Executive summary
Savar textile Ltd is one of the most experienced and successful garments company in Bangladesh. It exports its product in E.U and America. Savar textile has a reputation of making quality garment.
For the betterment of the company, Savar textile has to concern about the improvement sector which has been identified as health and safety, motivation and improving delivering performance. After that a ‘why why’ analysis chart has been constructed to understand the causes of problem.
Then the three of methods has been described which will help us to understand the basics of the theories Continuous improvement, radical change and Six Sigma. Choose a specific change which is essential for Savar Textile Ltd also mentioned the reason of choosing the methods to encounter the problem and the advantage of choosing the methods.
In this stage the definition of project is given and the timeline of the project staring date and the ending date of the project is mentioned this project has a life line of maximum 2 years. To run the project we need a budget so, we have made an estimated budget for Savar textile Ltd. For allocating task of the entire project we have used the tool Gantt chart. It is also important to mention the roles and responsibilities of the organization so we have described it briefly.
Last of all definition of risk has been stated, evaluating the types of risk and how to overcome those risks to finish the project, who is responsible for the risk management, how it will be encountered strategically.
Chapter- 1
1.0 Introduction
Savar textile LTD is one of the leading garments in Bangladesh it was established in 1982 by the owner Mr. Touhid Samad. It is one of the experienced garments company in Bangladesh.
The head office is located at the heart of Dhaka city just behind pan pacific shonargaon hotel in BGMEA complex at 9th floor. Savar textile is the parent company of Bangladesh general insurance company and Independent university of Bangladesh.
Savar Textile has their factory of 8 storied building just outside Dhaka in Savar area, also their dye factory is situated between Dhaka-aricha highways just beside Bongshai River.
Savar textile has got 5 different departments in their factory in terms of production which is knitting, swing, dye, finishing and packing; their product line is socks, undergarment, T-shirt, tights and sportswear. Also Savar textile LTD got HRM, Production, Quality control, inventory, Health & safety, Medical, Day care and fire departments in their factory.
Savar textile got about 1300+ employees all together in both office and factory. Their production is 18 hours a day it runs in two shifts which is day and night.
Savar textile has a reputation of producing excellent quality garments clothing rated as ISO 2001 and their major customers are H&M, Us Polo, Next, Zeeman, O’Neill, New look and Bata these are the known retailers across the universe so they choose Savar textile for the reputation of deliver good quality product.
1.1 Literature Review
For this Report the idea’s concepts and theories has been taken from the book operations management by Nigel Slack which helped to understand the situation of project, change, methods, risk and operation.
For the better understand of radical change I have used the book – business process redesign: for managerial radical change by .
To understand health safety of the organizations I have taken help of the book ‘Managing operations’ by Bob Johnson.
1.2 Objective
According to the module my objective is to find 3 changes Savar textile need and work with the one which is necessary and start over a project to overcome the problem by selecting a specific change and relation with the theories and also by stating it hypothetically by own point of view.
1.3 Methodology
Both primary and secondary information is used to make this report. Primary interviewing managers of Savar Textile Ltd also class lectures given by the module leader and secondary information is by using the help of the books (Slack, 2009), slides of derby, internet, journals and articles.’
Chapter- 2
2.0 Problem identification
2.1 Garments Health and safety
In Bangladesh most of the garments factory is a little back dated from the factories compared to the factories in EU. Savar textile follows basic health and safety instruction but they need more equipments and gadgets which is needed regarding operating the machineries for example: while operating swing machines employees must wear safety goggles or needles might break and run in to the eyes of the employees those who operate them.
Fire exits should be larger and has an easy access, recently there was an incident about the garments collapse in Savar Rana plaza, and it was very tough for the garments worker to escape that building because of its narrow Fire exits. So, learning from mistake Savar textile should adopt a large fire exit so the employees can exit the building easily.
Health and safety is the rights for employees to have so we cannot neglect this fact (Johnson, 1998).
Also Savar textile should make a modern factory building which has capability of resisting vibration and medium category earth quakes.
In most of the modern factories in EU, America, china and Australia they have installed automatic fire control in their factories so if there is any fire water will be showered by a pipe in every room of the factories corner to corner it will be detected automatically by fire/smoke sensors.
2.2 Improvement in delivering performance
Savar textile requires an improvement in their performance by providing training from the experienced workers after joining the company it will help new workers to operate machineries, production and maintain rules & regulation of the company. It will also help Savar Textile to maintain the production flow.
2.3 Motivation
In third world country like Bangladesh most of the managers and owners are not that concerned about motivating the employees they only motivates employee by providing bonus at the holidays like Eid-ul-fitre and Eid-ul-azha but they are not supporting or motivating employees mentally by keeping good relation and providing good suggestion with smile which will encourage them to work hard. So savar textile should also adopt this kind of motivations to get efficient work the employees.
2.4 Why why analysis
Fig 1.1 why chart for the health and safety of Savar Textile Ltd.
In the chart above fig 1.1 we can see why Savar textile limited is facing health and safety issues, at first ‘lack of knowledge’ Bangladesh is a third world country people are not quite familiar with the word health and safety because it wasn’t practiced before because Bangladesh is transforming from agricultural to industrial country, so they have lack of updated information, Lack of system modification information and lack of information of safety procedures. Most of the garments company in Bangladesh doesn’t provide any training on health and safety because they are not aware of it. Because of negligence of the managers and top levels, Savar textile employees who works in the factory has no training on overcoming the hazards how they will react like if there is fire in the building. Also training is expensive and time consuming. Last of all ‘lack of new technology’ in Bangladesh, in most of the first world country latest technologies are used to overcome health and safety issues so latest technology are not available in Bangladeshi market.
Chapter 3
3.0 Evaluation of methods
Three types of methods can be used for improving Savar textiles identified problems.
3.1 Continuous improvement
Continuous improvement is a process where the process is slow and stable which is continued for a long time period to improve business performance step by step and also it has an advantage updated way can be used between these periods of time. Kiejen is a Japanese word of continuous improvement. (Slack, 2009)
3.2 Radical change
Radical change is a break through change rather than continuous change (Slack, 2009) where change is needed urgently for the benefit of organizational operation for example health safety is a major issue for Bangladeshi garments industry where garments worker need a safe environment to work in their daily working life. It can be also for used in terms of using new technology to focus on the operation of the organization and it redesigns the business.
3.3 Six Sigma
Is a disciplined methodology of defining, measuring, analyzing, improving, controlling the quality in every one of the company’s products, process and transactions with ultimate goal of eliminating all defects (Slack, 2009).
It is just in time production process which is done without any waste or defective product also maintains the quality of the product and by putting maximum effort in production. (Villanovau.com, 2014)
3.4 Methods used to solve health and safety issues
Radical change method can be used for Savar textiles Health and safety change because radical change is done to overcome the problems quickly now days, Customer pressure for maintaining health and safety, working in an unsafe factory environment have became a concern for the employees of garment industry. It is dangerous to operate machineries without safety equipment like industrial goggles and gloves if the employees not aware of using these tools which is going to cause them fatal injuries or even death which may cause major barrier for the production. So it is important to react quickly also solve these health and safety issues as soon as possible for the better future of the company and safe working environment for the employees. Radical change is applied for business practices, culture and organizational structural change. (Stoddard and Jarvenpaa, 1995, p. 85)
Changes can be examined by investigating the impact upon the business of the 3c’s (Slack, 2009)
1. Customer.
2. Competition.
3. Change.
Also for industrial sprinkler system (automated fire protection) we can use ‘Kijen’ which known as continuous improvement method it should be done to provide the safety environment for the employees of Savar Textile Ltd it will take a long period of time to finish this project and a big amount of budget is needed for adapting this technology. So it should be done step by step.
Fig 1.2 a) Radical change, b) Continuous improvement c) Combination of both radical and continuous change (Slack, 2009)
So, for Savar textile ltd both Kiejen and BPR methods can be used to get the best possible result by the combination as we can see on the Fig 1.2.
Chapter- 4
4.0 Project plan for Savar Textile Ltd.
Defining Project ‘ it is a group of activities which a fixed starting date and ending date; it chases its objective to complete its goal by using the resources land, labor and capital. It can be short operational project or big long term based manufacturing or construction project. Project varies on Cost, quality and timing; project has a target of making better from previous one by learning from the previous project ‘barriers, issues, management efficiency, technological problems, and many more.
Difference between program and a project is program is continuous which has no deadline but on the other hand project has a life line it might be 1 month, 3 months, 1 year or 2 years.
4.1 Estimated time for the project
Project time will start from 1st June of 2014 and it will end at 31st May of 2016, For this whole project to improve health and safety of Savar Textile Ltd, this project requires 2 years time to fully complete
It requires financial investment and labor. At first recruiting project managers is very essential for individual improving sectors before creating the project, also training employees by the specialized health and safety instructors they will instruct employees how to use safety equipment and when to use to it. Highly experienced engineers and contractors are required for building industrial sprinkler system in the factory and skilled workers are required for these tasks.
4.2 Budget of the project
Particulars Periods of time Estimated price (BDT)
Health safety equipment and training
Communication expenses 7 days 10000
Meeting expenses 1 day 5000
Purchasing health and safety equipment (goggles and gloves) 1 month 1400000
Training project managers for health and safety issues 1 month 10000
Training employees on health and safety (use of health and safety equipment and instruction on health and safety) 2 months 100000
Monitoring and inspection 2 years 1000000
Installation of sprinkler system
Job circular advertisement on newspaper and online for installing sprinklers
1 month
100000
Interview expenses 1 month 70000
Communication expenses on overseas 1 month 10000
Purchasing sprinkler system materials 1 month 10000000
Training expenses of installing sprinkler system 1 month 50000
Tools for installing sprinkler system 10 days 200000
Buying water tanks for sprinkler system 10 days 200000
Installation of sprinkler system 4 months 3000000
Monitoring sprinkler system 1 year 500000
Maintenance of sprinkler system 1 year 500000
Engineers wages for maintenance of sprinkler system 1 year 2000000
Gadgets and tools for maintenance 1 year 500000
GRAND TOTAL 19,655,000
4.3 Gantt chart for the project
4.4 Roles and responsibilities
In an ongoing project the responsibilities goes to the project team, they plan for the day to day basis at operational level of project and also the structure of the project. On the project of Savar textile’s health and safety project manager and project supervisor monitors operational levels of the project and eliminates risk or barrier factors of the project, it is very important for the manager to clearly understand the roles of project team, where should they work in the project, dividing project team according to their skills and sectors, also managers should keep in mind about the project environment which has a direct link with stake holders (Slack, 2009).
In every project there project crew plays a role without project crew project cannot be finished they do the daily based work to finish the project on time.
Financial advisors of the project secures the spending of the project how much spending the project needs and how to finance it either lending it from the bank or transferring from the fund of the company.
For overall monitoring there is someone appointed for the project from among the directors, this person will do the high level thinking of the project and the plan to improve it. Project director monitors the performance of the project.
Chapter-5
5.0 Risk management
Risk management is eliminating percentage of reducing the chances of project going wrong or fall in to the wrong direction (Slack, 2009).
Risk arises depending on the size of project no matter how large the project or smaller the project there is risk in step of the project so the management helps to overcome the risk of the business (Slack, 2009).
It is the duty for the project or operational managers to monitor and plan how to overcome them, the making strategic decisions (Slack, 2009). So is it better to reduce the amount risk
If the reason of risk is known to the managers they can prevent the chances of failure by brainstorming and finding out its solution. Most of the chances of risk arise because of things which has been avoided or by negligence of the project team. So it better not to ignore anything which may cause a minor or major risk in future. (Slack, 2009)
5.1 Types of risk –
1. Supply failure – Any failure in timing or miss timing can cause this problem it causes in terms of miss delivery of the product or essentials. It can be wrong or faulty items which can cause delay in the project, which isn’t very good for finishing project on time.
2. Human failure ‘ In this case two types of human failure can be defined, first of all if a person becomes sick, die or unable to work and secondly if the person is working but making mistake Quite often.
3. Organizational failure ‘ It is the failure of process and procedures, its maybe caused by overload of the process and procedures.
4. Technology and facility failure ‘ It is most known as ‘technological errors’ which can be caused by the failures of IT, machineries and equipments used in the project.
5. Product and service design failure ‘ It can be caused during the design stage of the product done by R&D departments.
6. Customer failure ‘ This may cause if the customer is not satisfied with product and not delivering the product with in time.
7. Environment disruption ‘ all the cause of failure that lies outside of an operations direct influence (Slack, 2009).
5.2 Preventing Risk
Savar textile may face risk in production, organizational culture, environment disruption while running the project so project manager has to make sure this project doesn’t hamper in production of the garment by disturbing employees while working, employees shouldn’t adopt temporary culture of the organization and while working project team has to keep in mind that they shouldn’t untidy the factory environment or not to shuffle any tool or machineries in factory.
This is very important Savar Textile has to export their garments on time to the buyers so any minor mistake while running project can hamper in the production which may cause financial crisis in the future. So for preventing risk at first stage manager have to identify the cause of the failure, look for the most possible solution for the project, then the managers can see the archive of the previous project and how they have tackled the problem, by consulting with the experienced person, also by analyzing the risk/failure to the core and by using analytical tools like S.W.O.T.
Also the managers has to have a backup plan for every step of the project so if anything goes wrong managers can use back plan.
Conclusion
In Bangladesh health and safety practice is rarely seen in terms of production so after finishing these project Savar textile can proudly say they are following full health and safety instruction so which is going to arise pressure for others garments company to follow health and safety instruction.
Also the customers (buyers) of Savar textile can trust with the manufacturing procedures health and safety is a part of manufacturing procedure. So Savar textile has used radical chance and continuous improvement methods to improve health and safety sector, after the project employees of Savar textile can be stress free by working in safe environment with the proper equipment and tools.
I would also recommend other Garment companies to follow health and safety instruction, keep someone to monitor it and give that person the authority to action those who breaks health and safety instructions. Recently we have faced a big disaster last year in Savar Rana plaza which caught eyes of most of the people in the world and created a bad impression about health and safety in Bangladesh so we have to change that thinking of others by maintaining the health and safety strongly.
Bibliography
Slack, N., Chambers, S. and Johnston, R. 2010. operations management. 6th ed. Essex: Pearson Education Limited.
Stoddard, D. B. and Jarvenpaa, S. L. 1995. Business process redesign: tactics for managing radical change. Process Think: Winning Perspectives for Business Change in the Information Age, p. 85
Villanovau.com. 2014. Six Sigma vs. Lean Six Sigma. [online] Available at: http://www.villanovau.com/six-sigma-vs-lean-six-sigma/ [Accessed: 8 Apr 2014]
Wikipedia. 2014. Six Sigma. [online] Available at: http://en.wikipedia.org/wiki/Six_Sigma [Accessed: 10 Apr 2014].
Johnson, B. 1998. Managing operations. Oxford: Butterworth-Heinemann.
Alam, M. 2014. Savar Textile LTD and Its Health & safety. Interviewed by Faisal rahman [in person] Savar,Dhaka, 01/04/2014
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