2.  On request of textile and apparel industry, Ministry of Textile Industry got approved necessary funds from EDF Board for conducting productivity benchmarking study of various sub-sectors of textile industry in 2006.  M/s Werner International Consultants, USA were appointed as consultants for conducting this study.  APTMA signed TORs with consultants and coordinated study for the sub-sectors like Spinning & Weaving.  Study for other sub-sectors was coordinated either by respective association or Werner had contacted the willing companies directly.

3.  To identify the benchmarking data which forms the optimum targets to be achieved under the present operating conditions within a product mix.  Comparison of the companies’ performance with their main competitors and with best international practices.  Provision of quantifiable measure for the parameters in terms of present and expected performance.  To conduct survey to measure the operational and labour performance of the companies. Contd………

4.  To do SWOT analysis of companies resulting in a strategic profile for them.  To use the benchmarking analysis for seeking answers of the most important questions and to identify the opportunities to improve the operational performance of each company i.e. productivity efficiency, labour force, quality, product development and use of technology.  Provision of detailed analysis regarding manufacturing capabilities and potentials to companies for improvement of their performance.

5.  Benchmarking study of 10 sub-sectors was to be conducted and 08 factories were to be included in each sub-sector.  The names of mills were provided by the respective associations.  Study of six sub-sectors has been completed and study of four sub- sectors is yet to be done:- Spinning Spinning Weaving Weaving Knit wear (processing and making-up) Knit wear (processing and making-up) Woven garments Woven garments Towel (weaving and processing ) Towel (weaving and processing ) Denim Processing Ginning Home textile Hosiery  Total 48 companies/factories of six sub-sectors were benchmarked under this study.

6.  Werner adopted the following method to investigate the actual performance of the industry:- On-site visit (3 days for each mill). Management workshop. Benchmark and Data Analysis.  After conducting the study of a sub-sector, consultants gave a presentation first to the respective association and then to MINTEX where participating factories were also invited.  Thereafter, a sector-wise report on the study was submitted by the consultants both to the respective association/mills and MINTEX.

7.  The Sector-wise report submitted by consultants contain findings on the following:-  Plant Layout,  Organizational chart,  Ratio of Direct/Indirect personnel,  Training,  Product Specifications,  Standard times,  Production control,  Production planning,  Method of work,  Line balancing,  Plant Efficiency,  Quality  Maintenance etc.

8.  Process/Methodology adopted by Consultant.  Whether recommendations of the study have been implemented by the units and if so, to what extent?  Action taken by the association on report of the consultants.  Impact/outcome of the study in quantifiable terms, on individual units/sub-sectors.  Way forward/future road map.

12. Benchmark ValueQuartileDescription 10 1º Quartile (superior) World Class Manufacture 9 8 2º QuartileMedium-High Performance 7 6 3º QuartileMedium-Low Performance 5 4 3 4º Quartile (inferior) Poor Performance 2 1 Benchmarking Methodology

13. Benchmarks Summary1234AVG Yarn storage and material handing551025,5 Production Planning610 47,5 Quality Control510 16,5 Cone re-winding55724,8 Warping78857,0 Beam storage59746,3 Sizing89957,8 Production Control910 48,3 Knot-backs and quality changes991078,8 Weaving68736,0 Machine Maintenance710878,0 Fabric inspection68867,0 Human Resources610916,5 Working methods and skills68746,3 Information Control910 27,8 Absenteeism and labor turnover37866,0 Total out of 160 points10213613863109,8

14. Benchmarks Summary1234AVG Area and building6,571087,9 Lay out67966,8 Flexibility of Machinery6,5 1077,5 Equipment suitability661087,5 Labor productivity4,53,51096,8 Energy & Water consumption5,55109,57,5 Dyes & Chemicals76987,5 Maintenance55976,5 Quality Control46,5997,1 Stocks5,65,8866,4 Safety4598,56,6 Ancillary services5,369,5 7,6 Laboratories4,54996,6 Total out of 130 points69,473,3121,5104,592,2

15. Mills Code1 M1 2 M2 3 M3 Pakistan Average EuropeMiddl e East Far East Equipment5.96.94.95.99.08.07.5 Labor Productivity 4.03.04.53.88.56.56.0 Energy and water consumptions 6.35.74.85.69.07.56.0

16. Mills Code1 M1 2 M2 3 M3 Pakistan Average EuropeMiddl e East Far East Dyes & Chemicals 5.5 4.85.39.07.5 Maintenance7.06.04.85.99.08.07.5 Addition and reworks 5.04.74.54.78.57.57.0 Environment cares 6.01.0 2.79.06.56.0

17. Mills Code1 M1 2 M2 3 M3 Pakistan Average EuropeMiddle East Far East Stocks6.52.03.03.88.58.07.5 Safety Records 7.54.54.85.69.07.57.0 Ancillary Services 5.56.56.26.18.07.57.0 Laboratories6.37.55.56.49.07.57.0

18. Mills CodeM1M2M3Pakistan Average EuropeMiddl e East Far East Area and buildings 7.74.65.05.88.07.57.0 Lay out7.06.06.5 8.07.57.0 Flexibility6.07.37.06.88.58.0 Equipment5.96.94.95.99.08.07.5 Labor Productivity 4.03.04.53.88.56.56.0 Energy and Water Consumptions 6.35.74.85.69.07.56.0 Dyes & Chemicals 5.5 4.85.39.07.5 Contd …………

19. Mills CodeM1M2M3Pakistan Average EuropeMiddl e East Far East Maintenance7.06.04.85.99.08.07.5 Addition and reworks 5.04.74.54.78.57.57.0 Environment cares 6.01.0 2.79.06.56.0 Stocks6.52.03.03.88.58.07.5 Safety Records5.56.56.26.18.07.57.0 Ancillary services 5.56.56.26.18.07.57.0 Laboratories6.37.55.56.49.07.57.0 Total86.271.267.374.912110597.5

20. Pakistani Towel Sector Global Assessment WeaknessesNeutralStrengths Labor productivityLay outTop management Technology warping/sizing Machine productivityWeaving technology Technology installed dyeing Area and buildingTesting equipment Machines ageMaintenanceFinishing equipment Operator trainingCustomers satisfaction Storage conditionsMIS Middle ManagementProduction control Cares of environment Absenteeism/turnover

21. Benchmarking Project: Towel Results (Processing) Suggested Road map Labour:  Structure Supervisory and Operative Training  Too many intermediate levels: streamline the organization chart Dyes utilization and Consumptions:  Start using quality dyes and chemicals Environmental care:  Install to Effluent Treatment Plant (share ETP with others)  Customers will soon ask for certifications (OEKOTEX 100, ISO14000...)  Energy, water and steam usage should be reduced Machines  Full automatic machines should be preferred