An Internship Report on ‘Concorde Garments Group’ and topic “How to run an Export Oriented RMG factory and why worker unrest happening in Bangladesh”

1. Date: 15-May-2014
Dhaka, Bangladesh

4. A study on ‘How to run an Export Oriented RMG factory and
why worker unrest happening in Bangladesh’

5.  The garments industry in Bangladesh is one of the key drivers of economic growth
 The sector contributes significantly to the GDP
 The RMG sector has experienced an exponential growth since the 1980s
 Is now a multi-billion dollar manufacturing industry
 74 % of total export earnings
 In the 1980s, there were only 50 factories employing only a few thousand people
 Now there have almost 7,500 factories & more than 4.2 million people are working in this
sector
 Bangladesh garments industry has experienced recent tragedies and is now more than ever
expected to be environmentally conscious

6.  Concorde Garments Group (CGG) one of the oldest & leading readymade garments factory in
Bangladesh
 Founded in 1983 by Mr. Sayeeful Islam (Managing director) it’s a 7th RMG factory in BD
 STATISTIC / CAPACITY of CGG:
 CONCORDE GARMENTS LTD.
 15 production Lines
 700 sewing machines, about 40% of which are auto-trimming
 1850 employees
 95,000 sq. feet factory area
 Monthly production capacity: 450,000 ~ 500,000 PCs

7.  TULIP GARMENTS LTD.
 4 production Lines
 225 sewing machines, about 40% of which are auto-trimming
 500 employees
 35,000 sq. feet factory area
 Monthly production capacity: 100,000 ~ 125,000 PCs
 By mid-2014, with CGG’s new unit, CGG is expecting the combined capacity will increase up to 30 production
Lines
 Total 900,000 PCs Shirts and Ladies Blouses per month

8.  CGG compliance approved by the following organization
 GSV
 ISO 9001: 2008
 CT-PAT
 WRAP – Worldwide Responsible Apparel Production
 WCA – Workers Conditions Assessment
 Sedex
 BGMEA

9. Sl. No Name of Machine Quantity
1 SNLS(with thread trimmer) 1122
2 SNLS(with Edged cutter) 153
3 SNCS 153
4 DNLS 102
5 5 Needle Over lock 51
6 FOA(Feed of the arm) 102
7 MNLS (Kansai) 51
8 Button Hole machine 153
9 Button attach machine 102
10 Bartack machine 51
11 Fusing Machine(Coller and Calf) kannegiesser 4
12 Body part fusing machine 17
13 Electric fabric cutting machine 56
14 Coller forming machine 18
15 Coller turning machine 51
16 Thread shucker machine 15
17 Steam iron table and iron 135
18 Coller band machine 5
19 Metal detector machine 3
20 Barcode checking machine 4
Total Quantity of Machine in CGG Factory 2348

10.  BOARD OF DIRECTORS
Sl. No. Name Designation
1 Mr. Sayeeful Islam Managing Director
2 Mr. Raiyan Islam Director
3 Brigadier general Rabbani (Ret.) CEO
4 AKM Sohan Alam CFO
5 Mr. Induka N Sudirikku Director Production
6 Major general Aktaruzzaman (Ret.) GM-HR
7 Mr. Aktar Hossain DGM- Marketing

11.  ORGANOGRAM OF CONCORDE GARMENTS GROUP

12.  SISTER CONCERN OF CONCORDE GARMENTS GROUP
 Concorde Garments Limited (Mirpur)
 Tulip Garments Limited
 Osman Interning
 Osman Accessories Limited
 Architectural Glass
 Concorde Garments Limited (Kathgora, Savar)

13.  Product range and categories

14.  Year on Year Progress
0
20
40
60
80
100
120
140
160
1983-1990 1991-1995 1996-2000 2001-2005 2006-2010 2011-2013
Yearly Turnover In Million USD

15.  MAJOR CLIENTS OF CONCORDE GARMENTS GROUP

16. 1. Finance and Commercial department
2. HR department
3. Merchandising department
4. Sample department
5. Store/warehouse
6. Cutting and Fusing department
7. Sewing and production department
8. Finishing and Packaging department
9. Quality control department
10. Compliance

17.  Merchandising: Concorde garments group’s merchandising department situated near to their
production department at Mirpur-07. In elaborately, Merchandising is a process through which
products are planned, developed, executed and presented to the buyer. It includes directing and
overseeing the development of product line from start to finish.
 ACTIVITIES OF THIS DEPARTMENT
 Product Development
 Market and product Analysis
 Booking orders
 Designing and Sampling
 Costing(CM, C&F, CIF, FOB)
 Production Follow Ups
 ETC.

20.  MY DAILY ACTIVITY
 Preparing and maintaining swatch card
 Scanning documents
 Proper filling the documents
 Sample follow-up
 Taking the photos of samples
 Mail communication
 Collecting production information
 Reporting to concern supervisor
 Overviewing Production line
 Observing how to run a sewing machine and other machine
 Observing how to inspect garments accessories and fabric
 How to fold garments and pack in cartoon

21.  MY WEEKLY ACTIVITY
 Meeting with the fabrics and accessories supplier
 Making accessories list
 Meeting with the buyer and buying houses
 RECOMMENDATION
 My recommendation is that management should be stricter about the sample section and they should provide
a formal briefing or one or two day’s workshop before starting internship program.

22.  RUMOR
 FEAR OF LOSS JOB
 JHUT BUSINESS
 CASE WITH POLICE STATION
 FEAR OF CLOSE OF FACTORY
 PAY HIKE & DISCRIMINATION IN GRADES
 BAD RELATIONS BETWEEN WORKERS & MID-LEVEL STAFFS
 SUDDEN ORDER CUT BY INTERNATIONAL BUYERS
 INFLATION
 LACK OF MOTIVATION AND TRAINNING PROGRAAME

23.  To learn how to run an export oriented RMG factory
 To gather the activities what’s have to do a RMG staff in a factory
 To evaluate the current situation of garments manufacturing companies in Bangladesh
 To highlight any problems identified
 To make recommendations on how to address the issues
 To identify the reason behind worker unrest

24.  Limited access to gain SOP documents
 Difficulties to communicate with factory owners
 Time constraint
 Unwillingness of Company owner & other respondent to disclose their identities

25. Different stakeholders may have different opinions about the reasons behind the labor unrest in
RMG sector. At the same time there could have different opinions regarding the probable
mechanism to address such issue in future. In this chapter opinions of different researcher and
writers regarding the cause and solution of the labor unrest in Bangladesh will be discussed.
 Grievance of labor was the center of the labor unrest
 Agreements with Garment Workers not honored
 Non implementation of minimum wage
 Lack of tolerance of the labor was reason behind that unrest
 Other interested Parties

26.  Methods of Collecting Data
 Face to face conversation with the owner of the garments, workers, labor union leaders and staff
 Content analysis
 Facts and literature review
 Collection of relevant information
 Newspaper review
 Source of Data
 The primary sources
 The Secondary sources
 Variables Covered
 Hypothesis and Question Testing

27.  Question
 Is there any formal body (labor union) that represents labor in any negotiation?
 Is that labor union registered?
 Do you think labor union got necessary scope to play their responsibility then?
 What role labor union could play to mitigate that crisis?
 Hypothesis
 There is a significant relationship between Garments workers and Garments Owner in Concorde as well as
other garments.

28.  Ready-Made- garments (RMG) industry has the higher contribution to earn foreign exchange
 In our country inside the RMG factory there have far difference between worker and
management staffs.
 Due to lacking of honor in our RMG worker that’s why worker unrest happening
 Our neighbor country doing huge criminality behind this sector
 Lacking of worker union in our counties RMG factory
 Need to reconstruct relationship between worker and staffs relationship
 Need to form worker union in RMG factory

29. The market is becoming more competitive day by day but the organization believes that with the
innovative planning and strong management team, the group can boost its position in the market.
It is the innovations and changes with time that have kept the company on course. The group
believes that all these efforts described above, can help fulfill its vision. ‘To be the most regarded
company in Bangladesh by 2015‟.