Introduction:

This report is mainly focused on the Production and Operation of Ready Made
Garments (RMG) sector in Bangladesh.

As we know RMG sector is the highest export earning industry in Bangladesh and at
the same time it is one of the sectors which has created nearly 5 million job in the
country making it the second largest RMG sourcing country in the World. Currently
more than USD 29.5 Billion worth of RMG is being exported every year and which is
far greater than India (USD 16 Billion) and Pakistan (USD 11 Billion).

Behind this achievement there are few factors which helped Bangladesh to grow
over last couple of decades. Among them, developing know how of the workers,
technology transfer with the new machineries and expertise are remarkable.

To make this term paper, I have chosen countrys one of oldest and renowned RMG
Company named Youngone Corporation. I have tried to find out the production and
operation methods which are being practiced by them as per I have learned
throughout the course out line while studying in this semester.

Youngone Hi-Tech Sportswear Ind. Ltd. is one of the companies under Youngone
Corporation which was established
in the year in 1993 in Dhaka EPZ
which is also the first company that
established in this zone. The
company mainly produces outer
and winter wear for world renowned
brands like Nike, Adidas, Land End
etc. Currently nearly 8,000 workers
and more that 400 management
staffs are working in its production
facility.

Different world class Brands like Nike, The North Face, AIGLE, Puma etc
are being produced in this factory.

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Transformation Process:
Since, Hi-Tech Sportswear Ind. Ltd. is a product manufacturing company, its
Production and Operations Management (POM) act through Physical
Transformation as below-

Syst Primary Resources Primary Typical

em Inputs Transforma Desired
tion Output
Function
RMG Fabrics Cutting, Fabrication Typical
Factor and Embroidery and Desired
y accessori and Sewing assembly of Output
es Machine, fabrics
workers (physical)

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Operation Strategy:
The Operation Strategy of Youngone Hi-Tech Sportswear Factory is to manufacture
high end product with sophisticated styles using technologies and machineries. This
factory is equipped with modern automated machines and experienced workforce.

Competitive Dimensions:
This factory has been successfully operated for last 23 years since its establishment
on the basis of core competitive dimensions as follows

Price or Cost: The main secrete of the success of this factory is offered
production cost which is very competitive. This has been achieved through efficiency
of the production and proper management. Therefore Brands like Nike and other
always relies to place order in this factory for years.

Quality: Consistent quality assurance of garments is another point where this

factory has been very successful.

Delivery Speed: Youngone Hi-Tech Sportswear factory has the capacity of

producing its products within shortest possible time having all the production facilities
in single layout plan which made this factory efficient to deliver the finished product
very quickly.

Delivery Reliability: Being the top brands, Nike, and others have continuous
requirement of their jackets worldwide and they always depends on the on time
delivery of their clothing from Youngone throughout the year at their respective
destinations. Here Youngone also very much successful to keep their commitment
and became reliable to its customer, i.e buyers.

Coping with Changes: Previously simple type of winter wear or jackets

used to be produced in this factory. Like previously jackets used to be
made with Padding for insulation and now sophisticated jackets are being
made with down and thermal insulating system. Over the years this
company has adopted the changing demands of the customers which the
buyers orders.

Flexibility and New Product Introduction Speed: While inquiring about

this point, it is learned that this factory has a design and development
team which offers new design and patterns to the buyers and most of the

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cases buyers accepts their offer to sell those products with new design in
the market.

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Process Analysis:
In Youngone Hi-Tech Sportswear factory the Make to Order process is being offered
to the buyers. That means the actual manufacturing process activates after getting
actual order from buyers.

Process Flow Chart from Nike order to production and shipment is being mentioned
in the below chart.

Productivity:
Since the Productivity is the ratio of output to input, this factory measure it in
monetary units, FOB price. The FOB Price of the finished garments is devided by all
inputs like, raw mats, labor, machine depreciation ect.

Efficiency:
Efficiency in making garments in this factory is being measured by the capacity of
making one garments in least possible time. The regular efficiency of this factory has
been found 80% which is considered very high.

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Process Selection:
Youngone Hi-Tech Sportswear follows Assembly Line process in making garments.
Standard garments in high volume are being produced here.

Fabric-> CAD Pattern-> Cutting-> Ambroidery-> Printing-> Sewing (Assembling)->

Garments (Final Product)

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Facility Layout:
To ensure smooth workflow this factory has setup every required facilities starting
from MCD (Material Control Department), Fabric Cutting, Embroidery, Printing and
sewing lines in its respective production floors. By studying motion and time to
complete each sections job the layout has been designed accordingly. In the below
layout plan it has been shown elaborately

MCD
Cutting
Machine
Sewing
Line
Packing
Wear
Housing

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Product Layout:
It has been found that the raw materials move through preset progressive straight
line steps to produce a complete garment. In the below layout such layout has been
shown

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Capacity Planning of Youngone Hi-Tech Sportswear Ltd.:
Mr. Mushiur Rahman, General Manager, Production is the Capacity Planning
Manager under whom Mr. Hannan Sarkar, Manager, Works Study work to determine
the production capacity of this factory. According to them the monthly capacity of this
factory is 4,50000 pcs by the workforce capacity of 8,000 with 85% efficiency.

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Issues in Facility Location:
The Chairman of the company Mr. Kihak Sung has considered the below points to
establish his factory in Dhaka EPZ, Bangladesh

Proximity to Customer: Younogne Hi-Tech Sportswear Ind. Ltd. is a sponsored

company of Youngone Corporation, a South Korea based multinational company. It
was established in Dhaka EPZ considering the close contacts with the buyers since
most of the garments retailers have their sourcing from this particular area.

Business Climate: A favorable business climate with presence of similar sized

business houses have always been available in the area.

Total Costs: The lowest cost of setting up factory and low labor cost have played a
vital role in making the decision to establish in this part of the country.

Infrastructure: Since Dhaka is the capital city and all the communication facility like
road, rail, air and sea were available as well as the energy and telecommunication
were good, all these amenities attract the entrepreneur to setup this factory in this
area.

Quality of Labor: Bangladesh already started its journey in exporting RMG from
early 80 and by 1993 the skills and knowhow of the labors increases to the
satisfactory level which gave a good start to the company.

Suppliers: A high quality and competitive supplier base has been built up locally and
internationally. Like world renowned YKK zippers have their factory in Dhaka EPZ. All
these facilities help Youngone to continue business with lean production method.

Other Facilities: Youngone already had other manufacturing units in Chittagong

EPZ that encouraged it to setup its plant in Dhaka EPZ as well.

Free Trade Zone: Dhaka EPZ is under BEPZA (Bangladesh Export Processing Zone
Authority) which provides many different facilities than that of DTA Factories under
bonded area facilities. This particular zone also provides extra benefits to the
industries like 10 years TAX holiday, Duty Free vehicle import and tax free import of
raw materials. All these attract the owner to set this factory here.

Political Risk: In early 90 Bangladesh was a fresh democratic country and there
were harmony in the political field which made the ideal condition to setup business
here.

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Government Barriers: It was easy to get permission to setup factory in Dhaka
rather than to setup any other places as far as the legislative scenario is concern.
Youngone took that opportunity.

Environmental Regulations: Environmental Regulations on establishing factory

under Dhaka EPZA were helpful to establish factory in this area.

Host Community: Being a multinational company, Youngone Corporation found the

host community with the young educated mid-level management people have been
suitable to invest here.

Competitive Advantage: With the facility of GSP to USA and Europe with cheap
labor cost and educated workforce made Bangladesh competitive among the RMG
sourcing countries. All these amenities attracted Youngone Corporation to invest
here.

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Conclusion:
Youngone Hi-Tech Sportswear is a world class garments manufacturing
company. It maintains high standards in producing garments with sophisticated
machineries and technology. Having inspired from their overseas operation,
this factory have introduces many learning methods for the workers and
management staffs. The buyers rely on the competiveness and quality of
service of this factory. The Production Manager have the capacity to deliver
good quality product with timely delivery which makes the ultimate customers
rely on them.

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Recommendation:
The only lacking I could find that the management is not capable enough to
focus on the forecasting of the production. They need to be more educated on
this sector to enhance their performance and reduce opportunity cost.

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