Premium Essay

Rmg Sector

In: Business and Management

Submitted By kjbithy
Words 3512
Pages 15
A SWOT Analysis on RMG Sector in Bangladesh

RMG is the leading industry in Bangladesh. It is basically a labor-intensive industry and it needs limited financial investment and relatively simple technology compared to other high technical industries. The success story of Garment Industry in Bangladesh is the story as to how the readymade garments starting in the late seventies as an insignificant non-traditional item of export. In 1998-99 this sector has earned 4019.98 million US$ through exporting which is 75.67% of the total export.

The tremendous success of Readymade Garment (RMG) exports from Bangladesh over last two decades has surpassed the most optimistic expectations. At present Bangladesh is the 6th largest exporter to USA and in 1997 Bangladesh becomes 18th largest exporter in the world. Now Bangladesh ranks first export of T-shirts to Europe (BGMEA, 1997-98).

The overall impact of the readymade garment export industry is certainly one of the most significant social end economic developments in contemporary Bangladesh. The remarkable achievement of RMG sector is now exposed to each and every country. Despite these impressive achievements and the probable challenges in the near future, if properly managed, the prospects for further expansion and growth for this sector remain bright. There are some major threats still exits in this sector but Bangladesh has the ability to overcome these threats.

Readymade Garment (RMG) industry holds a key position in the economy of Bangladesh in terms of foreign exchange earning, employment generation and poverty alleviation. Right now RMG sector is the highest foreign currency earner in Bangladesh. Apart from contributing to huge foreign exchange earnings, RMG industry has become the largest source of employment generation. Around 2 million people are presently involved of whom 90% are distressed women in the...

Similar Documents

Premium Essay

Rmg Sector

...and how supply chains are integrated and coordinated networks that deliver business processes to procure raw materials, transform them into final products or services and deliver the product/service to the customer. You will also learn how Six Sigma processes can be used to improve each step of the supply chain and identify and eliminate problems. This free online course will be of great interest to professionals in the areas of supply chain management, logistics, manufacturing and Six Sigma and quality management, and all learners who would like to learn more about the application of Six Sigma processes in supply chain management. Country Manager at AsiaInspection below are the key hardles what I faced to implement Lean Six Sigma in RMG Factories. - Top Management is not willing to break the traditional manufacturing process. - Not willing to encourage a New Method even Mid level & Bottom Line Management are keen to step in such an to unique process. - Not willing to sphre time to know more aabout a New Conecpt. - Think Peoples are there to take care and let them be responsible for Quality, why should Top Management be involved for such issues. - Not willing to implement idea generation by brain storming as well traing as all the staffs are trained even training & development is a best method for continuous improvement. - Customer are Happy, why spend more time and money for creation of more Value added Products to Clients - Only to solve existing...

Words: 435 - Pages: 2

Premium Essay

Rmg Sector in Bangladesh

...Introduction Background of the study: * We are doing this assignment for completing the principals of management courses in the BBA department. * We are doing this report so that we can analysis the readymade garment (RMG) sector of Bangladesh and find out the problems and remedies of this sector. Objectives of the study: The main objectives of this report are * To gain knowledge about the industrial unrest in the readymade garments industry of Bangladesh. * To identify the problems of RMG sector of Bangladesh. * To analysis the problems of this sector. * To fine out the remedies that could solve the problems of RMG sector. * To gain in-depth knowledge about the readymade garments industry of Bangladesh. Data collection method: This assignment has been completed by taking information from different relevant sources. This assignment also consists of a significant amount of data obtained from some secondary sources. For the secondary data, we have taken some information from the internet. We also collect information from various industries’ web sites. Limitation of the study: Though our study is based on secondary data, there is a possibility of getting fake information. This study is weak in some points. The notable ones are as under: * This report has been made basis only on the secondary data. * The survey was conducted in a very short time so we were not able to collect more information. * This survey made on crisis......

Words: 2590 - Pages: 11

Free Essay

Development of Bangladeshi Rmg Sector

...Development of Bangladeshi RMG Sector Introduction The Ready –Made Garments (RMG) sector has emerged as the biggest earner of foreign currency. The RMG sector has experienced an exponential growth since the 1980s. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshis. An overwhelming number of workers in this sector are women. This has affected the social status of many women coming from low income families. History In the 1950s, labors in the Western World became highly organized; forming trade unions. This and other changes provided workers greater rights including higher pay; which resulted in higher cost of production. In order to control the level of imported RMG products from developing countries into developed countries, Multi Fibre Agreement (MFA) was made in 1974. The MFA agreement imposed an export rate 6 percent increase every year from a developing country to a developed country. In such restrictions, producers started searching for countries that were outside the umbrella of quotas and had cheap labor. This is when Bangladesh started receiving investment in the RMG sector. In the early 1980s, some Bangladeshis received free training from Korean Daewoo Company. After these workers came back to Bangladesh, many of them broke ties with the factory they were working for and started their own factories. In the 1980s, there were only 50 factories employing only a few thousand people. Currently, there are......

Words: 951 - Pages: 4

Premium Essay

Labor Unrest in the Rmg Sector

...Labor unrest in the RMG sector–reasons and remedies October 7, 2010 The prevailing worsening situation in readymade garment (RMG) sector is not good for country’s feeble economy. RMG sector accounts for 76% of our total annual foreign exchange earnings. Once, Jute was the only foreign exchange earning item. But the golden age of Jute is now over. At present, the RMG is our only dependable export item. The textile sector has emerged as a backward sector to this RMG sector. Spinning, weaving, Knitting; dying, finishing etc have emerged as a backward linkage industry. These areas of the of the textile sector are contributing to the economy of the country. So, if the RMG sector suffers any crisis, the repercussion will be felt everywhere in the rickety economy. Now, there are 350 spinning mills operating in the country, which is catering to the demand of the RMG sector and thus saving huge amount of foreign exchange. At present, the capacity of the spinning mills is 1.6 billion meters. There are 180 dying-finishing mills in the country with a capacity of 120 million meters per year. The production capacity of the knitting mills is 41 billion meters. What is important here is that they are capable of meeting local demand. The total workforce engaged in this sector is about 2.5 million, of which 60 percent is women. The total production is being exported to foreign countries. The reasons and the remedies of the present crisis: All of a sudden, labor unrest has increased in our......

Words: 18631 - Pages: 75

Premium Essay

Bangladesh Rmg Sector

...Chaudhury The World Bank Syed Rashed Al-Zayed Josh The World Bank Draft: March 15, 2009 Human Development Sector South Asia Region Acknowledgements This study was made possible by generous funding from the EPDF Trust Fund. We also express our appreciation for additional funding and institutional support from the Education Unit of South Asia Human Development, World Bank as well as the Bangladesh Country Management Unit. The authors would like to highlight the services provided by the survey firm, DATA, who conducted this complex survey with utmost professional competence. Furthermore we are grateful to DATA for providing valuable statistical input in preparing this report. The authors are grateful from valuable comments and feedback received from the Ministry of Education and Economic Relations Division, Government of Bangladesh. The authors would also like to thank Rafiqul Huda Chaudhury, Markus Goldstein, Michelle Riboud, and Halsey Rogers for their valuable comments. This report does not necessarily reflect the views of the World Bank or the Governments they represent. ii Executive Summary 1. A unique feature of the Bangladeshi secondary education sector is the large presence of Islamic institutions of religious learning, commonly known as madrasas. However, unlike other countries in the region with large Muslim populations, the religious education sector comprises of both state regulated private madrasas as well as independent, private madrasas. The......

Words: 11643 - Pages: 47

Premium Essay

Systemic Importance of Rmg Sector

...ISAS Working Paper No. 85 – Date: 7 September 2009 469A Bukit Timah Road #07-01, Tower Block, Singapore 259770 Tel: 6516 6179 / 6516 4239 Fax: 6776 7505 / 6314 5447 Email: isassec@nus.edu.sg Website: www.isas.nus.edu.sg An Economic Analysis of Bangladesh’s Foreign Exchange Reserves M. Shahidul Islam 1 Executive Summary Following the rapid accumulation of foreign exchange reserves in recent months, there has been a growing interest in Bangladesh on the alternative uses of its reserves. However, different reserves adequacy measures based on global best practices confirm that its reserves holding is not markedly higher than what is required. The country’s reserves stand higher than the adequate level only when one considers the current account aspects of reserves benchmark which is perhaps appropriate for the country as its financial system is still autarkic. The dynamics in its balance of payments account also supports the fact. The paper highlights the fact that Bangladesh’s reserves build-up is the result of an ‘investment drought’ in the country. This is partly due to its underdeveloped financial systems, and partly due to other structural problems in the economy – entailing difficulties in properly channelling national savings to investments. As the Bangladesh central bank’s sterilised intervention increases, so will its cost of reserves accumulation. The reason is the interest rate arbitrage between Bangladesh and the United States. The United States government......

Words: 9699 - Pages: 39

Premium Essay

Implimentation of Six Sigma at Rmg Sector in Bangladesh

...Executive Summery The benefits of lean manufacturing are evident in factories across the world. With a view to achieve performance improvement both the developed and developing countries are practicing lean. In this study nine garment manufacturing companies were selected as sample. A field survey with a semi-structured questionnaire, interviews and site visits were conducted to get necessary lean information from the respondent. These companies were selected purposively to ensure the best possible scenario of lean practices in Bangladesh. The focus of this study is to investigate the improvement of manufacturing performance through lean practice in the Bangladeshi garment industry. The findings indicate that the selected companies have adopted a wide variety of lean tools and techniques and gained many performance improvements. Findings also identified the business challenges that drive the companies to practice lean as well as the areas where changes have been made. It concludes with suggestions for further work. Introduction Today’s global supply chains are, in effect, highly complex networks. They are increasingly vulnerable to disruption which can have significant impact on profitability and shareholder value. Recent research at Cranfield School of Management has highlighted where the sources of risk in supply chains might lie and how that risk might be mitigated and managed by the application of ‘Six Sigma’ philosophies and procedures. [pic] As Supply......

Words: 5501 - Pages: 23

Premium Essay

Performance Evaluation of Hr Practices in Rmg Sector

...Chapter One 01 Introduction 1 Introduction In recent years, the Garments sector has emerged as the biggest earner of foreign currency in Bangladesh. Over the last years, Ready Made Garments (RMG) sector experienced impressive growth rates and specifically knitwear products are in high demand by the USA and European markets. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshis. In the field of Industrialization garment industry is a promising step for economy of Bangladesh. In the 1980s, there were only 50 factories employing only a few thousand people. Currently, there are 4490 manufacturing units. The RMG sector contributes around 76 percent to the total export earnings. This sector also contributes around 13 percent to the GDP, which was only around 3 percent in 1991. Of the estimated 4.2 million people employed in this sector, about 50 percent of them are women from rural areas. The garment sector is the largest employer of women in Bangladesh. The garment sector has provided employment opportunities to women from the rural areas that previously did not have any opportunity to be part of the formal workforce. This has given women the chance to be financially independent and have a voice in the family because now they contribute financially. The country’s garments industry grew by more than 15 percent on average during last 15 years. The foreign exchange earrings and employment generation of...

Words: 9509 - Pages: 39

Premium Essay

Rmg Sector Safe Working Environment

...Journal of Business Ethics (2009) 88:351–366 DOI 10.1007/s10551-008-9968-9 Ó Springer 2008 Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms Carmelo Reverte ABSTRACT. The aim of this paper is to analyze whether a number of firm and industry characteristics, as well as media exposure, are potential determinants of corporate social responsibility (CSR) disclosure practices by Spanish listed firms. Empirical studies have shown that CSR disclosure activism varies across companies, industries, and time (Gray et al., Accounting, Auditing & Accountability Journal 8(2), 47–77, 1995; Journal of Business Finance & Accounting 28(3/4), 327–356, 2001; Hackston and Milne, Accounting, Auditing & Accountability Journal 9(1), 77–108, 1996; Cormier and Magnan, Journal of International Financial Management and Accounting 1(2), 171–195, 2003; Cormier et al., European Accounting Review 14(1), 3–39, 2005), which is usually justified by reference to several theoretical constructs, such as the legitimacy, stakeholder, and agency theories. Our findings evidence that firms with higher CSR ratings present a statistically significant larger size and a higher media exposure, and belong to more environmentally sensitive industries, as compared to firms with lower CSR ratings. However, neither profitability nor leverage seem to explain differences in CSR disclosure practices between Spanish listed firms. The most influential variable for explaining firms’......

Words: 9772 - Pages: 40

Premium Essay

Supply Chain Six Sigma in Rmg Sector

...six sigma at RMG Prepared by Mohammad Mesbah Uddin, ID-2013-3-5-019, MBA@BUTEX 1 Mohammad Mesbah Uddin, 27-12-2014 ID-2013-3-5-019, MBA@BUTEX TABLE OF CONTENTS S.I PAGE 0 ABSTRACT 3 1 INTRODUCTION 4 2 SIX SIGMA APPROACH TO DESIGN 5 3 ANANLYSIS OF SUPPLY CHAIN DELIVERY PERFRMANCE 6-7 4 DESIGN OF SIX SIGMA SUPPLY CHAIN 8 5 OUTLINE OF THE PACKAGE 9-10 6 SMMARY AND FUTURE WORK 11 7 2 NAME OF ARTICLE REFERENCES 12 Mohammad Mesbah Uddin, ID-2013-3-5-019, MBA@BUTEX ABSTRACT The ready-made garment (RMG) industry has recently occupied the largest part of exports and foreign currency in Bangladesh and has been for more than a decade the second largest contributor to gross domestic product (GDP). Millions of poor women and men are employed in this industry. However, a supporting import quota system in the USA was stopped in 2005 which has left the RMG sector struggling against new challenges that need to be properly addressed. As the end consumers of the apparel fashion market are becoming increasingly time-sensitive, a decrease in lead time, besides quality and cost criteria, is needed to win more orders from buyers. We have examined the opportunity that lies in an integrated supply chain six sigma to provide a competitive advantage to the Bangladesh RMG sector. A system dynamics approach has been used to identify the dominant variables of supply chain performance (such as enablers, performance or results, and inhibitors) in the RMG sector. A survey......

Words: 1926 - Pages: 8

Free Essay

“Employee Grievance in the Workplace and Its Remedies: a Study on Rmg Sector of Bangladesh”

...relation course teacher Mr. Md. Arifur Rahman assigned us to prepare are port on Grievance handling procedure in a RMG sector of Bangladesh as related topic industrial relation course. We have selected our report topic as “Employee Grievance in the workplace and its remedies: A study on RMG sector of Bangladesh”. We have made a survey for required information in RMG Sector in Bangladesh in net. We have prepared our report on November 28, 2013 which will be submitted by November 29, 2013. 1.2: Objective of the Study We have prepared this report based on two purposes. Those are- 1) To develop our Knowledge in RMG sector of Bangladesh 2) And provide more Valuable Information gathered for who passionate employee to want to join in RMG sector. 1.2.1 Primary Objective: The report aims to provide information on suggest more valuable step follow grievance handling procedure effective of by the RMG sector through Management 1.3: Scope of the Study There is a certain boundary to cover this report. Our particular report only covers Training and Development in RMG sector. We mainly focus how to handling grievance procedure and what types of principles follow to Grievance handling procedures RMG sector. 1.4: Limitations of the Study We are lucky enough to get a chance to prepare a report on “Employee Grievance in the workplace and its remedies: A study on RMG sector of Bangladesh.” We tried heart & soul to prepare a well-informed report. But unfortunately we......

Words: 2481 - Pages: 10

Premium Essay

Recent Unrest in the Rmg Sector of Bangladesh: Is This an Outcome of Poor Labour Practices?

...Recent Unrest in the RMG Sector of Bangladesh: Is this an Outcome of Poor Labour Practices? Chowdhury Golam Hossan (Corresponding author) Assistant Professor of Management College of Business Administrations, Abu Dhabi University Abu Dhabi, UAE Tel: 972-501-5710 E-mail: Chowdhury.Hossan@adu.ac.ae Md. Atiqur Rahman Sarker (Lecturer) Department of Business Administration, East West University 43 Mohakhali, Dhaka 1212, Bangladesh Tel: 88-017-4427-0243 E-mail: mars@ewubd.edu Rumana Afroze (Lecturer) Department of Business Administration, East West University 43 Mohakhali, Dhaka 1212, Bangladesh Tel: 880-181-888-3767 Received: July 2, 2011 doi:10.5539/ijbm.v7n3p206 Abstract The RMG sector of Bangladesh has experienced disputes and violent protest by the workers in recent times. This study explores the reasons for recent unrest in the garment sector. Since managers are mainly responsible for applying human resource practices, this paper has given particular attention to their views on recent attitude changes of workers. Results show that mutual understanding among workers and managers is absent in the RMG sector. This study also states that high-work load, poor behaviour of line managers, low skills and low wage rates are the notable reasons for high job turnover and social unrest. Poor relationship between workers and supervisors is the main source of conflict. This study finds that there is growing demand for work life balance among the workers of RMG sector. Keywords:......

Words: 9644 - Pages: 39

Free Essay

Overview of Sme in Bangladesh

...THE SMALL AND MEDIUM ENTERPRISES (SME) IN BANGLADESH: AN OVERVIEW OF THE CURRENT STATUS DR. MOMTAZ UDDIN AHMED VICE CHANCELLOR STATE UNIVERSITY OF BANGLADESH 1.0 The Case for the SMEs The SMEs1 worldwide are recognized as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labour intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. The case for fostering SME growth in Bangladesh is irrefutable as these industries offer bright prospects for creating large-scale employment and income earning opportunities at relatively low cost for the un-and unemployed especially in the rural areas strengthening the efforts towards achieving high and sustained economic growth which are critically important prerequisites for triggering an exit from endemic poverty and socio-economic deprivation. These promotional arguments for the SMEs, while universally emphasized are often put forward by their ardent advocates in a small versus large context and thus arouse serious debates concerning their economic viability. Much of such controversies may, however breakdown if the intrinsic virtues specific to SMEs and unavailable to large-scale industries are correctly identified and carefully exploited. A combined interaction of the forces of product-mix,......

Words: 3109 - Pages: 13

Free Essay

No Title

...Employee Compensation Practices in Industrial Enterprises of Bangladesh: A Public-Private Sector Comparison Mir Mohammed Nurul Absar*, Zahed Husain Sikder**, Balasundaram Nimalathasan***, Mohammed Moniruzzaman Bhuiyan**** * East Delta University, 1267/A Goshaildanga, Agrabad, Chittagong, Bangladesh e-mail: mmnabsar@yahoo.com ** Department of Management Studies, University of Chittagong, Bangladesh e-mail: zahidsikder@aiub.edu *** Department of Commerce, University of Jaffna, Thirunelveli, Jaffna, Sri Lanka e-mail: bnimalathasan@yahoo.com **** Department of Statistics, University of Chittagong, Bangladesh e-mail: bhuiyan_mz@yahoo.com Abstract Compensation is one the most important functions of human resource management (HRM). The present study aimed at exploring differences between the public and private sector industrial enterprises of Bangladesh with respect to overall status of compensation practices. Data collected from twenty-six public and thirty-four private industrial enterprises shows that the overall status of compensation practices of the private sector industrial enterprises is significantly better than that of the public sector industrial enterprises in Bangladesh. Some implications are also offered for overall improvement of the compensation practices of the public and private sector industrial enterprises of Bangladesh. Key words: compensation, public sector, private sector, industrial enterprises JEL Classification: M12 Introduction Employee......

Words: 5618 - Pages: 23

Premium Essay

The Effect of a Raise in the Minimum Wage on Employment and Profitabilty in the Rmg Sector of Bangladesh, Drawing Sources from Other Developing Countries

...Saima Siddiqa Subject: Labour Economics Date: 22/06/15 The Effect of a Raise in the Minimum Wage on Employment and Profitabilty in the RMG Sector of Bangladesh, Drawing Sources From Other Developing Countries The study of minimum wages has led to many debates surrounding the topic whether a raise in minimum wage can kill businesses in profitability and employment or the change in profitability and employment is insignificant. This is a hot topic for policy makers in both developed and developing countries as a raise in minimum wage affects the economy in terms of economic growth, standards of living for the poor, survival of businesses and employment. A lot of research and literature has shown that a hike in minimum wages do not particularly affect the developed nations but the same hikes in developing countries can cause damage to firms depending on the size of the firms and their profitability. This paper attempts to show that the garments sector in Bangladesh (Ready made Garments Industry) faces the same dilemma. Since the Savar tragedy in late 2013 where a garment factory, Rana Plaza, collapsed which killed more than 1,100 people and injured and more than 2,500 people injured, garment workers and civil society demanded a raise of minimum wage from 3000 tk to 5,300 tk every month. This tragedy and similar events in developing countries lead us to think how businesses especially in the developing countries where wage rates and productivity are low can operate......

Words: 2415 - Pages: 10