRONYMSAATCC- American Association of Textile Chemists and ColoristsAGOA-African Growth Opportunity ActASTM- American Society for Testing and MaterialsCAD- Computer Aided DesignCAM- Computer Aided ManufacturingCMT-Cut-Make-Trim businessCOQ- Cost of QualityCSA- Central Statistics AgencyEBA- Everything But ArmsEFQM- European Foundation for Quality ManagementEQA- European Quality AwardFDI- Foreign Direct InvestmentFOB- Free On BoardGSP- Generalized System of PreferencesISO- International Standards OrganizationLDC- Least Developed CountriesMBNQA-Malcolm Baldrige National Quality AwardPCDA-Plan-Do-Check-ActQC-Quality ControlQFD- Quality Function DeploymentQMS- Quality Management SystemSPC- Statistical Process ControlTQM- Total Quality ManagementWRAP- Worldwide Responsible Apparel Production PrinciplesBy: Alem Gemechu  Page x  
  11. 11. Quality improvement in Ethiopian garment industries  1. INTRODUCTION1.1. Research BackgroundThe globalization of the market and the rapid improvements in information flow hasmade competition in manufacturing industries to be fierce worldwide. As a result,industries such as the garment industry are facing the greatest challenge in historybecause of the rapidly changing business environment with respect to global competition,market performance, and changing technology [1].Garment is a fashion product that is influenced by social trends and global economicenvironments. The garment industry has specific market characteristics, such as shortproduct life cycle, high volatility, low predictability, and a high level of impulse purchase,making quick response of paramount importance [2].In today’s world, garment industries make a significant contribution to many nationaleconomies especially in the developing world. Many countries are exploiting thisindustry for reasons of economic growth. The high amount of labor involved in garmentproduction has caused garment producers to seek locations with lower wage employeesfor reduced production costs. Garment producers in developing countries have labor-costadvantages compared to industrialized countries [1]. Because of its large labor pool(Central Statistics Agency estimated to be above 30 million persons in 2005), Ethiopiahas a comparative advantage in producing garment. The increased salary levels in Asiancountries, closing of factories particularly in China and dissatisfaction of EU and USimporters provide an opportunity for new entrants such as Ethiopia into the global market[3].Ethiopia has a long history for traditional garment manufacturing, which is endowed withprofound national culture up to this date. Cottage industries have been the main style fortraditional garment and have satisfied the demand of the people for centuries. Theindustrialization process of Ethiopia’s garment manufacturing started in the 1950’s. In1958, an Italian took the lead to establish the Addis garment factory, which wasnationalized in 1975. The public Akaki garment factory was founded in 1963, followedBy: Alem Gemechu  Page 1  
  12. 12. Quality improvement in Ethiopian garment industries  by the Gulele garment factory in 1983 and the Nazereth garment factory in 1992. Thesefour state-owned garment factories have dominated Ethiopia’s garment sub-sector for along time [4]. At present, the garment sector consists of only 2.22 % of the countrysmanufacturing industries.Currently, there are 28 garment factories and 17 more are on project phase [3]. 22 of theexisting garment factories are located in the capital, Addis Ababa [6]. These industriesproduce different kinds of attires including uniforms, work wears, knit wear products likesports wear, under wears, polo shirts, clothing products and suits. Ownership structure ofEthiopian garment industries is a mixture of diversified ownerships including public,share company, private limited company, partnerships and individual ownership.The Ethiopian government has defined the textile and garment sector as a top prioritysector in the industrial development package of the country. This is because textile andclothing market is always demanded next to food commodities. The sector also utilizesmore labor which is available abundantly at low cost in the country. The garment sectorhas a large potential for creating employment opportunities. The sector has strong verticallinkages with the textile industry that have the potential to increase the development ofagriculture. It has a vast potential to manufacture goods for export, thus earning highlydemanded foreign exchange [5].Recently the Ethiopian garment sector has opportunities in the global market such asAfrican Growth Opportunity Act (AGOA) giving quota and duty free access to the USAmarket for sub-Saharan African countries [7]. However, Ethiopia has been exporting alimited quantity of garments to the world market. Out of the total 1.4 billion USD dollarsearned from the export of goods in the year 2007, textile and garment export is only 1%having a small impact on national revenue [6]. This shows that the country did notsucceed in making use of this valuable opportunity. The Ethiopian garment industry isstill at its infancy stage even when compared to that of other developing countries. It isunable to compete in the global market due to inability to produce quality products.The quality of garment products is associated with the extent to which it satisfies theconsumer’s needs. Quality of garment products have two dimensions, namely, a physicalBy: Alem Gemechu  Page 2  
  13. 13. Quality improvement in Ethiopian garment industries  dimension, specifying what the garment item is and a behavioral dimension indicatingwhat the item can achieve [ 8]. Physical characteristics include the intrinsic factors of theitem such as the design, textile construction and finishes that cannot be changed withoutchanging the item itself. The behavioral characteristics of apparel products can be dividedinto functional as well as aesthetic behavioral characteristics. Functional behavioralcharacteristics refer to properties such as the durability and comfort of the item. Aestheticbehavioral characteristics refer to the prettiness or aesthetic experience that the apparelitem can bring about, whether sensory level, emotional, or cognitive.According to David Garvin, a Harvard expert on quality, there are eight dimensions ofquality: performance, features, reliability, conformance, durability, serviceability,aesthetics and perceived quality [9]. Another commonly used definitions of quality thatoriginated from one of the quality pioneers; Juran uses the idea of fitness for use. Fitnessfor use should be judged from the customer’s point of view and not from either themanufacturer’s or seller’s perspective. This concept can be applied for garments as well.For a garment to be fit for use, provided that the style is acceptable it must be [10]: • Free from defects such as stains, fabric defects, open seams, untrimmed threads, misaligned buttons and buttonholes and defective zippers • Fit properly for the labeled size • Perform satisfactory in normal use, meaning that a garment must be able to withstand like normal laundering, dry-cleaning, pressing cycles without color loss or shrinkage. Seams must not come apart and fabric must not tearCustomer needs are a moving target and it is widely recognized that quality goals mustkeep shifting to respond to the changes that keep coming over the horizon [11]. As aresult, continuous improvement of quality is needed in the garment industry since there iscompetition pressure.By: Alem Gemechu  Page 3  
  14. 14. Quality improvement in Ethiopian garment industries  1.2. Problem StatementEthiopia did not use the advantage of its large labor pool in the garment sector because ofquality problems. The reasons for these are manifold, and extend vertically through thesupply chain from poor quality raw materials to poor finishing. There are external andinternal factors that can directly or indirectly affect the quality of Ethiopian garmentindustries. The external factors are those which are beyond the control of the individualgarment industry while the internal factors are those within its control.External FactorsThe Ethiopian government has declared to give the textile and garment sector a priorityarea for industrial development and export. During the past years, the government hasalready intervened in support of the sector in order to make it competitive in the globalmarket. Expectations have been high, but have not been fulfilled so far by the industry [3].Despite many well-intended efforts of the government, Ethiopian garment industriesposses many challenges on the external environment.The absence of significant backward linkages of domestic suppliers is the major negativefeature of the Ethiopian garment industry. This not only concerns fabric, but also most ofthe accessories that are required. Currently, there are limited accessories manufacturingfactories in the country for the garment sub-sector [3]. Accessories needed in garmentmanufacturing such as buttons, zippers, lacework and liner cloth have to be imported.The quality of the Ethiopian garment industries is further hindered by the poor quality offabric produced by the local textile industries. Most of the domestic fabric available tothe apparel manufacturers is of poor quality. Garment industries deal with this issue byimporting textiles, which is time consuming and increases lead time of order fulfillment.The garment industries are affected even more dramatically as high duties prevent themfrom importing high quality fabric.The other problem is the lack of exposure to foreign best practice (FDI) which has asignificant impact on quality in Ethiopian garment industries. The FDI market can boostlabor skills, transfer technology and thereby increases quality of products. Ethiopia didBy: Alem Gemechu  Page 4  
  15. 15. Quality improvement in Ethiopian garment industries  not have the opportunity to gain much exposure to foreign best practice methods. Therehas been very little FDI especially in the garment sector. The major reasons that areconsidered to be deterrent to FDI are the unavailability of quality fabric in the country.All things being equal, an investor will choose to produce in a country with readilyaccessible supply of textiles to cut down turn-around-time and minimize problems withcustoms clearance. Also, poor infrastructure limits Ethiopian garment industries’exposure to foreign best practice. The lack of foreign investment in the apparel sector isan enormous hindrance to competitiveness in the global market.Furthermore, the existing textile and garment training institutions also do not have thecapacity to give adequate skill upgrading training which have drawbacks on workers’performance.Internal FactorsThere is a large gap between customer requirement and the products of the Ethiopiangarment industries. The degree of communication with the customers to understand theirrequirement and translating into products is not satisfactory. Customers do not involve inproduct development which results in poor quality products that will ultimately affect themarket share and profitability of the sector.Most of the Ethiopian garment industries have a short-term view on business whichfocuses on quantity and profit rather than quality. Quality is regarded as a technical issuemanaged by the quality department. Because of poor management commitment onquality, most of the garment industries don’t have a culture to support total employeesinvolvement in quality improvement. Thus quality vision, mission, documentationsystems and relative measures do not exist.These companies spend most of their time in detecting the defects of the products ratherthan preventing the defects. As a result, the quality control activities are inspection-basedrather than prevention-based. Even the existing inspection techniques are visual methodswhich are not effective. There is also no awareness and application of statistical processBy: Alem Gemechu  Page 5  
  16. 16. Quality improvement in Ethiopian garment industries  control tools. As a result, the industries are not able to continuously monitor theirprocesses and determine whether the processes are in or out of control.Most of Ethiopian garment industries don’t have self evaluation activities such as cost ofquality, quality audit, employees performance and satisfaction evaluation, andbenchmarking. Therefore, the existing problems are not identified and not solved. Thesector cannot achieve lessons on how best-in-class competitors perform and improvetheir quality. As a result, the sector is lagging behind international competitors.Majorities of Ethiopian garment industries are not strong financially and do not havefunds to invest in personnel training and purchase of modern equipments. Since the levelof automation of the machines used is very low, the operators need to perform moreactions resulting in higher work content. Therefore, the quality of the finished productdepends more on the skill of the operators. Due to poor skill of operators, the probabilityof defects is greater and the need for re-working garments is higher. As a result, theindustries are forced to incur additional cost because more inspectors are required toidentify the defects.Today, while advanced garment processing equipments such as automatic cuttingmachines, computer controlled lock-stick sewing machines, virtual garment system andstereo iron-ordering machines are widely used in overseas garment factories, most of theEthiopian garment factories are still using medium speed lockstitch sewing machines andoverlook sewing machines. Most of them also lack CAD/CAM system, spreadingmachines, centralized steam system which help to increase quality and productivity. Theabsence of embroidery machines and adequate washing and drying facilities furtherhinders customer satisfaction.The garment industries are also impacted by the supply of poor fabric and accessoriesfrom external suppliers as well. There is minimum flow of information and cooperationwith external suppliers. The major criterion for purchasing raw materials is based onprice rather than quality. Ethiopian garment industries do not use any mechanism toevaluate raw material suppliers prior to shipment.By: Alem Gemechu  Page 6  
  17. 17. Quality improvement in Ethiopian g ustries  garment indu Poor working con nditions in E Ethiopian ga arment indus stries contrib to high t bute turn-over an nd nteeism rates These resu in unskill operators to do speciabsen s. ult led s ialized jobs which reduc cequalit and produ ty uctivity. In g general, the productivity of the Ethi y iopian garme industrie ent esis also low. Produ uctivity of a worker in c case of mediu complex T-shirt is 1T-shirt pe um xity er15 m minutes wher as in Rom re mania and Tu urkey produ ucing the sam T-shirt ta me akes only 5. .6and 6 minutes respectively [12]. 6.4 rDue t the above mentioned problems, t Ethiopia garment industries ca to e d the an annot face th hedema required by the export markets. According to Central S and d . Statistics Ag gency (CSA A),the r reasons for these indust tries for operating at p part load ca apacity in year 2007 ar redescr ribed in Figu 1.1 ure No stated ot Others 14% 4% Shortag of ge Absen of nce supply o raw of credit facility f materiials 14% % 43%% Absence of market demand m 25% Fig. 1. 1 Distribu ution of Ethi iopian garme industrie by first rea ent es ason for operating at par rt load capaci in year 2007 [6] ity1.3. Research Objectiv h veThe m main objecti of this s ive study is to c critically exa amine and id dentify quali associate ity edprobl lems in Ethio opian garmen industries and develop an appropri and appl nt p iate licable qualit tyimpro ovement mod to improv the overall performan of the sec del ve nce ctor.By: Alem Gemechu  Page 7  
  18. 18. Quality improvement in Ethiopian garment industries  Furthermore, the research targeted to achieve the following specific objectives: • Develop a conceptual understanding about quality and show the need for quality improvement in Ethiopian garment industries • Critically examine and identify the quality associated problems of the sector • Perform a gap analysis with respect to ISO 9000 system • Identify the potential areas for improvement • Propose appropriate measures to improve the quality of products1.4. Significance of the StudyIn recent years the Ethiopian government has implemented a raft of economic reforms toboost the economy of the country. Privatization and tax incentives have helped Ethiopiato achieve 10% annual growth across all sectors over the past five years and 32% growthin exports in the past year [5]. Exports of textiles and clothing, primarily to Europe andthe United States increased only by US$ 1.6 million, from US$ 11 million in 2005/2006to US$ 12.6 million in 2007/08. However, this figure is below the expectations, whichshould have reached US$500 million [6]. To encourage investors, the Ethiopiangovernment is waiving taxes for both exports and the import of raw materials andmachinery. Despite such incentives, Ethiopian garment industries cannot compete in theglobal markets because of poor quality products. Compared to other developing countries,like China, Ethiopia is lagging behind in quality, especially in the garment sector [5].Therefore, there is a need for in-depth study to improve the quality of the Ethiopiangarment sector. Unfortunately, only limited numbers of researches have been done atnational level on quality-related topics in Ethiopian garment industries. This study aimsto identify the quality related problems of Ethiopian garment industries and proposeappropriate implementation model. The research has a great benefit to overcome thestated quality problems so that the sector can be competitive in the global market. It ishopefully believed that the Ethiopian garment industries will implement the model andhave a remarkable improvement. Government bodies such as Ministry of Trade andBy: Alem Gemechu  Page 8  
  19. 19. Quality improvement in Ethiopian garment industries  Industry, Quality and Standard Authority of Ethiopia and other interested sectors can alsodraw important concepts out of the study.1.5. Scope of the ResearchThis research work makes an assessment on quality related problems in selected 11Ethiopian garment industries (which represent 40 % of the total garment industries in thecountry) and provides concrete and applicable solutions. An applicable qualityimprovement model is developed so that the overall activities of the industries can beimproved and the sector can be competitive in the global as well as domestic market.By: Alem Gemechu  Page 9  
  20. 20. Quality improvement in Ethiopian garment industries  2. LITERATURE REVIEW2.1. Evolution of QualityThe quality movement can trace its roots back to medieval Europe, when craftsmenbegan organizing into unions called guilds in the late 13th century [13]. In the early1950’s, quality management practices developed rapidly in Japanese plants, and becomea major theme in Japanese management philosophy, such that, by 1960, quality controland management had become a national preoccupation. By the early 1970’s Japan’simports into the USA and Europe increased significantly, due to its cheaper, higherquality products, compared to the Western counterparts. The quality revolution in theWest was slow to follow, and did not begin until the early 1980’s, when companiesintroduced their own quality programs and initiatives to counter the Japanese success [14].Since the turn of the century quality improvement has matured significantly. New qualitysystems have evolved from the foundations of Deming, Juran and the early Japanesepractitioners of quality, and quality has moved beyond manufacturing into service,distribution, healthcare, education and government sectors. During the last three decades,simple inspection activities have been replaced or supplemented by quality control,quality assurance and now most companies are working towards Total QualityManagement (TQM) [15]. In this progression, four fairly discrete stages can be identified:inspection, quality control, quality assurance, and TQM as shown in Figure 2.1.By: Alem Gemechu  Page 10  
  21. 21. Quality improvement in Ethiopian garment industries   Fig. 2. 1 Quality Evolutions [15]2.1.1. InspectionAt one time inspection was thought to be the only way of ensuring quality. Inspectionwith reference to the garment industry can be defined as the examination or review ofraw materials (like fabric, buttons, zippers and sewing threads), in-process componentsand completely finished garment in relation to some standard specifications, orrequirements. The inspection activity can be carried out by staff employed specificallyfor the purpose or by self-inspection. Products which do not conform to specification maybe scrapped, reworked, modified or passed on concession. In some cases inspection isused to grade the finished product. The system is an after-the event screening processwith no prevention content. Simple inspection based systems usually do not directlyinvolve suppliers or customers in the activity.By: Alem Gemechu  Page 11  
  22. 22. Quality improvement in Ethiopian garment industries  2.1.2. Quality ControlQuality control is concerned with the operational techniques for detecting, recording, andtaking actions to eliminate quality problems. Quality control focuses on finding andeliminating sources of defects and monitoring the manufacturing process. With qualitycontrol there is some development from the basic inspection activity in terms of thesophistication of methods, systems, tools and techniques employed. While the mainmechanism for preventing off-specification products and services from being delivered toa customer is again screening inspection. Quality control measures help increase processcontrol and to lower incidence of non-conformances. Quality control will not improvequality but just highlight when products and services do not conform to requirements. Anover emphasis on quality control will result in people relying on their work to be checkedand tends to stop them from taking responsibility for improving the processes for whichthey are responsible.2.1.3. Quality AssuranceFinding and solving a problem after a non-conformance has been created is not aneffective means of eliminating the root cause of a problem. Continuous improvement canonly be achieved by directing organizational efforts towards planning and preventingproblems occurring at source. This concept leads to the third stage of quality managementdevelopment which is quality assurance. In short, more emphasis is placed on advancedquality planning, improving the design of the product, process and services, improvingcontrol over the process, and involving and motivating people.2.1.4. Total Quality ManagementThe fourth and highest level of quality management is TQM. TQM is a managementphilosophy, a paradigm, a continuous improvement approach to doing business through anew management model. TQM expands beyond statistical process control to embrace aBy: Alem Gemechu  Page 12  
  23. 23. Quality improvement in Ethiopian garment industries  wider scope of management activities of how to manage people and organizations byfocusing on the entire process, not just simple measurements. This involves theapplication of quality management principles, these are: continuous improvement,customer focus, honesty, sincerity and care to all aspects of the business, includingcustomers and suppliers. TQM is composed of three paradigms: • Total: Involving the entire organization • Quality: conformance to requirements (meeting customer requirements) • Management: Science and art or manner of planning, controlling, directing and the like2.1.5. State of the ArtThe history of quality management, from mere inspection to TQM, and its modernbranded interpretations such as Six-Sigma, has led to the development of essentialprocesses, ideas, theories and tools that are central to quality improvement. Six-Sigma isa new strategic paradigm of management innovation for the survival of a company in the21st century, which implies three things: statistical measurement, management strategyand quality culture [16]. It is regarded as a fresh quality management strategy which canreplace quality control, TQM and others. In a sense, we can view the developmentprocess of Six-Sigma as shown in Figure 2.2 Fig. 2. 2 Development process of Six Sigma in quality management [17]By: Alem Gemechu  Page 13  
  24. 24. Quality improvement in Ethiopian garment industries  A garment production process faces numerous kinds of problems leading to qualitydefects and subsequent alterations and rejections of the product. The Six-Sigmamethodology is a structured program for improving garment quality through Define,Measure, Analyze, Improve and Control (DMAIC) methods [18 ]. DMAIC phases consistof the following steps:Define: This is the first phase of the process improvement effort. During this phase, theSix-Sigma project is defined. Planning for the garment production and collection ofinformation pertaining to the customer requirements is done.Measure: In this phase the key internal processes that influence critical to quality (CTQ)are identified and the garment defects are measured.Analyze: This phase involves the data analysis for identification of parts of processwhich affect the quality of the garment. There are a number of statistical tools availablesuch as Hypothesis Testing, Regression Analysis and historical Design of PFMEA, BoxPlot, ANOVA, Correlation, Regression.Improve: This phase finds a permanent solution to the problem. This may involve betterforecasting, better scheduling, better procedures or equipment.Control: In this phase, tools are used to ensure that the key variables remain within themaximum permissible ranges continuously.Currently there are analytic software for Six-Sigma programs that provide all necessarydata management, analysis, and graphics capabilities to determine the most importantfactors, and perform data-driven decision-making [16].By: Alem Gemechu  Page 14  
  25. 25. Quality improvement in Ethiopian garment industries  2.2. Quality StandardsQuality standards are frameworks for achieving a recognized level of quality within anorganization. Achievement of a quality standard demonstrates that an organization hasmet the requirements laid out by a certifying body. There are at least four differentsources of product standards: company standards, industry standards, national standards,and international standards [10]. International standards are increasingly important fordoing business in a global environment. International Standard Organization (ISO) hasdeveloped a set of standards for quality systems that is required for quality certification.The ISO 9000 family of standards represents an international consensus on goodmanagement practice. Its primary aim is to give organizations guidelines on whatconstitutes an effective quality management system, which in turn can serve as aframework for continuous improvement. ISO 9000 is not a product quality label orguarantee. Compliance with the standards verifies product repeatability such thatproducts produced under a specified standard will have similar dimensions of quality.Some garment industries view ISO certification is only necessary as a factor for exports.Implementation of ISO helps the garment industries to enhance their product and processquality, minimizes defective supplies and reworking. As it is a well recognized standardfor quality, it shows the customers that the industry takes quality seriously. ISO certifiedcompanies focus more on the quality of their products and operations. It also motivatesthe employees in improving quality. The cost of implementing ISO is comparativelycheaper to the benefits derived out of it. Many ISO certified companies positively assertthat their total costs went down to a considerable extent after the implementation of ISO[18].There is no industry or government-mandated standards for textile or garmentperformance, but voluntary standards are available for many products. These standardsare used by many textile mills and apparel firms to determine performance of materials.Two government and trade supported organizations have developed standardperformance specifications for textiles and many other products. The American Societyfor Testing and Materials (ASTM) and the American Association of Textile Chemists andBy: Alem Gemechu  Page 15  
  26. 26. Quality improvement in Ethiopian garment industries  Colorists (AATCC) have established standard test methods related to performancecharacteristics and physical parameters of textile products [18].ASTM is the worlds largest source of voluntary standards for different types of products,including textile and apparel categories. ASTM annually publishes books of standards formany products. ASTM published a series of recommended standards that can serve asguidelines for purchasing fabrics with performance acceptable for forty-two apparelproduct categories. These standards are used as guidelines in specifying fabricrequirements and negotiating purchase contracts.AATCC is internationally recognized for its standard methods for testing dyed andchemically treated fibers and fabrics. These standards are established to measure andevaluate performance characteristics such as colorfastness to light and washing, durablepress finishes, shape retention, flammability, and the many other conditions to whichtextiles may be subjected. The standards and test methods provided by ASTM andAATCC often become a part of the materials standards and specifications used bymanufacturers.2.3. Quality ImprovementInspecting every product is costly and inefficient, but the consequences of shipping non-conforming product can be significant in terms of customer dissatisfaction [11]. As aresult, the underlying aim of quality improvement is to ensure in a cost efficient mannerthat the product shipped to customers meets their specifications. Higher product quality isrequired for a company to become more competitive, both locally and in internationaltrade as shown in Figure 2.3. Improved quality increases productivity, hence, manyworld-class firms and nations use quality as a powerful competitive tool [19].By: Alem Gemechu  Page 16  
  27. 27. Quality improvement in Ethiopian garment industries   Reduced Cost of Improved Reduced Waste Production Productivity Improved Improved Quality Competitiveness Increased Market Increased Share Revenues Fig. 2. 3 Quality and Competitiveness [19]Continuous improvement of quality is needed since there are competition pressures andcustomer needs are a moving target. Therefore, quality goals must keep shifting torespond to the changes that keep coming over the horizon i.e. new technology, newcompetition, threats, and opportunities [20]. The Deming’s plan-do-check-act (PDCA)cycle is the most widely used tools for continuous improvement as shown in Figure 2.4 Plan Act Do Check Fig. 2. 4 Deming’s PDCA cycle [21]Plan: Identify an opportunity and plan for change.Do: Implement the change on a small scale.Check: Use data to analyze the results of the change and determine whether it made adifference.Act: If the change was successful, implement it on a wider scale and continuously assessthe results. If the change did not work, begin the cycle again.By: Alem Gemechu  Page 17  
  28. 28. Quality improvement in Ethiopian garment industries  A wide range of tools and techniques are used for identifying, measuring, prioritizing andimproving a process which are critical to quality. The basic quality improvement tools areCheck sheets, Histograms, Pareto diagram, Cause-and-Effect diagrams, Scatter diagramsand Control charts.A Check sheet is a paper form on which items to be checked have been printed already sothat data can be collected easily and concisely. Its main purposes are to make data-gathering easy and to arrange data automatically so that they can be used easily later on.A Histogram is a bar chart showing a distribution of variables. This tool helps identify thecause of problems in a process by shape of the distribution as well as the width of thedistribution. The histogram clearly portrays information on location, spread, and shaperegarding the functioning of the physical process. It can also help suggest both the natureof and possible improvements for the physical mechanisms at work in the process.A Pareto Diagram is a bar graph used to arrange information in such a way that prioritiesfor process improvement can be established. Pareto diagram is used to display the relativeimportance of data and to direct efforts to the biggest improvement opportunity byhighlighting the vital few in contrasts to the useful many.A Cause-and-Effect Diagram is a tool that helps identify, sort, and display possiblecauses of a specific problem or quality characteristic. The diagram graphically illustratesthe relationship between a given outcome and all the factors that influence the outcome.It is used when we need to identify the possible root causes, the basic reasons, for aspecific effect, problem, or condition, sort out and relate some of the interactions amongthe factors affecting a particular process or effect and analyze existing problems so thatcorrective action can be taken.A Scatter diagram is used to study the relation of two corresponding variables i.e. aquality characteristic and a factor affecting it, two related quality characteristics, or twofactors relating to a single quality characteristic.By: Alem Gemechu  Page 18  
  29. 29. Quality improvement in Ethiopian garment industries  A Control chart is a graphical method for displaying control results and evaluatingwhether a measurement procedure is in-control or out-of-control.2.4. Quality CostsA proper understanding of the cost of quality (COQ) is vital for a garment industry todevelop quality conformance as a useful strategic business tool to improve quality.Quality costs are the costs associated with preventing, finding, and correcting defectivework [21]. Research shows that the costs of poor quality can range from 15%-40% ofbusiness costs [22]. Many of these costs can be significantly reduced or completelyavoided.There are four types of quality costs: prevention costs, appraisal costs, internal failurecosts, and external failure costs [23]. i. Internal Failure Costs: Costs from product defects prior to shipment to customer. These include scrap, rework, retest, downtime, etc. ii. External failure costs: Costs associated with defects found after shipment to customer. They include complaint adjustment, returned material, warranty charges, allowances, etc. iii. Appraisal Costs: Costs associated with discovering the condition of products and raw materials. They include incoming material inspection, inspection and test, maintain accuracy of test equipment, materials and services consumed, evaluating of stocks etc. iv. Prevention Costs: The costs of all activities to prevent poor quality of products. These include quality planning, new products review, training, process control, quality data acquisition and analysis, quality reporting, improvement projects etc.By: Alem Gemechu  Page 19  
  30. 30. Quality improvement in Ethiopian garment industries  Total Cost of QualityTotal Cost of Quality is the sum of four types of costs i.e. Prevention Cost + AppraisalCost + Internal Failure Cost + External Failure Cost.In todays business environment reduction of total cost of quality increases thecompetitiveness and facilitates survival and further growth of a garment industry [23].2.5. Self AssessmentThree most frequently used self-assessment models have been Japan’s DemingApplication Prize, the Malcolm Baldrige National Quality Award (MBNA), and theEuropean Quality Award (EQA). Each award is based on a perceived model of totalquality management. They do not focus solely on either product or service perfection ortraditional quality management methods, but consider a wide range of managementactivities, behavior and processes which influence the quality of the final offerings [20].The model of the European Quality Award is divided into two parts: enablers and results.The enablers are leadership, people management, policy and strategy, resources andprocesses [15]. These five aspects steer the business and facilitate the transformation ofinputs to outputs. The results are people satisfaction, customer satisfaction, impact onsociety and business results which are the measure of the level of output attained by theorganization. The model consists of nine primary elements which are further divided intoa number of secondary elements as shown in Figure 2.5By: Alem Gemechu  Page 20  
  31. 31. Quality improvement in Ethiopian garment industries   Fig. 2. 5 The European quality award model [15]2.6. Garment Production ProcessGarment production process is fragmented and labor-intensive. With low capital and skillrequirements, it is ideally suited to the early stages of industrialization [24]. TheEthiopian garment industry is segmented into tailors, domestic manufacturers andexporters. Tailors undertake the bulk of production of the domestic market. A typicaltailoring shop consists of a tailor who deals with customers (helping with design andmeasurement) and 3-4 workers who stitch the clothes. Consumers generally provide thefabric; therefore, tailors have low fixed costs and pay lower wages. Generally, most tailormade clothing are cheaper than ready-made apparel. Domestic manufacturers andexporters produce western style ready-made apparel for either domestic or export.This research focuses only western style apparel ready-made apparel. The traditionalstyle garments such as Abesha Lebse (Ethiopian traditional cloth) are excluded since theyare unique to Ethiopia and, therefore, not comparable across countries.By: Alem Gemechu  Page 21  
  32. 32. Quality improvement in Ethiopian garment industries  Apparel production processThe production of a final garment consists of the consecutive steps shown in Figure 2.6.[25]Pattern Making: Patternmaking is the process of creating all the correctly sized piecesneeded to make a complete garment. The traditional method of pattern making includescreation of hard paper patterns. The modern garment making system has adopted thedigitization of pattern making process. Most of Ethiopian garment industries are stillusing the traditional method because the cost of computerized systems is prohibitive.Pattern Grading: Pattern pieces must be increased or decreased geometrically to createa complete range of sizes. The process of resizing the initial pattern is called grading. Thegrade rules are developed keeping in view the market segment for which the product isintended such as men, women, youth, children, etc.Marker Making: Fabric is the most important basic material for apparel making and itaccounts for around 50 per cent of the cost of a garment. Thus, material optimization ormaximizing fabric utilization is the fundamental factor for every garment firm. Markingrefers to the process of placing pattern pieces to maximize the number of patterns that canbe cut out of a given piece of fabric. Marker making considers fabric width, length, fabrictype and subsequent cutting method used. Although markers can be made manually orusing CAD software, the computerized method is more efficient.Garment Cutting: Once the marker is made, pattern pieces must be cut out of thespecified fabric. Apart from using traditional tools, nowadays, computerized cuttingsystems are widely used for garment cutting. Pattern specifications are kept intoconsideration while cutting which ensure that the constructed garment is exactly similarto the sample produced.Garment Sewing: This is the main assembly stage of the production process wherefabric is stitched together and a garment is assembled. Computerized sewing machinescan be programmed to sew a specific number of stitches. However, sewing remainslargely labor-intensive.By: Alem Gemechu  Page 22  
  33. 33. Quality improvement in Ethiopian g ustries  garment indu  sing and Finishing: APress F After the se ewing opera ation, the constructed g garments ar reexam mined, presse tagged an bagged. Special deta ed, nd ailing such a pleats, em as mbroidery an ndscree printing to a garment a also adde en o are ed. Garment d design Creating pa attern Production p P planning Order fa abric/accessories Schedu production pro ule ocess Pre-assem mbly Marker making M Buddle (ensure a pattern Spread (lay cloth on the (de etermine layout of cut pieces fr from same ply of ble) tab pa atterns on fabric) fabric) Assemb bly Ensure the pieces f together at the e of the sewing E fit end Sew process Finishi ing Trim Inspect Wash P Press Pack Fig. 2 6 Garmen production process [25 2. nt n 5]By: Alem Gemechu  Page 2 23  
  34. 34. Quality improvement in Ethiopian garment industries  Garment production techniques are divided into make through, assembly line andmodular methods [26]. The method used depends on the product type, quality level, orderquantity, level of technology and skills available as shown Table 2.1In make through method a single operator undertakes the whole process. Therefore, littlesupervision and organization are required. In addition, this method has a very lowthroughput time because only one unit has to be finished at a time to complete the order.The disadvantage of this system is that operator needs to conduct all the operationsrequired to produce the finished good and cannot learn any specialization.Assembly line method is based on extreme division of labor. Its major advantage is thatboth workers and machines are specialized, allowing for a dramatic increase inproductivity. In addition, the individual skills required by operators are greatly reduced.However, this method of production needs excellent organizational ability so as to avoididle time. Factors like variations in individual operator performance, absenteeism andmachine breakdowns can easily upset the working schedule. In addition, this makes itharder to handle style variations and dramatically increases the lead time associated witha finished batch of products.Modular: Modular formation consists of grouping tasks and assigning them to module.These workers are cross-trained and can, therefore, easily move across tasks.Compensation is based on the module’s output instead of that of the individual worker.The key benefit of this method is the reduction in throughput time. However, the costs ofthe switching to this method are very high as extensive training is required. It iscommonly used for high value-added, high fashion product.By: Alem Gemechu  Page 24  
  35. 35. Quality improvement in Ethiopian garment industries   Table 2. 1 Apparel manufacturing Methods [26] System Description Characteristics Quality Ease of Operator Investment Control style skill required change requiredMake Whole garment • Short runs Low High High Lowthrough is made by one • Little operator supervisionAssembly Extreme division • Long runs High Low Medium Highline of labor • High supervision • Standard productsModular Employees are • Short runs High High High Medium organized in • High groups to carry supervision out complete • High value operations for a products family productsBy: Alem Gemechu  Page 25  
  36. 36. Quality improvement in Ethiopian garment industries  3. METODLOGY, DATA COLLECTION AND ANALYSIS3.1. MethodologyTo undertake this research, a sample size of 11 garment industries (Wossi Garment, UnisGarment, Oasis Abyssinia Garment, Mulat Garment, Haile Garment, GMM, FelekeGarment, Ambassador Garment, Garment Evolution, Novastar Garment and Knit to Finish)was selected out of a total 28 garment industries in the country. Detail list of these garmentindustries are attached in Appendix 1. The sample size was decided after considering theexpected response rate, requirements for performing statistical analysis, available time andsurvey cost. Moreover, the selected garment industries cover most types of products-knitted and woven, T-shirts, polos, trousers, suits, jackets of different sizes. Althoughthe selected samples were limited to firms in Addis Ababa and Oromia Region where themajority of the national garment industries (95%) are located, it is assumed that thesamples from these regions can give directions on the whole situation of garment industriesin Ethiopia. In order to obtain important information about the performance of Ethiopiangarment industries, the following organizations were contacted. • Quality and standards Authority of Ethiopia • Ministry of Trade and Industry • UNIDO • Ethiopian Garment Association • Ethiopian Textile and Leather Industry Development Center • Central Statistics AgencyIn order to assess the quality related problems of the sector, primary and secondary datawere collected using a well structured questionnaire, interviews, personal observationsand review of previous research works.By: Alem Gemechu  Page 26  
  37. 37. Quality improvement in Ethiopian garment industries  3.1.1. Survey QuestionnaireThe questionnaire was pilot-tested with a small sample of garment industries in order torefine before distribution. Personal visits as well as phone calls were used to increaseresponse rate.The type of questionnaire used to collect data is presented in Appendix 2. The surveyquestionnaire contains 60 questions requiring four types of answers: • The first type uses a nominal scale, Yes or No • The second type uses an ordinal scale, Excellent, Very Good, Good, Fair, Poor • The third type of scale is Very high, High, Moderate, Low and Nil • The fourth type requires brief answer for subjective questionsThe questionnaire in this survey is categorized into five different sections with referenceto the Ethiopian garment industries. The first category of questions (1to7) was designedto explore the general quality awareness of the industries. These set of questions werebased on the philosophy of one of the quality gurus, Crosby.The second category of questions (8 to 10) is related to the causes of poor quality in thefactories. The objective of these questions is to evaluate the impact of factors such asskills, technology, management commitment and supplier relation.The third category of questions (11 to 25) were designed to assess the qualityimprovement efforts made by the management such as trainings, teamwork and customersatisfaction.The last category questions (26 to 60) deals with quality performance to understand thecurrent quality standards in Ethiopian garment industries. These questions deal withquality planning, quality design, quality control, quality improvement, quality assurance,quality documentation and cost of quality.By: Alem Gemechu  Page 27  
  38. 38. Quality improvement in Ethiopian garment industries  3.1.2. Structured InterviewsThe design of the interviews was based on the research objectives. Interviews wereconducted with top management of the garment industries. The interviews were used tocross check the reliability of the response to the questionnaire. It is also used to gatheradditional information to compare the current QMS with respect to ISO standard.3.1.3. Direct ObservationIn this research direct observation is used as a means to assess the techniques used indocumentation and production processes as well as the existing facilities of the industries.Important documents of the respective industries such as annual reports, company profilebrochure, and inspection data have been also used to perform quantitative analysis.3.2. Data Collection and AnalysisA total of 110 questionnaires were distributed out of which 53% were completed by therespondents. The most common reasons for non-response were low educational level andunwillingness. The result of the statistical analysis of the questionnaire is presented inAppendix 3. According to the first category of questions, the general understanding ofquality concept in the industries is higher at the top of the organization and gets lesser asit goes down.The second category of the questions reveals the causes of poor quality products in theindustries. As shown in Figure 3.1, the system of the organization such as policies, rulesand procedures are the primary obstacle to improve quality in the industries. Lack ofrequired knowledge and skill of employees is the second major contributor.By: Alem Gemechu  Page 28  
  39. 39. Quality improvement in Ethiopian garment industries   50% 40% 30% 20% 10% 0% A B C D E Series 1 40% 8.80% 19% 11.10% 21% Fig. 3. 1 Obstacles to improve quality in the companies A- The system of the organization (like policy, rules and procedures) B- The internal working environment C- Lack of consistency in the action being taken D- Fear and resistance of the management E- Lack of the required knowledge and skillFigure 3.2 shows that poor quality of raw materials is the major cause of poor qualityproducts in the industries and inadequate training of workers in the industries also has agreat impact.By: Alem Gemechu  Page 29  
  40. 40. Quality improvement in Ethiopian garment industries   30% 25% 20% 15% 10% 5% 0% A B C D E Series 1 27.27% 23.63% 18.17% 20% 11% Fig. 3. 2 Cause of poor quality products in the companies A- Poor quality of raw materials delivered from suppliers B- Inadequate training of workers in the company C- Lack of top management commitment to quality D- Low quality awareness of workers in the company E- Unavailability of proper technologyReferring to the subjective answers, the quality related problems faced by the industriesare manifold and include: 1. Lack of quality awareness 2. Lack of proper training 3. Lack of skilled manpower 4. Lack of motivation of workers 5. Low technological level 6. Customer dissatisfaction because of late delivery 7. High rate of rework/rejects 8. Low quality fabric 9. Unavailability of Quality Management System 10. Lack of proper inspection techniquesBy: Alem Gemechu  Page 30  
  41. 41. Quality improvement in Ethiopian garment industries   11. Poor understanding of customers’ requirementsFrom the above responses, a Parteo diagram is constructed as shown in Figure 3.3 toreveal the major causes of the problems. Fig. 3. 3 Pareto diagram for quality related problems in the industries A- Low quality fabric B- Lack of quality awareness C- Lack of skilled manpower D- Low technological level E- Managerial problems F- Lack of proper inspection techniques OthersThe analysis of the Pareto diagram shows that poor quality of the raw material (fabric) isthe major cause of poor quality products in Ethiopian garment industries.By: Alem Gemechu  Page 31  
  42. 42. Quality improvement in Ethiopian garment industries  According to the respondents for the third category of the questions, the frequency oftrainings given to employees is very low as a result the overall skill of the employees islow. Usually the industries give training only on hiring. The existence of strongcooperation and teamwork is not satisfactory. 65% of the respondents agree that theresponse of the industry to market change is low. The quality of products of therespondent companies is not compatible with the quality of the products manufactured bythe market leaders. About 67.5% of the respondents say that the rate of rework in theindustries is high. 73% of the respondents agree that the biggest concerns of themanagement are cost and schedules instead of quality.According to the last category of respondents, most of the garment industries do notidentify customer requirements. There is a large gap between customer requirement andthe products of the industries. The degree of communication with the customers tounderstand their requirement and translating into products is not satisfactory. About 52%of the respondents agreed that the existence of favorable system for customers to expresstheir feelings is very low.These industries don’t have quality improvement programs and they spend most of theirtime on detecting the defects of the products rather than preventing the defects. As aresult, the quality control activities are inspection-based instead of prevention-based.They use visual inspection techniques which are not an effective method and there is noawareness and application of the statistical process control tools.Because of poor management commitment to quality, most of the garment industriesdon’t have their own business culture to support total employees involvement in qualityimprovement. Therefore, the quality vision, mission objective statement and relativemeasures do not exist.68% of the respondents agree that the garment industries do not have self evaluationtechniques. As a result, the industries don’t have internal/external quality audit systemand also do not calculate their cost of quality. Therefore, they are unable to identify theexisting problems and take necessary measures.By: Alem Gemechu  Page 32  
  43. 43. Quality improvement in Ethiopian garment industries  According to 72% of the respondents, the garment industries do not have any mechanismto evaluate the performance their fabric and accessory suppliers. The industries focus onprice instead of quality in the selection of suppliers.According to the information from Ethiopian Garment Association, all garment factoriesin Ethiopia are not ISO certified. But, four garment industries i.e. NovaStar Garment,Maa Garment, Addis Garment and Nazrethe Garment are in the process of WRAPcertification. The Worldwide Responsible Garment Production Principles (WRAP) iscore standards for production facilities participating in the Worldwide ResponsibleGarment Production Certification Program. The Program’s objective is to independentlymonitor and certify compliance with these socially responsible global standards formanufacturing, and ensuring that manufactured products are produced under lawful,humane and ethical conditions. These industries want to use WRAP for marketingpurposes under AGOA export benefit.3.2.1 Gap AnalysisOne of the first steps in quality improvement is to compare the current QualityManagement System (QMS) to the requirements of the ISO 9000:2000 standard. This ismost commonly called a Gap Analysis. A Gap Analysis is used to assess anorganization’s scope, readiness, and its resources for building an ISO system [27].Therefore, in this research a quality management preliminary gap analysis for Ethiopiangarment industries is done based on the data collected from the questionnaire, interviewand personal observation. The possible responses of the questions and their qualitativeinterpretations are shown in Table 3.1. The preliminary gap analysis for ISO 9001:2000in Ethiopian garment industries is shown in Table 3.2. Benchmarking for the analysisresult is shown in Table 3.3.By: Alem Gemechu  Page 33  
  44. 44. Quality improvement in Ethiopian garment industries   Table 3. 1 Qualitative interpretation of questions0 The company does not know what is required or believe it is necessary1 The company does not perform this activity2 The company understands this activity is a good thing to do but do not do it3 The company does this sometimes4 The company does this but not very well5 The company does this quite well. Table 3. 2 Preliminary Gap Analysis for ISO 9001: 2000 Quality Management System Preliminary Gap Analysis Score Decide on a number from 0 to 5 for each item below 1 to 51 Establishing, documenting, implementing and maintaining a QMS to any system including 1 ISO 9001, ISO 9002 or ISO 90032 Identification of the processes needed for QMS i.e. 1 a. The sequence of the production and service delivery processes b. The criteria and methods needed to ensure the processes are effective, and c. Have the resources and the information needed to support the processes3 Availability of: 1 a. Quality Manual including Quality Policy and quality objectives b. Written procedures and work instructions4 Do the records provide evidence that the business processes are effective? 15 Commitment of Top Management to the development and implementation of a QMS 16 Communicating the importance of meeting customer and other business requirements to all 3 the employees by top management7 Commitment of top management to ensure that customers’ requirements are top priority 28 Do quality objectives include requirements for production and delivery? 19 Are quality objectives measurable? 110 Have the responsibilities and authorities of managers and employees been defined and 3 communicated to them?11 Does the management have the drive and resources needed 1 a. To implement, and maintain a QMS and continually improve its effectiveness,By: Alem Gemechu  Page 34  
  45. 45. Quality improvement in Ethiopian garment industries   and b. To enhance customer satisfaction by meeting customer requirements12 Procedures to select competent personnel for work activities 313 Provide training or take other action to help develop people 214 Adequate provision of: 2 a. Buildings, workspace and utilities b. Process equipment c. Supporting services such as transport or communication15 Review customer order for: 3 a. Requirements specified by the customer, including the delivery and post-delivery activities b. Requirements not stated by the customer but necessary for specified use or known and intended use c. Statutory and regulatory requirements related to the product16 Inform customers concerning 3 a. Product information b. Enquiries, contracts or order handling, including changes c. Channels for customer feedback and complaints17 Planning and controlling product design and development activities 118 Maintain records of design or development review, verification and validation activities 1 and resulting action?19 Inspection or confirmation of purchased products, materials, components and services 3 conform to the specified purchase requirements20 Selection of suppliers depending on how important the purchased product is for production 221 Evaluation of suppliers (subcontractors or vendors) based on their ability to satisfy the 2 companies requirements22 Ensuring that production has 3 a. The information that describes the characteristics of the product b. The necessary work instructions, c. Suitable equipment, and d. The monitoring and measuring devices needed23 Confirming regularly that production and service processes are capable of consistently 2 meeting the companies requirements24 Proper handling of products during both production and delivery to the customer, by 3 providing suitable identification, packaging, storage, preservation and handling25 Availability of instructions needed to identify inspection or monitoring activities to be 3 done during production or service delivery and the devices to be usedBy: Alem Gemechu  Page 35  
  46. 46. Quality improvement in Ethiopian garment industries  26 Measuring equipment are: 1 a. Calibrated or verified at specified intervals, or prior to use b. Adjusted or re-adjusted as necessary c. Identified to enable the calibration status to be determined d. Safeguarded from adjustments that would invalidate the measurement result e. Protected from damage and deterioration during handling, maintenance and storage27 Monitoring customers’ information to assure customer satisfaction 228 Conducting internal quality audits at planned intervals 229 Use of suitable methods to monitor and, where practical, measure the performance of 2 processes30 Inspection of finished products and record the results 231 Identifying nonconforming products and reviewing them for disposition 332 Collect and analyzing data to assess the suitability and effectiveness of the QMS 133 Using data to evaluate or identify where continual improvement of the QMS can be made 134 Continually improving the effectiveness of the QMS 135 Taking corrective action to eliminate the causes of problems and to prevent their 1 recurrence36 Determining and eliminating potential nonconformities in order to prevent their occurrence 1 Table 3. 3 Analysis table The company is almost ready to complete ISO 9001 QMS and apply for 130-180 75% - 100% certification/ registration. The company is ready to implement the QMS. This will likely improve 80 -129 50% - 74% its business results. The company has a lot to do but should begin. You could consider 0 -79 0% - 49% seeking help from a consultant or specialist.The analysis of table 3.2 shows that the total scoring of Ethiopian garment industries is66 which is below 50%. Therefore, we can conclude that Ethiopian garment industrieshave a wide gap compared to an ISO 9001: 2000 system.By: Alem Gemechu  Page 36  
  47. 47. Quality improvement in Ethiopian garment industries  3.2.2 BenchmarkingFor further analysis this research work has referred to the benchmarking done by UNIDOtaking selected reference countries and competitor countries as shown in Table 3.4 [12]Reference countriesRomania: An important EU supplier of high quality garments mainly on Cut Make Trim(CMT) basis using imported fabrics.Turkey: 2nd major supplier of garments in EU after China. Turkey is well known for itscapabilities to deliver Free On Board (FOB) garments made from local fabrics.Competitor countriesBangladesh: An important FOB supplier for EU and US where 75% the country’s exportis textile and garment.Egypt: An African country which has a policy to attract textile & garment companies. Table 3. 4 Benchmarking of Ethiopian garment industries [12] Reference countries Competitor countries Ethiopia Turkey Romania Egypt Bangladesh1 Availability of technology 1 5 5 3 32 Average employees skills 2 5 5 3 33 Marketing abilities 1 5 4 3 33 Product development 1 5 4 2 34 Business environment 1 5 5 3 45 Certifications & testing labs 1 5 4 2 46 Technical flexibility 3 5 5 4 37 Productivity 1 4 5 2 38 Quality level 2 5 5 3 39 Management abilities 2 5 5 2 210 Value added 1 5 4 3 311 Availability of raw materials 2 5 3 4 412 Price competitiveness 1 5 2 5 5By: Alem Gemechu  Page 37  
  48. 48. Quality improvement in Ethiopian garment industries  Based on Table 3.4, this research work compares Ethiopian garment industries withinternational best practice country (Turkey) and makes a performance gap analysis asshown in Figure 3.4 6 5 4 Gap = ‐3.4 Ethiopia 3 Turkey Mean 2 Ethiopia Mean 1 0 1 2 3 4 5 6 7 8 9 10 11 12 Fig. 3. 4 Performance gap of Ethiopian garment industries with best practice countryFrom the benchmarking analysis, we can see that the gap between Ethiopia and bestperformance country (Turkey) is very high.3.2.3 COQ in NovaStar Garment PLCThis research work tries to look the total COQ in one of Ethiopian garment industries,NovaStar garment PLC. Although the industry does not calculate its cost of quality, thisresearch work estimates its COQ for the fiscal year 2007/2008 based on the data collectedfrom document review.Based on the components of COQ discussed in section 2.4, the total COQ is calculated asfollows:By: Alem Gemechu  Page 38  
  49. 49. Quality improvement in Ethiopian garment industries  Internal failure costScrap: For the fiscal year 2007/2008 the industry consumed 285,000 m of fabric whichcosts 285,000 m X 15 Birr = 4,275,000 Birr.The amount of scrap was on average 175 m X 12 months=2,100 mTherefore, the cost of scrap is = 2,100 m x 15 Birr = 31,000 BirrRework cost: The rework cost is the cost of re-processing the defective garments afterinspection. The industry produces on average 50,000 pcs of clothes per month and themonthly production cost is 742,400 Birr.Taking an average of 20% defective garments per month and the cost of reworkingdefective garments per year is 1,776,000 BirrExternal failure costReturns: According to the fiscal year 2007/08 the industry has lost a total of 332,000 birrdue to returned material.Appraisal costInspection cost: The industry has 8 inspectors with an a rage salary of 750 BirrTherefore, the total inspection cost for the fiscal year 2007/08 is 750 Birr x 8 persons x12 months = 72,000 BirrQuality audit cost: The industry has 2 internal auditors with an average salary of 1,200BirrTherefore, the total quality audit cost for the fiscal year 2007/08 is 1,200 Birr x 2 personsx 12 months = 28,800 BirrPrevention costQuality related training: The industry does not have training cost and relies on traininggiven by MoTIBy: Alem Gemechu  Page 39  

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