Thai Garment Industry

Overview of Thai Garment Industry Important Statistics ItemsValue Total Thai garment export valueApprox. 3,200 million USD Total Thai garment Domestic valueApprox. 5,000 million USD Total number of garment factories in Thailand2,200 (90% are SMEs) Number of local brandApprox. 1,000 brands Number of people working in Thai garment industry Approx. 900,000 people

SMEs OEM (Own Equipment Manufacturing) SMEs OEM (Own Equipment Manufacturing) SMEs ODM (Own Development Manufacturing) SMEs ODM (Own Development Manufacturing) SMEs OBM (Own Brand Manufacturing) SMEs OBM (Own Brand Manufacturing) How SHARE helps Thai SMEs Government

Mar, 2011 Thai Garment Development Foundation

Corporate Profile & Objectives Thai Garment Development Foundation or SHARE is formed in November 1994 by government and private sector The organization running under the concentration on delivering competitiveness solution

Mission To Strengthen Thai Fashion and Apparel SMEs to ASEAN by creating value-added and reducing cost.

What we do To serve and increase competitiveness of Thai Apparel Industry by creating value-added and reducing cost. Human Resource Development Continuous Development Knowledge, Skill, Attitude and competencies development All level(Operator,Middle,T op management) Industrial competency standard Education Resources Management Sustainable Development Education Sector Collaboration (Vocational, University) Productivity Development Reducing Cost. Creating Value-Added Productivity improvement Product Develop ment Product Development Product Development

What is SHARE Business Network ?

Human Resource Development Education Resources Development projects 5 projects 371,170,000 million baht / year 1 8 projects 190 companies Increase value / reducing cost for industry Product Development 4 projects Productivity Development Our past projects and performance

Best Practices II Sustainable Productivity Improvement 55 companies 8 companies 1 company Productivity Development Productivity Development TPM LEAN THTI 4 companies Cost reduced by 8.96 million baht / year Cost reduced by million baht / year 68 companies Our past projects and performance Cost reduced by 2.71 million baht / year

Product Development Product Development Pattern Workshop Training 2 Courses 36 people 2 Companies Fashion Muslim Product Developing -Under wear / Swimmer - Lady wear Best Practices (Sample Room) 5 Companies 19 Companies Our past projects and performance

Organization Behavior Development Garment Skills Development Competency Assessment Test 1 Companies 254 people 1 Time - ACP Apparel Co., Ltd. - MCAP Erawan Co., Ltd. Human Resource Development In-house Training 4 Courses 12 Companies Career Development 78 people - 20 courses 65 companies -Garment Merchandiser Competency Test from23 companies 74 candidates - Sustainable Improvement - Motivate to work happily for an entire organization -Self inspection for production dept. (sewing) - Waste reduction 103 companies

2 Courses 1 Time - Cooperative study project with RMUTK Education Resources Management 2 Times Career Center 1 Time VQ: Vocational Qualification Cooperative study New skilled labors recruitment for the industry Teaching Media Development 1 Topic - Bachelor degree of engineering - Bachelor degree of industrial engineering at RMUTSV

The Project of Best Practices Example Sponsored by Department of Industrial Promotion

Best Practice concept “Help each other, exchange and learn together”

Best Practices Modules Production Planning and Control Sample Room and Prototype Improvement Material Utilization Lean Manufacturing Multi Skill Development Japanese Advanced Production System

Best Practice Success case Productivity Improvement and Cost Reduction by Multi-skills Grand Knit Wear Co., Ltd. A medium size company with approximately 300 machines

Before After Space consuming Long production line Double work Time consuming Production line was rearranged by sitting next to each other so that workers can see the works amount of their teammates. Quality control was brought in place at the line’s end for immediate inspection. Result in Sewing line improvement Start Finish

Results TopicTargetBeforeAfter Efficiency increase ≥ 10% 80 pieces 160 pieces (100%) Rework decrease ≤ 5% 30 pieces 10 pieces (200%) WIP decrease ≥ 20% 132 pieces 70 pieces (88.5%)

Improving Stages 1.Adjustment of production from work process focused to goods produced focused. 2.Reduction of Work-In-Process by changing from bundle system to one-piece- flow system. 3.Revision of workers’ compensation system. 4.Changing workers’ attitude. 5.Supervisors focus only production alone. 6.Prepare sewing manual for common products. 7.Determine group compensation.

Productivity Improvement and Cost Reduction by Production Planning & Control Heart & Mind Co., Ltd. A medium size company with approximately 300 machines Best Practice Success case

Before After Space consuming Time consuming Reducing time by giving out fabric according to more precise calculation Better on-time delivery of fabric to production dept. due to process reduction Result in Fabric inventory improvement Use the whole lot of fabric Receiving withdrawal card Giving fabric as stated in the card Restocking the left-over fabric Receiving withdrawal card Use the fabric as stated in the card Giving fabric as stated in the card

Results TopicTargetBeforeAfter Efficiency increase ≥ 5% 59% 62.5% (5.9%) Lead Time decrease ≤ 5% 39 days 37 days (5.1%) OTP increase ≥ 20% 55.2%69% (25%)

Improving Stages 1.Reducing Lead-time in fabric inventory department by redo the process of giving and restocking fabric, reducing the process of withdrawing fabric for cutting, reducing time for fabric inspection. 2.Reducing production cost by reducing the percentage of sewing accessories purchasing,

Productivity Improvement and Cost Reduction by Lean Production Central Garment Factory Co., Ltd. A medium size company with approximately 300 machines Best Practice Success case

Before After Result in Process line improvement The length of work flow is 20.5 meters. The length of work flow is reduced to 10 meters (46.3%)

Results TopicTargetBeforeAfter Productivit y increase ≥ 10% 4,480 pieces 6,780 pieces (51%) Cost decrease ≤ 10% Baht/piec e Baht/pieces (45%) WIP decrease ≥ 20% 2,216 pieces 706 pieces (68.8%)

Improving Stages 1.Adjustment of production line process. 2.Search and improve for 3 wastes, production, waiting time and motion. 3.Connection of Boxer cutting dept. to sewing dept. and control of work and equipment using Kamban system with Andong system for failure detection. 4.Self-inspection of work in each process. 5.Setting up a standard of procedures (SOP).

Productivity Improvement and Cost Reduction by Sample Room Development Neo Apparel Co., Ltd. A medium size company with approximately 300 machines Best Practice Success case

Before After Result in Sample room improvement Late sample delivery Long Lead Time Not Right First Time No Standard of Procedure Prepared sample plan/status for follow up Prepared sample production plan Prepared a form for purchasing sample Creating Prototype Standard pattern Creating Pattern Manual Improved size spec form Creating Prototype Pattern for embroidery Improved sample order card Creating manual for correct cutting Creating sewing technique manual and critical point Etc.,

Results TopicTargetBeforeAfter On Time Sample Delivery increase ≥ 10% 38%48.28% Lead Time Reduction decrease ≤ 10% 13 days 7.5 days(42.3%) Not Right First Time decrease ≥ 30% 93%31%

Improving Stages 1.Prepare work flows by applying lean manufacturing concept to reduce waste. 2.Prepare Master Plan and Load Analysis. 3.Implement Design Engineering based on actual production and cost according to the need of customers. 4.Implement Risk Assessment. 5.Prepare Master Pattern. 6.Re-organize for a friendly environment layout.

Skills Development project For 10 careers in apparel industry in operator and supervisor levels Sponsored by OSMEP

Careers Operator / Supervisor level 1.Production Planning and Control 2.Merchandiser / Retail 3.Purchasing 4.Pattern technician 5.Cutting 6.Sewing 7.Sample room management 8.Quality Control 9.Sewing machine mechanic 10.Trainer for industrial sewing machine

Pre-Test Training Post- Test On-the- job evaluation

Result in skills improvement BeforeAfter Average Test Score = 48% From 254 candidates in 10 careers Average Test Score = 75%

SHARE activities Teacher’s Training Session

SHARE activities Best Practices & TPM 68 Factories participated Total Cost reduced by $12 Million / year

SHARE activities Productivity Improvement for SMEs Skills Improvement for SMEs 25 Factories participated Total Cost reduced by $1.8 Million / year Over 250 personnels participated Over 80% satisfaction rate from employers

SHARE activities Fashion Muslim 100 personnels participated Networking between manufacturers and community

SHARE activities Pattern Workshops SHARE Forums Swim wear Under wear Lady wear Swim wear Under wear Lady wear Once a month Topics variety Well-known guest speakers Once a month Topics variety Well-known guest speakers

SHARE activities Corporate Social Responsibility (CSR) Education segment Apparel focused Education segment Apparel focused

SHARE executives & staff

Future Multi National Projects for SMEs Experts Exchange and Study Visit Merchandiser Pattern Technician Productivity Improvement Competencies Improvement Targeted Countries China, South Korea, Russia, UAE, India and etc.

International SMEs Networking Collaboration Annual conference Etc., Targeted Countries Russia, India, China, South Korea, Etc., Future Multi National Projects for SMEs

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