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0 INTRODUCTION
Bangladesh is a developing country RMG play a vital role in our economy. Its contribution in
GDP 76%. After introducing this sector in our country unemployment problem solved at
some extent. Though the economy of our country is primarily agro based but without
industrialization it is doubtful, whether a country like Bangladesh can break out its cycle of
poverty and decrease the even loaded foreign loan.
2.0. OBJECTIVE OF THE STUDY
To enhance the knowledge about the value chain analysis by studying an end to end process. I
have chosen the garments manufacturing system end to end process for value chain analysis.
3.0.METHODOLOGY OF THE STUDY
Both primary and secondary data have been collected for the purpose of the study.
Primary Data:
Secondary data is the main source of information collection for this study
The secondary data are collected by following ways:
I.
II.
Web Sites
Different media like: Newspaper, news articles etc
Michael Porter has identified a set of interrelated generic activities to analyze the firms
competitive advantage. It is useful to model the firm as a chain of value-creating activities.
The value chain is useful to assess the areas of weakness and then strengthen those areas for
companys profitability and competitiveness. The model is useful in determining the ways in
which an organization can implement IT or add value to the products and services. The goal
of these activities is to create value that exceeds the cost of providing product or service, thus
generating a profit margin. The generic chain consists of five Primary activities and four
Support activities.
Value Chain Analysis for Basic T-Shirt
The primary activities will differ as the model of service changes, but the support activities
will not differ. An application of the Porters value chain model is as follows:
The above figure suggests that garments manufacturer performs a number of operations. The
primary activities at Basic T-Shirt are comprised of ordering, fulfillment, design and
manufacturing, and among these activities, ordering was the most regular, precisely defined,
and standardized around the world.
garments manufacturer has a flat and decentralized decision-making. The store managers at
garments manufacturer had the autonomy to select the inventories at each store rather than
depending on the headquarters to make the decision. The store managers decided items on
2
sale, and deal with the customers, property owners, and contractors. The store managers
communicated with the commercials and worked in close proximity. The commercials decide
on the clothes production and design and higher-level managers typically did not review their
decisions.
Manufacturin
g
Recommendation
15600
64000
Printing
Process loss: 4%
62640
Cutting
Sewing
Finishing
Process loss: 3%
50400
Process loss: 4%
180480
10800
Process loss: 3%
70713
Current Scenario
Activity
Ordering
Manual checking of
Problem(s)
Solution(s)
Lack of in-store
In-store computers to
inventories for
computers to check
check inventories
ordering
inventories and
sales. Also cannot
match the exact
inventory
Cannot look at
inventories in other
stores
Fulfilment
Commercials cannot
Lack of in-store
computers makes it
difficult to check
To make use of IT
Commercials decided
on the design
Commercials
teams make a
ease the
communication with
and communicate
it with factories
Manufacturing
Has vertically
Internally developed
Use of universal
integrated
compatible software
manufacturing
operations,
outside applications
which enables
constant
introduction
5
of new items
with short
lead times
Has internally
developed
simple
applications to
plan
production
Distribution
Centres
Distribution Centres
Use of vendor
use internally
compatible software
developed
applications to
vendors
control the
distribution centres
automation often in
collaboration with the
vendors of conveyor
equipment
Stores
No in-store networking
In-store networking
available
should be available
Problem(s)
Solution(s)
Internally developed
Use of vendor
inventories
Support
Activity
Administrati
Current Scenario
Uses standard
on and
Systems
commercial
applications by the IT
applications for
office
compatible software
productivity
(wordprocessing, emails)
IS department
responsible for
the internal
development of
applications
Procurement
Lack of computers in
In-store computers
Business
Communication is difficult
Support
Expansion,
Time consuming
Areas
Use of IT for
easy
International,
communication
Logistics,
Raw material,
Manufacturing Plants
Use of IT can
make centralized
operations
possible