A welcome address from the President of BIFT, Mr. Muzaffar Uddin Siddique
Cheif guest Mr.Abdus Salam Murshedy, President BGMEA.
John T. Smith International Coordinator BQSP, UNIDO.
Summary of Center for Export & amp;Product Development(CEPD)Seminar 20.02.2010
Introduction:
The Center for Export and Production Development (CEPD) was created to address the specific needs of the entrepreneurs of Bangladeshi Ready Made Garments (RMG) sector who want to improve their business opportunities through offering value added products to retailers/buyers. The BGMEA Institute of Fashion & Technology (BIFT) was developed to work as a feeder institution supplying a well trained workforce to the garment’s industry—this serves the industry with a long term supply of skilled workers. However the RMG sector is driven by the needs of the buyers—buyers demand quality and the shortest lead time from production to export. Today the contractor has to provide a “full package” which includes expanded services in design (product development) and merchandising as well as direct selling. Under escalating international competition and the changing market requirements, “low wages” alone will no longer allow the Bangladeshi RMG sector to compete effectively. The RMG sector must develop its ability to swiftly develop, manufacture and deliver new products to the market. The CEPD has been established to assist Bangladeshi entrepreneurs with the immediate fulfillment of short and long term needs. The CEPD aims to:
• To link academy and industry by doing research relevant to business; and also by encouraging collaborative projects linking business and industry
• To provide short training courses to workers in the RMG industry to improve technical skills.
• To be a networking hub for graduates and a recruiting hub for industry to link graduates and relevant industries together.
• To link academy and industry by doing research relevant to business; and also by encouraging collaborative projects linking business and industry
• To provide short training courses to workers in the RMG industry to improve technical skills.
• To be a networking hub for graduates and a recruiting hub for industry to link graduates and relevant industries together.
Methodology:
The CEPD was launched October 11 of 2009 and the first seminar was held on 20th of February, 2010. Besides the first one, the CEPD plans to run a series of seminars inviting entrepreneurs from the RMG sector to discuss and summarize the most vital services needed for their industry. Based on the results of the seminar the CEPD will offer the first batch of training with the help of international experts in April 2010.
Workshop outcome
The first seminar was in held the CEPD room and hosted by BIFT and UNIDO/ EU. It was held on 20th February and attracted approximately thirty entrepreneurs from mid to high level RMG units in Bangladesh. Also attending were members of United Nations Industrial Development Organization (UNIDO), three representatives from GSD Incorporated, as well as several directors of the Bangladesh Garment Manufacturer’s and Exporter’s Association (BGMEA). The chief guest was President of the BGMEA, Mr. Abdus Salam Murshedy.
The program began with a welcome address from the President of BIFT, Mr. Muzaffar Uddin Siddique, who welcomed those attending and commented on CEPD’s potential to contribute in vital ways to the RMG sector. Mr. Siddique went on to state that the aim of the Center for Export and Product Development (CEPD) is to promote quick response manufacture and new product development through provision of technical support services to the industry. He added that faced with the recent global economic crisis, the setting of CEPD is extremely timely for the RMG sector in Bangladesh and this half day forum was an important mechanism to achieve the objectives for promoting new services to the industry.
Mr. John T Smith from UNIDO introduced CEPD by stating that the CEPD was established to support BIFT’s mission to become a more proactive research led institution; Mr. Smith went on to state that it is vital for Bangladeshi RMG manufacturers to react to rising costs in both manufacturing and labor, he stated that it is no longer possible for Bangladeshi industry to continue to supply the bottom end of the international market but that manufacturers must start making value added products. Mr. Smith warned that the Bangladeshi industry must begin to innovate or die. Mr. David Berry, Director of Sales and Marketing at GSD Incorporated, delivered the key note presentation. Mr. Berry emphasized the importance of using scientific analysis systems such as those provided by GSD. Introduction of standardized time systems during all manufacturing processes, from cutting to packing, was also promoted by Mr. Berry to improve efficiency and productivity.
The keynote speech by Mr. Murshedy expressed, from his point of view, the difficulties facing the RMG sector at the moment. Mr. Murshedy began by pointing out that, as stated by the WTO in 2009, Bangladesh is the fourth largest RMG exporter in the world. The RMG sector also provided 80% of Bangladesh’s exports and Mr. Murshedy emphasized, that it is imperative, for the sake of the national economy, to make the RMG industry sustainable in the long term. He expressed concern for the current productivity level of 30-35% in the Bangladeshi industry compared to competitors whose productivity rate is often as high as 80%. Also pointed out was that the world of Ready Made Garments is more competitive at this time than ever before and that Bangladesh faces intense competition from many countries in Asia and Africa. He highlighted the need for RMG manufacturers to patronize research in order to ensure their market-share at the present level. Mr. Murshedy concluded by stating that it is vital to support institutions such as the CEPD at this transitional moment in the history of the RMG industry in Bangladesh.
The delegates were then divided into four working groups and had to outline ideas/initiatives for the training services, employability services and asked to express thoughts on how the CEPD should be managed. Please see below for notes from the forum.
Workshop outcome
The first seminar was in held the CEPD room and hosted by BIFT and UNIDO/ EU. It was held on 20th February and attracted approximately thirty entrepreneurs from mid to high level RMG units in Bangladesh. Also attending were members of United Nations Industrial Development Organization (UNIDO), three representatives from GSD Incorporated, as well as several directors of the Bangladesh Garment Manufacturer’s and Exporter’s Association (BGMEA). The chief guest was President of the BGMEA, Mr. Abdus Salam Murshedy.
The program began with a welcome address from the President of BIFT, Mr. Muzaffar Uddin Siddique, who welcomed those attending and commented on CEPD’s potential to contribute in vital ways to the RMG sector. Mr. Siddique went on to state that the aim of the Center for Export and Product Development (CEPD) is to promote quick response manufacture and new product development through provision of technical support services to the industry. He added that faced with the recent global economic crisis, the setting of CEPD is extremely timely for the RMG sector in Bangladesh and this half day forum was an important mechanism to achieve the objectives for promoting new services to the industry.
Mr. John T Smith from UNIDO introduced CEPD by stating that the CEPD was established to support BIFT’s mission to become a more proactive research led institution; Mr. Smith went on to state that it is vital for Bangladeshi RMG manufacturers to react to rising costs in both manufacturing and labor, he stated that it is no longer possible for Bangladeshi industry to continue to supply the bottom end of the international market but that manufacturers must start making value added products. Mr. Smith warned that the Bangladeshi industry must begin to innovate or die. Mr. David Berry, Director of Sales and Marketing at GSD Incorporated, delivered the key note presentation. Mr. Berry emphasized the importance of using scientific analysis systems such as those provided by GSD. Introduction of standardized time systems during all manufacturing processes, from cutting to packing, was also promoted by Mr. Berry to improve efficiency and productivity.
The keynote speech by Mr. Murshedy expressed, from his point of view, the difficulties facing the RMG sector at the moment. Mr. Murshedy began by pointing out that, as stated by the WTO in 2009, Bangladesh is the fourth largest RMG exporter in the world. The RMG sector also provided 80% of Bangladesh’s exports and Mr. Murshedy emphasized, that it is imperative, for the sake of the national economy, to make the RMG industry sustainable in the long term. He expressed concern for the current productivity level of 30-35% in the Bangladeshi industry compared to competitors whose productivity rate is often as high as 80%. Also pointed out was that the world of Ready Made Garments is more competitive at this time than ever before and that Bangladesh faces intense competition from many countries in Asia and Africa. He highlighted the need for RMG manufacturers to patronize research in order to ensure their market-share at the present level. Mr. Murshedy concluded by stating that it is vital to support institutions such as the CEPD at this transitional moment in the history of the RMG industry in Bangladesh.
The delegates were then divided into four working groups and had to outline ideas/initiatives for the training services, employability services and asked to express thoughts on how the CEPD should be managed. Please see below for notes from the forum.
Results:
The CEPD will offer training programs in the following areas to improve the productivity of the industry. These are the needs described during the seminar along with the companies which requested them:
• Design development/ Product Development: Understanding design and producing the sample efficiently, fashion trends and fabrication talks and presentations, CAD/CAM for design, pattern design – Onus Group, Islam Group, Rafi Texmode Ltd, Urmi Group, Islam Garments
• Skilled labor/ training of labor—Onus Group, Islam Group, Northern Group
• Trend forecasting: trend information and entering new customer markets/ access to market intelligence—Islam Garments
• Training of mid-level management, strategic management skills, executive management skills/leadership—Onus Group, Islam Group, Specific Group
• Productivity & efficiency—Apparels Village/Fayaz Apparels, Specific Group, Urmi, Modern Garments, Abedin Fashions
• Industrial Cost Management: ensuring maximum productivity by workers, avoiding waste of materials/products—Northern, Apparels Village/ Fayaz Apparels
• Marketing &Negotiations: marketing products and negotiating prices with buyers —Naz Bangladesh
These presentations were vital for the CEPD. Each individual presented what they perceived to be the most relevant needs of the industry at them moment. The analyses of thoughts expressed by entrepreneurs are summarized below:
Product Development and design was a topic frequently cited by Managing Directors concerned with having an edge when presenting themselves to international buyers
Productivity, in general, was also a major concern as related to work and lead time
Industrial cost management. Elimination of waste/ budgeting materials/ making maximum use of resources
Implementation of thought into companies. Knowing how to implement abstract theoretical/ academic concepts into the real world practices of RMG industry
Negotiation skills for those working directly with buyers.
Marketing skills
Fashion trend forecasting/ fashion design trading/ attending conferences abroad
Achievement :
The first seminar produced much useful information for the CEPD. The entrepreneurs listed their most pressing concerns. This was an important way to get an overview of the summary of the needs of the garments industry. The outcome of this seminar will help us to offer the first batch of training with help of international experts in April 2010 from CEPD. At the same time we would offer the second CEPD seminar at a large scale where at least 100 entrepreneurs could participate in that program.
Recommendations :
It is recommended to plan at least one more seminar with the guidance of international experts is organized, at a large scale, in the month of April. The second seminar will determine the content of training courses offered in May/June. These discussions with entrepreneurs will help to ensure that the curriculum ultimately developed is more relevant and therefore more in demand. However, it is highly recommended that these seminars and courses are run as close together as possible to take advantage of the initial level of excitement. The first training courses will be held in mid-April and international experts will run them. The courses will be over four days, held for a half day. They will be advertised in the newspapers and online. Soon the CEPD will send dates and the key points to those who attended our first seminar.
Many executives expressed concerns about the overall productivity of their companies. They sought knowledge on the training of mid-level management, worker training and cutting production times. These are all important concerns and the CEPD needs to discuss and plan ways to aid in alleviating these problems.
• Design development/ Product Development: Understanding design and producing the sample efficiently, fashion trends and fabrication talks and presentations, CAD/CAM for design, pattern design – Onus Group, Islam Group, Rafi Texmode Ltd, Urmi Group, Islam Garments
• Skilled labor/ training of labor—Onus Group, Islam Group, Northern Group
• Trend forecasting: trend information and entering new customer markets/ access to market intelligence—Islam Garments
• Training of mid-level management, strategic management skills, executive management skills/leadership—Onus Group, Islam Group, Specific Group
• Productivity & efficiency—Apparels Village/Fayaz Apparels, Specific Group, Urmi, Modern Garments, Abedin Fashions
• Industrial Cost Management: ensuring maximum productivity by workers, avoiding waste of materials/products—Northern, Apparels Village/ Fayaz Apparels
• Marketing &Negotiations: marketing products and negotiating prices with buyers —Naz Bangladesh
These presentations were vital for the CEPD. Each individual presented what they perceived to be the most relevant needs of the industry at them moment. The analyses of thoughts expressed by entrepreneurs are summarized below:
Product Development and design was a topic frequently cited by Managing Directors concerned with having an edge when presenting themselves to international buyers
Productivity, in general, was also a major concern as related to work and lead time
Industrial cost management. Elimination of waste/ budgeting materials/ making maximum use of resources
Implementation of thought into companies. Knowing how to implement abstract theoretical/ academic concepts into the real world practices of RMG industry
Negotiation skills for those working directly with buyers.
Marketing skills
Fashion trend forecasting/ fashion design trading/ attending conferences abroad
Achievement :
The first seminar produced much useful information for the CEPD. The entrepreneurs listed their most pressing concerns. This was an important way to get an overview of the summary of the needs of the garments industry. The outcome of this seminar will help us to offer the first batch of training with help of international experts in April 2010 from CEPD. At the same time we would offer the second CEPD seminar at a large scale where at least 100 entrepreneurs could participate in that program.
Recommendations :
It is recommended to plan at least one more seminar with the guidance of international experts is organized, at a large scale, in the month of April. The second seminar will determine the content of training courses offered in May/June. These discussions with entrepreneurs will help to ensure that the curriculum ultimately developed is more relevant and therefore more in demand. However, it is highly recommended that these seminars and courses are run as close together as possible to take advantage of the initial level of excitement. The first training courses will be held in mid-April and international experts will run them. The courses will be over four days, held for a half day. They will be advertised in the newspapers and online. Soon the CEPD will send dates and the key points to those who attended our first seminar.
Many executives expressed concerns about the overall productivity of their companies. They sought knowledge on the training of mid-level management, worker training and cutting production times. These are all important concerns and the CEPD needs to discuss and plan ways to aid in alleviating these problems.
Implementation:
There will be CEPD training sessions in the month of April and further training sessions will also be organized later in the year.
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