Cost Reduction Techniques in RMG Industry
Cost-Saving Ideas in Apparel Manufacturing Industry:
In the readymade apparel business, cost control or cost saving of apparel production plays an important role in the total profit percentage of an apparel export order. This article has shown a lot of techniques or tips for cost control in apparel production.
22 Cost Reduction Techniques in Clothing Manufacturing Industry:
In the apparel manufacturing industry, cost control can be done through the below ways:
1. Proper maintenances of machinery and equipment should be done systematically and continuously with proper scheduling.
2. Effective and efficient production planning will reduce the unnecessary stoppages of machines and the idleness of employees. It increases machine efficiency.
3. Providing periodical training to the employees at all levels about various latest technologies, new and innovative methods of production and control, etc. will improve the effectiveness and efficiency of the work.
4. Unnecessary overtime should be reduced.
5. Employing skilled and experienced laborers will increase apparel production, reduces defective products, etc.
6. Proper handling of various materials, equipment’s and machines should be carried out.
7. Proper allocation of work to various resources like man, machine, money, etc. should be done.
8. Reduce the unnecessary movement of materials by employing proper layout and process sequence in the clothing manufacturing process.
9. Implementation of an integrated production system will reduce different wastages and costs.
10. Effective and efficient supply chain management should be done by using ERP (Enterprise Resource Planning) system.
11. Development and implementation of innovative systems or methods in the various activities in the clothing manufacturing process.
12. Efficient and proper utilization of various resources such as water, steam, power, etc.
13. Establishing standards and specifications for various materials and methods.
14. Getting certifications like ISO 9000, SA 8000, OHSAS, ISO 14000, WRAP, Oeko-tex, etc.
15. Implementation of various total quality management concepts and tools like PDCA, Kaizen, 5’S, Benchmarking, BPR, Quality circle, etc.
16. Using modern sewing machines and equipment for manufacturing will give good quality, more production, fewer wastages, and also they require less manpower.
17. Optimization of the material requirement by using quantitative techniques.
18. Effective monitoring and control system for the use of miscellaneous resources like power, telephone, stationaries, etc.
19. Outsourcing of various activities that need special attention or in which the company is not having much expertise.
20. Providing proper ergonomics and essentials of working circumstances in the company by keeping proper, clean, and neat working conditions.
21. The establishment of a systematic communication system that will provide proper information to the right person at the right time will reduce the wastage, stoppages of machines, etc.
22. Effective inventory control in stores and purchase will reduce the ordering cost, carrying cost of different incoming materials.