5/4/18

60-hours Professional Training Session

Sustainable Textile
Compliance Management System
Session on Friday and Saturday A A A Control
6:00pm to 9:00pm Textile Training & Advising

Starting April 27, 2018

For Details: 01718421625

Asst. Professor,
Trainer Textile
Engineering
Department,
Daffodil
International Technical Team
BSc in Textile University Leader,
Engineering Bangladesh
Training (24B, BUTex)
Modules of fire, Textile Today Author:
electrical and Practitioner
building safety Compliance
for industries’ Handbook for
ECOCERT Textile-Garment
workers (DFID Bangladesh MSc in Textile
Funded) Industries
Representative, Clothing
Abrar A Apu
Content Advisor, Engineering
GREENGRADE, Certified Lead (Germany)
auditor @ ISO Worked for
UK
9001, ISO Zaber and
14001, OHSAS Zubair Fabrics
18001, SA8000, Ltd,
GOTS, OCS,
GAP
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AAA Control is a mastermind team. The team is blend of academicians and industrial experts who has
been devotedly working to impart knowledge, skills and competence to industry people by providing
professional training and advising. AAA Control is also creating job opportunities of unemployed
graduates through offering certification courses.
1. Organic Textile Processing (based on GOTS and OCS)
2. Total Quality Management (TQM)
3. Quality Management System (based on ISO 9001:2015)
4. Social Compliance Management System
5. Environmental Management System (based on ISO 14001:2015)
6. Auditing Guidance for Management Systems (based on ISO 19011:2011)
7. Chemical Management System/ZDHC
8. Fire Safety and First Aid
9. Apparel Merchandising Management (AAM)
10. Fabric Consumption, Costing and Offering Price of Apparel Merchandises
11. Industrial Production Engineering
12. Denim Washing and Finishing Techniques
13. Denim Bottoms Merchandising Management
14. Apparel Supply Chain Management
15. Bangladesh Labour Act AAA Control (training & advising) 3

SCM
Backward Forward
Linkage INPUTS PROCESSES OUTPUTS Linkage
GOTS
SCMS/H&S/BLA Manpower Product Planning Products/Services Oeko Tex

QMS/CMS Materials Process Planning By-Products

EnMS
Energy Process Control Pollutions Accidents
• Water
Boiler Act Machine Maintenance • Land Failure
• Air
Mother • Sound
Health
Efficiency/Productivity

EMS/B+EPA Environment Hazards

Management

EMS/B+EPA
Risk

• Policy
• Procedures/SOP
• Documentation
• Monitoring
• Communication
Traceability Factory Rules CSR Green Factory Sustainability
• Training
• Listing out non-
conformance Verifications- ISO 19011

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Head of Sustainability

Industrial
Verifications
Related Case studies

Creating: Policies, Procedures,

Documents, Communication, Training
Knowing PDCA requirements for standard/
common tools, techniques, methods

Finding standard/common tools, techniques, methods

to fulfill those requirements
Understanding Requirements of: QMS, EMS, EnMS, SCMS, ILO
ZDHC-CMS, CSR, H&S, CoC, BEPI, GP, CP, BSCI, SEDX, WRAP, GOTS,
BLA, ECA, BER, Boiler Act, Electricity Rules, Building Construction Act

Warming up

Management
Compliance
Textile
Sustainable

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Lets try to understand the message from the picture

AAA Control 7

Lets Understand Sustainability in Education

From Oxford Dictionary:

• Sustain(verb):Cause to continue for an extended period or without interruption.
Profitability
• Sustainable(adj): Able to be maintained at a certain rate or level
• Sustainability (Noun):The ability to be maintained at a certain rate or level
Environmental Conservation
From U.S. Department of Commerce:
“Sustainable manufacturing is defined as the creation of manufactured products that use processes that
are non-polluting, conserve energy and natural resources, and are economically sound and
safe for employees, communities, and consumers.”
Social Responsibility
Sustainable Education or Education for Sustainability, may defines as
A system to equips educators, learners and learning environment with the new knowledge and ways of
thinking in order to able them (students) to create products and services without polluting environment,
conserve energy and resources (Environmental Conservation) and economically sound (Profitability)
and safe for employees (Social Responsibility).

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Why does Textile Sustainability concerned?

Criteria for permission CATEGORY
NOC from local authority Green
Bangladesh Environmental Act
(amendment)-2010, Section 12
Examples
Television/radio, assembling, book-
binding, tea packing, sports goods,

laundry without washing

Process diagram, layout plan Orange-A Dairy, Poultry, Saw Mill, Printing press,
with ETP, effluent discharge restaurant, Cinema hall, Dry Cleaning
arrangement
+EMP, Emergency plan, Orange-B Glass, Edible Oil, Jute Mill, Coal tar, Hotel,
Multi-stored apartment, brick field, Ice
cream,
+EIA, Red Textile, Tannery, Fertilizer, Power, Dyes-
Chemicals, Cement, Refinery, Paper &
Pulp, Sugar
AAA Control 9

Environmental Issues (Global)

AAA Control 10

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Results of Environmental Changes

✓Rise in temperatures
✓Disappearance of certain species of birds
✓Rise in allergies and other health problems.
✓Contamination of lakes, ponds etc.

ü Rising sea level

ü Less snow and ice
ü Damage corals
ü More droughts and wildfires
ü Stronger storms

AAA Control 11

Origin of Sustainability:
1972: The Limits to Growth
provided beginning concept of
sustainability when scientists used
Simulation of exponential
economic and population growth
with finite resources supplies.

AAA Control 12

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Evolution of Sustainability Concept

• Bruntland Commission’s commitment to popularize the concept

1987 “Sustainable Development”

• UN Conference on Sustainable Development accelerated

1992 Sustainability Development

• Millennium Summit’s one of the MDG was Environmental

2000 Sustainability

• UN Environmental Program defined 3-pillars of green industry-

2008 low carbon growth, resource efficiency and social inclusivity

Major facts on Textile-Apparel sector

Textile is not any more belongs to fundamental needs of human

The most complex supply chain among all the industrial sectors

Use highly ENVIRONMENT degrading processes(i.e, Climate Change)

Consume higher amount of natural resources

Highly labor intensive, thus labor exploitation rate is very high

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Green Industry
§ Reduce Economic
§ Reuse Growth
§ Recycle (Profit) § Non-discrimination
§ Recovery § Equal Remuneration
§ Redesign

Green
Environmental Industry Social
Protection Inclusivity
(Planet) (People)
Bearable
§ Use of smart technologies
§ Resource saving
§ Decoupling: resource and pollution
Green Industry: balancing economic + social + environmental sustainability

Internal Forces External Forces

§ Resource Conservation Driving § Customer Demand

§ Achieve efficiency
§ Ensure profitability
§ Care of H&S of workers
§ Competitive Advantage
§ Complying local regulations
Forces of § Complying Global standards
Sustainability § Uphold market Image
§ Enjoy Market Opportunities

16

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AAA Control 17

Some Examples

Sustainability of
§ Organic fibers
§ Inputs (Dyes, Chemicals,
accessories)
§ Processes
§ Social requirements
§ Environmental requirements
Sustainability of
§ Sustainable fibers
§ Inputs (Dyes, Chemicals)
§ Processes
§ Social requirements
§ Environmental requirements
AAA Control
Sustainability of
§ Social development
§ Labour requirements
§ Environmental requirements
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• Human Rights
• Labour Practices

AAA Control 19

Our Past

Rana Plaza in 2013 Tazrin Fashion in 2012

What Do you thank about present progress textile-apparel
sector in regards to Sustainability Concept?

Our Present

AAA Control 20

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1 Columbia Washing Plant Platinum

LEED Certified Textile-Apparel Plant
2 Genesis Fashions Platinum
§ There are more than 67 textile- 3 Remi Holdings Ltd Platinum
clothing factories LEED certified 4 Tarasima Apparels L Platinum
§ 7 out of 10 highest factories are in 5 SQ Birichina Limited Platinum
Bangladesh. 6 SQ ColBlanc Limited Platinum
§ More than 250 are in planning to 7 SQ Celsius 2 Platinum
implementation stage. 8 Envoy Textiles Ltd Platinum
§ In 2020, more than 350 textile- 9 Plummy Fashions Ltd Platinum
clothing will be LEED Certified 10 Classic Fashion Concept Platinum
§ US Green Building Council 11 Next Accessories Ltd Platinum
(USGBC) statistics show that there 12 Genesis Washing Ltd Platinum
are 108 green buildings in 13 Vintage Denim Studio Platinum
Bangladesh. 14 Soorty Textiles BD Limited Gold
15 Babylon Textile Gold
AAA Control 16 Dipta Apparels Limited Gold 21

GOTS: CERTFIFICATION SUMMERY

Potugal, 180 Korea, 69
Banglades
Y EA R-BY-YEAR GROWTH OF GOTS Pakistan, 194 h, 534
C ERTIFIC ATION
China, 292
Italy, 307
6000
5024 Germany,
5000 480
3814 4642
4000 Turkey, India, 1658
3085 445
3663
3000
3016
2000
Bangladesh China India
1000 Turkey Germany Italy
878 Pakistan Potugal Korea
0
2006 2008 2010 2012 2014 2016 2018

www.aaa-control.com
GOTS Certification in 2017

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Consumer Sustainability Education & Training

Advisory Services Reporting For Resource-efficiency
Voluntary
Soft

Eco-Labelling
Agreement Environmental Monitoring
Determining Factors

Susidies Green Public Procurement Information

Centre
Environmental Certification
Taxes Trading Technology Transfer
Environmental Fees and User Research and
Liability Charges Development
Hard

Norms and
Standard Finance Mechanisms

Reward/Penalise Motivate Support

Government
AAA Control Strategy 23

Major Sustainable Initiatives by Countries

Combodia Thailand
Green Growth Road Map, 2010
Alternative Development Plan-2008
India
National Environmental Policy
National Mission on Enhance Energy Efficiency
National Solar Mission

Kazakhstan
Green Development Strategy-2030 Bangladesh needs a 'green' growth strategy
Maldives The Dailystar, Nov 9, 2017
Carbon Neutrality Polcy-2009
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PRODUCERS’ VIEW as BUYERS’ VIEW as

Textile-Apparel
Sustainability

STAKEHOLDERS’ VIEW as

Must to do long-term business

AAA Control 25

As an Engineer, What is your point of view

Generally, My duty and responsibility to

§ Maximize production only to ensure profits
This concept was valid till 1980

We are living in 21st century

AAA Control 26

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Innovation Elements
Profit through
Remanufacture Sustainable Manufacturing(6R) environmental protection,
Stakeholder Value, $

and ensure social value

Redesign
Recover Profit through applying
Green Manufacturing (3R) 3R
Recycle
Reuse Lean Manufacturing Profit through waste
minimization
Reduce Traditional Manufacturing
Profit maximization

1980 1990 2000 2010 2020 2030 2040 2050

Time
AAA Control 27

Elements of Production and Environment

Air Contamination
Air Water Water Contamination
Materials Land Contamination
Products + By-products
Methodss Machinery
Noise
Heat Generation
Manpower Solid Waster
Energy
Land Health Hazards

Elements of Production for Engineers

AAA Control 28

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Sustainable Development Approach

Technical Consideration
✓Use of Cleaner Technologies
✓Elimination/Minimization of emissions at source
✓Waste Prevention & Minimization
✓Integrated Pollution Control (IPC)
✓Voluntary, Co-op, Pro-active Approach
✓Environmental Management System/ISO 14001
✓BATNEEC

AAA Control 29

Justice Approach Resilience Approach

(deliver quality) (among 3P)

Dignity Approach Effective &

(prosperity & well being) Sufficiency Approach

Healthy Planet Approach Generations Approach

(deliver quality)

Inclusion Approach Good Governance &

(participatory decision making ) Accountability Approach
Sustainability Approach

Mangement Consideration

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Risk-based Thinking

In Addition to this

§ Production Polices
§ Processes design
§ Production Procedure
§ Standard Operating Procedures

www.aaa-control.com 31

Root of Sustainability
We, the every
citizen
HR having depth
Using sustainable knowledge on Who are those
ways 5Ms:Material, Sustainability HR?
Machines, Methods,
Mother Environment Who can ensure
Though
sustainable 4M?
Sustainable Textile Environment where
Manufacturing How to culture, religion, and
Methods develop SMM? education rules
Sustainable
Textile Products How to get Where do they
(STP) STP? Sustainability bring up?
concept have to be
Purpose of diffused here
Sustainability
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Textile inputs and outputs Criteria matched with

Raw Materials as Inputs Traceable and certified
Accessories Oeko-tex Certifed
Hang tag FCS/PEFC Certified
Poly Recycled claim by independent parties.
Dyes/Chemicals GOTS/Bluesign/Eco passport
Use of water/energy Must be measured/control
Solid waste Dumping with proper documentation
Liquid/Gaseous Waste Parameters must be confirmed before discharge

AAA Control 34

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Training Agenda

§ Introduction to Textile Industry and related terms

§ Process sequences of Yarn and Fabric production and explanation of related terms
§ Process sequences in Fabric Processing and explanation of related terms
§ Process sequences in Apparel Manufacturing and explanation of related terms
§ Organogram of Apparel Industry and explanation

Process Flow Chart of Textile Manufacturing

Fiber • Natural, Man made, Regenerated
Production

Spinning • Ring spinning, Rotor Spinning,

Fabric
• Weaving, Knitting, Braiding, Non-woven
Manufacturing

Wet
• Dyeing, Printing, Finishing
Processing

Apparel • Woven Knit

Manufacturing
How does it related to STCM?

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Blow-room • Bale Opening, Cleaning, Mixing or Blending, Lap Forming

Process Flow Chart of Spinning

Carding • Lap to Sliver Making

Drawing • Process of attenuating Sliver

• straightening and parallel of

Combing
fibers & removing shorten fibers
• Further attenuation
Roving of sliver

Ring Spinning
How does it related to STCM?

Process Flow Chart of Fabric Manufacturing

Yarn Preparation

Weaving Knitting

Weft Knitting Warp Knitting

Warp Preparation Weft Preparation

Winding Winding & Winding &

Winding
Waxing Waxing
Warping

Sizing Winding Warping

Moistening/
Drawing-in
Emulsifying Knitting
Or, Tying-in

Weaving

Quality
Inspection
How does it related to STCM?

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Process Flow Chart of Wet Processing/Dyeing

Desizing &
Grey Fabric Stitching Singeing
Desizing

Scouring &
Mercerizing Drying Washsing
Bleaching

After
Dyeing Finishing Inspection
Treatment

How does it related to STCM?

Process Flow Chart of Apparel Manufacturing

Design/ Pattern Sample Production

Sketch Design Making Pattern

Marker
Cutting Spreading Grading
Making

Sorting/Bun Sewing/Ass
Finishing Inspection
dling embling

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Lets Understand Organogram (Textile Industry)

Departments in garment manufacturing unit

Finishing &
Merchandising
QA department Packaging
department department

Engineering Embellishment Maintenance

Department department department

Sampling Sewing Finance & Accounts

department department department

Cutting HR/Admin
Store department
department department
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Textile System Supporting Industry

Chemical Industry

Textile machine industry

Apparel Machine industry

Accessories Industry

Transportation and Logistic

Washing, embroidery, print industry

Fig: Textile Complex

www.aaa-control.com

A supply chain is a network of partners who collectively convert a basic commodity

(upstream) into a finished product (downstream) that is valued by end-customers, and who
manage returns at each stage.

Suppliers Direct Manufact Final

Distributor
Suppliers Suppliers urer Consumer

Yarn Fabric Garments

Wet
Manufact Manufact Manufact
Processing
uring uring uring

A Simple Supply Chain Model

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Management

Planning Organizing Leading Controlling

o Vision o Division of Labor ✓ Motivation ✓ Gathering
o Mission o Delegation of Communication information
o Objectives authority ✓Performance appraisal ✓Measuring
o Goals o Departmentalization ✓Discipline performance
o Span of control ✓Conflict resolution ✓Budget for expenses
o Coordination ✓Studying inspection
Staffing
record
✓Have strength of
✓Recruiting
conviction in the area of
✓Selecting
taking corrective
✓Hiring
actions.
✓Training
✓Retraining
AA Control
✓Placing

who are responsible for making organization-wide decisions and establishing

Top plans and goals that affect the entire organization
Managers

who manage the work of first-line managers

Middle Managers

who manage the work of non-managerial employees

First-Line Managers

Non-managerial Employees

Classifying Managers www.aaa-control.com

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Time spent in carrying out managerial functions

Top
Managers

Middle Managers

First-Line Managers

Management Levels versus Skills

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Professional Skills for Managers

✓Intellectual Skills: logical thinking, problem solving, analytical.
✓Technical Skills: motor performance at various tasks
✓Ethical Skills: define right from wrong
✓Interactive Skills: communicate intelligently and create an atmosphere that facilitates
communication;
✓Emotional Skills: ability to identify and handle ones feelings
✓Dosing Skills
✓Administrative Skills
✓Decision Making Skills
✓Communication Skills:
✓Leadership Skills

Micro Environment
Basic elements of the environment:
o mission, goals, objectives and strategies
o organization and its management
o resources of the organization
o organizational culture
Market Environment
Basic elements of the environment:
o consumers, their needs, purchasing power and behaviour Micro-
o suppliers of materials, capital and labour Organizational
o intermediaries e.g. wholesalers and retailers, commercial Level
agents and brokers, banks and so on
o competitors e.g. new entrants, existing competitors,
availability of substitute products
Macro Environment
This environment is made up of threats, opportunities
limitations and resources.
• technological environment • ecological/physical environment
• economic environment • political-governmental environment
• socio-cultural environment • the international environment

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25 ESSENTIAL LEAN MANAGEMENT TOOLS

•5S •KPIs (Key Performance Indicators)

•Kaizen (Continuous Improvement) •Muda (Waste)
•Overall Equipment Effectiveness (OEE) •PDCA (Plan, Do, Check, Act)
•Andon •Poka-Yoke (Error Proofing)
•Bottleneck Analysis •Root Cause Analysis
•Continuous Flow •Single-Minute Exchange of Dies (SMED)
•Gemba (The Real Place) •Six Big Losses
•Heijunka (Level Scheduling) •SMART Goals
•Hoshin Kanri (Policy Deployment) •Standardized Work
•Jidoka (Autonomation) •Takt Time
•Just-In-Time (JIT) •Total Productive Maintenance (TPM)
•Kanban (Pull System) •Value Stream Mapping
•Visual Factory

5 S Methodology (workplace organization techniques)

§ Keep necessary items in
correct place to § Set Standards for a
consistently organized
o allow easy retrieval and
o use workplace

SORT SET in ORDER SHINE STANDARDISE SUSTAIN

§ Keep necessary items § Maintain and review
§ Keep all aspects of
§ Dispose unnecessary items standards
workplace clean

Quality Cost Delivery Safety Motivation

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Kai means Change

Kaizen Zen means Good
a Japanese word means, continuous Improvement .

Kaizen is small incremental changes made for improving productivity and minimizing waste

Activities Every Every

day one

Value added (VA) Non Value Added (NVA)

Every
where Masaaki Imai
NNVA (type 1)

How to Implement Kaizen?

NVA (type 2) • Individually
• In a small team approach
• In a boardroom

Overall Equipment Effectiveness (OEE)

§ OEE (Overall Equipment Effectiveness) is the gold standard for measuring productivity (পিরমাপ
উ?পাদনশীলতা) in manufacturing (উ?পাদন)
§ it identifies the percentage of manufacturing time that is truly productive(এC উ?পাদনশীলতার
উৎপাদন সময়সীমার শতকরা িহসােব িচিGত কের)
§ An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no
Stop Time (100% এর একC OEE )Hার মােন আপিন যতটা সKব যতটা সKব Lত অংশ Nতির করেত
পারেবন, )কান Oপ টাইম ছাড়াই।)
§ A World Class factory generally maintain OEE>85% (একC িবT )Uিণর কারখানা সাধারণত OEE
র"ণােব"ণ কের >85%)
Ø Zero breakdowns (িজেরা )*কডাউন
The Goals (ল"#) of OEE: ØZero abnormalities (অ0াভািবকতা)
Ø Zero defects (িদফ#া6)
Ø Zero accidents (দুঘ9ট না)
Ø Awareness of the losses ("িতর সেচতনতা)

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OEE Factors

The overall performance of a single একC সরYাম বা এমনিক একC

piece of equipment or even an entire সZূণ9 ফ#া6ির সামি\ক
factory, OEE is dependent on the three পারফরম#া], OEE িতনC factors
factors. They are: এর উপর িনভ9র | )স^েলা হলঃ
Availability
Availability
Performance Rate
Performance Rate Quality Rate
Quality Rate

Mathematical representation of OEE

OEE= Availability x Performance Rate x Quality Rate

Total time in 1 shift of a factory 8 hours/ 480 min

Lets have an example of losses

Planned
Available time 420 min downtime
(60 min)
§ Break
downtime § Planned
Running time 340 min (80 min) maintenance
§ Training
Performance § Breakdowns,
Productive time 270 min § Repairs
loss (70-min) § Adjustment
§ Start up
Quality § Long cycle time
Effective time 250 min loss § Minor stoppage
(20min) § Reduced yield

§ Scrap What is Total Losses?

§ Rework
§ Rejects

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420 min - 80 min

Available time - Planned Down Time = --------------------- = 81%
Availability = ----------------------------------------- 420 min
Available time
340 min - 70 min
= ---------------------
Running time- Performance loss 340 min
Performance rate = ---------------------------------------------------- × 100 %
= 79.4%
Running or operating time
270 min - 20 min
Productive time- quantity loss time = --------------------- = 92.6%
270 min
Quality = ------------------------------------------------------
Productive time

Overall Equipment Effectiveness = (81/100 x 79.4/100 x 92.6/100) x 100 %

= 59.6%

Andon System
is a manufacturing term referring to
a system to notify management,
maintenance, and other workers of a
quality or process problem. The
centerpiece is a device incorporating
signal lights to indicate which
workstation has the problem.

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Bottleneck Analysis
The lowest output point in the production line is called bottleneck. That is bottleneck area,
where supply gathered and production goes under capacity.

Poka-Yoke
Poka-yoke [poka joke] is a Japanese term that means
"mistake-proofing
Mistake Proofing is the active awareness, detection, and
prevention of mistake which adverse affect:
§ customers and consumers (defects)
§ employee (injuries)

Awareness: Having the forethought that a mistake can be made,

communicating, the potential, and planning the design of the
product or process to detect or prevent it.

Detection: Allowing the mistake to happen but providing some means of

detecting it and alerting someone so that we fix it before sending it to our
customer.

Prevention: Not allowing the possibility for the mistake to occur in the
first place.

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ISO 50001 Energy

Management System
ISO 9001 Quality
Management System

Global Social
The image Compliance
part with Program
relationshi Legal Requirements:
Textile Industry BLA, BFR, BEPA, Boiler
Act, Electricity Rules,
Fire Prevention and FF
Law, Building
Environmental Construction Act,
Performance Bangladesh Energy
Initiative (BEPI) Regulatory Commission.

Introduction

§ Compliance (What, Why, Where, Who, when, how)

§ What does company must have for
implementation of compliance?
§ Compliance input elements and their output
§ Pillars of compliance system
§ How to introduce compliance system
§ Case Study
§ Management System and its types
§ KPI
§ PDCA
§ Understanding Policy and Procedure
§ Documents and Records
§ Audit and details
The participants will learn about:
• Concepts behind compliance;
• Primary responsibilities of a
company;
• Main pillars of compliance;
• How to introduce and develop
compliance programme;
• How a company can benefit from
a compliance programme.

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Introduction

Compliance is either a state of being in accordance with established guidelines, specifications or

legislation or the process of becoming so.
§ Guidelines (indication of a future course of actions)
§ Specifications
§ Legislation/Law
§ Rules
§ Obligations (MUST do)
§ Codes of Conduct/soft law

The first code of conduct was developed and adopted in the garment sector by Livi Strauss & Co in
1991 titled as “Business Partner Terms of Engagement and Guidelines for Country Selection

Consider Compliance as a Process:

Inputs Processes Outputs

Soft skills: Corporate structure: • Better reputation of the company

• Training • Top management • Better & safe working environment
• Motivation • Compliance officers
• Motivated workforce
• Communication • Workers
• Monitoring • Machinery • Consistent quality products
• Management • Tools • Better buyers/retailers retention
• Working methods
Change mechanisms: • Fulfil legal requirements
Resources: • Sustainable development of the
• Code of conduct
• Materials • Relevant laws & company
• Manpower Regulations
• Better corporate governance
• Methods • Buyer’s requirements

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Pillars of Compliance System Steps in introducing compliance

programme
1. Appoints
compliance
Effective Compliance personnel
2. Develops a
6. Establishes guide and
Corrective Actions & document manual for
and CoC of buyers

Preventive Actions
Internal Monitoring
Laws & Regulation

management compliance
Commitment &

Documentation
Accountability

system management
The company
willingness
for
compliance
5. Takes
3. Training on
preventive &
corrective compliance
action based management
Fig: Pillars of Compliance System
on findings
4. Establishes
monitoring
system

Company’s commitments to achieve Compliance:

Commitments to
§ a clear Codes of Conduct (CoC), both in English and the native language
§ establish procedures to detect and prevent possible non-compliance issues
§ ensure sufficient knowledge of the practice and procedures of top-management on Compliance
§ appoint a responsible personnel for implementing compliance practices
§ allocate adequate resources to achieve compliance practice
§ take practical steps and methods to communicate necessary requirements with employees
§ promote and enforce programmes through appropriate incentives and disciplinary measures;
§ periodically monitor, and conduct audits to verify compliance codes
§ establish proper implementation of the required legal obligations and the codes on compliance
practices.

Lets Find out Benefits for:

§ The company
§ The buyers
§ Workers

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CASE STUDY: EFFECTIVE COMPLIANCE

McKinsey & Company predicted that Bangladeshi clothing sector would keep consistent growth and its exports would reach more than
US$ 43 billion by 2020, significantly higher than the country’s 2012 export earning totalling US$ 19.09 billion. The clothing sector feared
that the compliance in labour standards is one of the greatest challenges for Bangladesh to remain on the path of growth. Labour unrest,
labour killing in violence, fire and industrial building collapse, poor wage structures, unethical treating of labourers in the industry
premises have compelled international non-governmental organizations (NGOs) to keep Bangladesh under their close scrutiny (World
Bank notes). Many factories do not even have basic safety features such as fire escapes (Worker Rights Consortium).

The clothing sector is labour intensive. Globally, compliance in terms of social security also comes as a major hurdle in a somewhat
densely populated clothing industry for it has to work with highly inflammable materials like cotton and synthetics. Most national and
international experts felt that the clothing sector of Bangladesh had made progress in the last few years but the same cannot be said
about its standards of social compliance. This sector has been facing compliance challenges due to multi-fold reasons. Nearly, 65-70% of
the clothing factories now operate in rented buildings. Most of them are located in the residential areas and not meant for housing
garment industries. No specialized industrial zone with distinctive infrastructure has yet been set up in Bangladesh for the sector as are
available in the competitor countries i.e. India, Sri Lanka, China and Pakistan. There are several internal and external factors that have a
direct influence in the failure to go with the compliances in industries. Internal factor can be included as non-existence of the compliance
department in the factory, which the owners usually consider to be a department meant for wasting money unnecessarily. The company
may not have appropriate experts with sound knowledge on the compliance issue, and the dearth of moral and ethical sense among mid-
level managers who directly control workers also exacerbating the situation. External factors are -non-availability of relevant organisations
that may instil awareness and impart enforcement programs through organizations (say, BKMEA, BGMEA, BTMA, GOB etc). Besides, no
training or research institute, government organisation, and common platform to share experiences and for recommendations aiming at
better fostering the issue is at sight yet.

KPIs for Worker’s rights

Many compliance practices KPI Area Key Indicators Benchmarks
establish and implement Employment Freely Chosen 100%
metrics or KPI (Key
Performance Indicators) to Wages Minimum wages determined
measure by law
progress/improvement in Children and Young workers No child labour. All young
compliance practices. KPIs for light works only
are developed internally as Workers’
Freedom of Association No hindrance when operate
benchmarking exercise Rights
(standard performance under law
level) to compare against Regular Employment 100% fulltime workers
targeted goals of social Working Hours 8 hours/days for all workers
practices. It helps identify
Non-Discrimination No discrimination
and eliminate possible
non-compliance. Discipline and Grievance 10 grievance
solutions/month

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Method’s elements Compliance elements Activities relevant to element

PLAN (establish the objectives 2. Written policies and -Know codes, standards, buyers
and processes necessary to procedures on compliance requirements;
deliver results in accordance -Management supports;
PDCA tool for Compliance

with company’s compliance -Undertake cultural change;

policy)
DO (implement the processes)
CHECK (monitor and measure
processes against provided
policy, objectives, legal and other
requirements, and report the
results)
ACT (take actions to continually
improve compliance
performance)
- Ensure necessary resources.
3. Training and education -Encourage teamwork.
4. Lines of communication -Awareness activities and
roundtable meetings.
6.Internal compliance -Assessment through active and
monitoring passive monitoring.
1. Top management who exercise -Review policies and procedures;
effective oversight -Audit results;
5.Standards enforced through soft -Response to non-compliance;
disciplinary guidelines -Response to corrective and preventive
7. Response to detected non- action;
compliance

Documentation Required for any compliance system

• Policy
Should only relate to the set of basic principles, and associated guidelines, which directs actions of
the factory
• Procedures
Should cover the sequence of activities or course of action that must be followed in the
same order to correctly perform a task
• Documentation
List of necessary record/documents are required t o comply wit h all requirements
pertaining to the topic
• Monitoring
How the implementation of policies and procedures are monitored.
• Communication and Training
How these policies & procedures are communicated to the factory
and what the relevant trainings are.
• Common NCs
Common Non-Compliances

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Understanding: Policy and Procedures

Quality Policy:
Top management shall establish, implement and maintain a quality policy
that:

§ is appropriate to the purpose and context of the organization and
supports its strategic direction; In the same way, Write
§ provides a framework for setting quality objectives;
 Policy on:
§ includes a commitment to satisfy applicable requirements;
 § Environment
§ includes a commitment to continual improvement of the quality § Health and Safety
management system.

The quality policy shall:


§ be available and be maintained as documented information;

§ be communicated, understood and applied within the organization

Review of
noncompliance
Steps of corrective actions against

Determination of
Deciding whether the action root causes(s)
taken has brought about
the needed results. If yes,
proceed and if no, go back Evaluation of the need
for actions to ensure
Non-compliance

that noncompliance
does not recur
Review effectiveness of
action taken
A decision to take
action or not
Recording results of
action taken Determine action
needed

Implementation of
required action Agreement on
proposed action

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Understanding: DOCUMENTS AND RECORDS

Documents and Records keeping is an essential part of the compliance management. As a matter of
fact, it is considered the backbone of the management.
Management of documents and records is relevant in several areas of the management such as
§ traceability
§ compliance
§ Accountability
§ service improvement
§ integrity and
§ availability of information
Main objectives of company’s retention of documentation (ISO/TC 176/SC 2/N 525R2) are:
§ Communication of information;
§ Evidence of conformity;
§ Knowledge sharing

ISO 216: DOCUMENTS AND RECORDS

Papers are available in different sizes in market for documentation and record keeping. The sizes that
are generally found in the market are (in inches) 81/2x 11, 11 x 17, 17 x 22, 22 x 34, and 34 x 44. The
ISO 216 has created a standard paper size system identifying a number of formats. The most common
formats and they use are as follows:
A0, A1: Technical drawings, poster;
A1, A2: Flip charts;
A2, A3: drawings, diagrams, large tables;
A4: Letters, magazines, forms, catalogues, laser printer, and copying machine output;
A5: Note pads;
A6: Postcards;
B5, A5, B6, A6: Books;
B4, A3: Newspapers, supported by most copying machines in addition to A4.

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Concept relating to DOCUMENTS AND RECORDS

Information Documents & Records

meaningful data
Record
documents stating results Documented procedure
achieved or providing evidence
of activities performed
Specification Compliance Manual Compliance Plan
document stating document specifying document specifying which
requirements compliance management procedures and associated
system of a company resources shall be applied.

Concept relating to documents and records (ISO 9000:2005)

Understanding: Training and Communication

Communication plays an essential role in enabling company to reach its goals and training helps to fill the gap in the
workers, among the works, between workgroup and company
Involvement

Training is always considered the appropriate

Commitment

means to communicate and updat e relevant staff

Support
Understanding

members and stakeholders. Commitment from

Degree of Change

Awareness Training

the company’s staffs does not come directly

through training and motivation, but need extra
understanding and support.

Degree of Involvement

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