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2014 Final Garment Value Chain.docx
1. Traditional Cloth Production Value Chain Analysis
SIDAMA NATIONAL REGIONAL STATE JOB, SKILL AND
Enterprises DEVELOPMENT BUREAU
BY Technology Transfer, Research
and Industry Extension
Directorate
November, 2021
2. Sidama National Region State Job, Skill And Enterprise Development Burea
MEMBERS OF PARTICIPANTS IN THE STUDY
No Full Name Institution Position Contact No.
1 Mr. Zegaye Tamiru S/N/R/S/J/S/E/D/Bureau T/T/R/I/E/Directorate 0980141738
2 Mr. Cheru Geremu Aleta Wondo TVET A- level trainer 0915612805
3 Mr. Lengamo Lentata Hawassa polytechnic B-level trainer 0916055059
4 Ms. Bethelehm Bogale Tegibared TVET A-level trainer 0913389551
5 Mr. Mesele Mengesha Yirgalem TVET Vice Deans 0916278644
6 Mr. Ananiya Tadese Tula TVET college B-level trainer 0916955726
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Acknowledgments
First of all, we thank almighty GOD for giving us the knowledge and grace to complete this
value chain work successfully.
We would like to thank the authority we would like to thank Sidama national regional state job,
skill and enterprises development bureau, Technology Transfer, Research and Industry
Extension, EASTRIP and all colleges’ management for providing us with a good environment
and facilities to complete this value chain. Without helps of the particular that mentioned above,
we would face many difficulties while doing.
We also would like to thank Mr. Musa for showing to us how extended value chain is develop
with some example that related to the extended value chain development.
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Acronym and Abbreviation
CSA Central Statistical Authority
ECX Ethiopia Commodity Exchange
IES Industry Extension and Services
GDP Growth Domestic Product
GTP Growth and Transformation Plan
MSE Micro and Small Enterprises
TT Technology Transfer
TVET Technical and Vocational Education and Training
ECX Ethiopia Commodity Exchange
SME Small and Medium Manufacturing Enterprises
UG under Grade
VC Value Chain
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Tables of Contents
Acknowledgments............................................................................................................................ i
Acronym and Abbreviation.............................................................................................................ii
Tables of Contents .........................................................................................................................iii
List of Table................................................................................................................................... vi
List of Figure.................................................................................................................................vii
CHAPTER ONE: INTRODUCTION............................................................................................. 1
1.1 Introduction ........................................................................................................................... 1
1.2 Statement of the Problem ...................................................................................................... 4
1.3 Objective ............................................................................................................................... 4
1.3.1 General Objective........................................................................................................... 4
1.3.2 Specific Objectives......................................................................................................... 4
1.4 Benefit and Beneficiary......................................................................................................... 5
1.4.1 Benefit of Value Chain Analysis.................................................................................... 5
1.4.2 Beneficiary of Value Chain study .................................................................................. 5
1.5 Scope of the Value Chain..................................................................................................... 5
1.6 Limitations ........................................................................................................................... 6
1.7 Target of the value chain analysis study ............................................................................... 6
1.8 Terms and Definition ............................................................................................................ 6
CHAPTER TWO ............................................................................................................................ 8
REVIEW OF LITERATURES....................................................................................................... 8
2.1 Overview of Cotton production in Ethiopen......................................................................... 8
2.2 Ethiopian traditional cloth production................................................................................ 12
2.3 The raw material /products of weavers and garment producers.......................................... 13
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2.3.1 The weaving and Garment Products............................................................................. 14
2.4 Product supply chain for weavers and garment................................................................... 15
2.5 Garment production process................................................................................................ 16
2.6 Employment and skill development in the textile and apparel sector................................. 19
2.7 Obstacles to the textile and apparel sector .......................................................................... 20
2.7.1 Raw material and Manufacturing ................................................................................. 20
CHAPTER THREE: METHODOLOGY ..................................................................................... 22
3.1 Description of the Study Area............................................................................................ 22
3.2 Data types, Sources and Method of Data Collection .......................................................... 24
3.3 Sample Size Determination and Sampling Technique........................................................ 25
3.4 Research Design.................................................................................................................. 25
3.5 Data Analaysis..................................................................................................................... 25
3.6 Selection of value Chain ..................................................................................................... 25
CHAPTER FOUR: DATA ANALAYSIS.................................................................................... 30
4.1 EXISTING VALUE CHAIN (MAJOR SURVEY FINDING)........................................... 30
4.2 MAPPING OF VALUE CHAIN ACTIVITY..................................................................... 36
4.2.1. AS IS / Existing Traditional clothing production value chain /Mapping/................... 36
4.3.1. Traditional clothing production (TO BE) India........................................................... 41
4.3 Value Chain Analysis.......................................................................................................... 42
4.3.1 AI IS Traditional clothing production value chain analysis /Hawassa/ ....................... 42
4.3.2 TO BE Traditional clothing value chain analysis of (Bench Mark)............................. 46
4.4 Gap between AS IS and Bench Mark.................................................................................. 52
4.5 Comparative analysis of AS Is and Bench Mark (TO BE) ................................................. 53
4.6 Identification of Gap/Constraints........................................................................................ 59
4.7 Prioritizing technology gaps/constraints ............................................................................. 62
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4.8 TECHNOLOGY IDENTIFICATION AND CATEGORIZATION................................... 63
4.8.1 Technology identification............................................................................................. 67
4.8.2 TECHNOLOGY CATEGORIZATION....................................................................... 70
4.9 Traditional cloth production value chain actors and their roles .......................................... 72
CHAPTER FIVE: ......................................................................................................................... 73
CONCLUSION AND RECOMMENDATION............................................................................ 73
5.1 Conclusion........................................................................................................................... 73
5.2 Recommendation and Future Works................................................................................... 73
Refrences....................................................................................................................................... 75
APPENDICE................................................................................................................................. 82
Appendix A. QUESTIONNAIRE TO BE FILLED OUT BY THE COMPANY .................... 82
Appendix B. List of SMEs contacted for traditional cloth production value chain study ........ 87
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List of Table
Table 2.1 Top teen cotton producer countries in the world .......................................................... 10
Table 3.1 value chain selection criteria......................................................................................... 27
Table 4.3 Benchmarking Criteria Checklist.................................................................................. 40
Table 4.3 AI IS Traditional clothing production value chain analysis ......................................... 42
Table 4.5 Comparative Analysis of Traditional Cloth Production Value Chain .......................... 53
Table 4.5 Identification of gap/constraints ................................................................................... 59
Table 4.6 prioritizing technology gaps/constraints...................................................................... 62
Table 4.7 Prioritizing the Constraints........................................................................................... 63
Table 4.7 Technology categorization............................................................................................ 70
Figure 5.1 Traditional cloth production value chain actors and their responsibility .................... 73
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List of Figure
Figure 2.1 Ethiopian Cotton production Trends in 2010 -2020...................................................... 8
Figure 2.2 Potential cotton production areas in Ethiopian.............................................................. 9
Figure 2.3 Traditional spinning processes (Inzirt)........................................................................ 13
Figure 2.5 Raw materials row weavers and garments .................................................................. 14
Figure 2.6 Products of weavers and garments partially................................................................ 15
Figure 4.1 Input materials used for making traditional costumes................................................ 30
Table 4.1 Types and quantity of the machinery used by traditional weaving enterprises. .......... 33
Figure 4.2 leading exporters of woven cotton fabrics and cloths worldwide 2019. ..................... 37
Figure 4.3 monthly minimum wages in the global garment industry........................................... 38
Figure 4.4 global sales prices of a products.................................................................................. 39
Figure 4.5 Infrastructure developments for various countries the source of world global 2016.. 40
Figure 4.6 Traditional Cloth Production TO BE Value Chain. .................................................... 41
Figure 4.6 Saris and Dhotis cultural dress in Indian..................................................................... 46
Figure 4.4 Gap between AS IS and Bench Mark.......................................................................... 52
Figure 4.8 Traditional cloth production value chain the actors ................................................... 72
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CHAPTER ONE: INTRODUCTION
1.1 Introduction
The Ethiopian Government showed its diligence to cotton value chain in first (2010-2015)n and
second (2015-2020) growth and transformation plans striving to be one of the leading textile
sourcing destinations and to achieve middle income status by 2025 (Dessalegn, 2016). In
addition, industrial policies have a selective character, providing direct support for and, hence,
influencing resource allocation toward priority sectors [Brautigam et al., 2015; United Nations
Economic Commission for Africa (UNECA), 2015].
The Ethiopian traditional cloth produced by handloom has long historical development, making
an important contribution to satisfying peoples’ requirement for traditional textile products. The
MSEs in this sub-sector were informal with small profit margins and employing a maximum of 3
– 5 employees. Entry into the traditional garments sub-sector is difficult, as it requires the
acquisition of traditional weaving skills, which are passed down from generation to generation
within the family. Nevertheless, potential exists for increasing opportunities for MSEs and
employment as the Government of Ethiopia invests more in increasing in areas under cotton
through irrigation and developing IAIPs that are aimed at industry development. The
employment opportunities will include skilled and unskilled labor in spinning, weaving, knitting,
embroidery and finishing. Though likely to face challenges due to their educational levels,
returnees are likely to access these opportunities.
The Government of Ethiopia has encouraged returnees to be included in the sector by providing
training through TVETs and providing financing and technical support through the MFIs and
MSE Agency respectively. The returnees were engaged in MSEs, which only require basic skills
in business management for enterprise owners and traditional weaving and sewing skills for
employees. While the basic skills in entrepreneurship and were available, access to traditional
weaving skills is a challenge, as the skills is passed down from generation to generation and no
formal skills providers exist. However, the TVETs were providing skills in tailoring and were
supporting upgrading of the technology used in the traditional garments. It was noted in a
number of studies that shortage of skilled personnel at management and operational level was
one of the constraints facing firms in textiles and garments. However, due to their lower
educational qualifications, it will be difficult for returnees to access the few existing
opportunities. (Ashley Aarons, 2017)
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Ethiopia has adopted an active, state driven industrial policy aimed at incentivizing exports,
attracting lead firms and foreign direct investment (FDI), supporting local firms and creating
local linkages to promote priority sectors such as apparel and textiles. The Ethiopian
Government along with The Ethiopian IPDC is on the verge of establishing the whole value
chain in the country starting from producing cotton
The Government of Ethiopia hopes to bring in textile exports worth $30bn by 2025 and increase
the GDP of the country, household income, foreign currency and employment in the country by
establishing these industrial parks throughout the country. Once up to full capacity by the end of
2018, the factories are expected to create around 60,000 jobs on double shifts and generate an
annual export value of US$1bn.
Table 1.1 Overview of firm ownership
Traditional clothes in Ethiopia are made from hand woven fabric. The outfits are produced from
cotton that is processed in to yarn. Wool, silk and synthetic fabrics are also used in some cases.
Hand weaving is a traditional technology to produce special as well as ordinary fabrics in the
rural and semi-urban areas. Weaving is traditionally found throughout Ethiopia. The major
products of the handloom sector are divided in to semi-finished and finished fabrics.
The semi-finished fabrics are usually channeled to the domestic garment factories for further
processing. The finished products are divided further into traditional clothing categories such as
Netella, Gabi, Kemis, Buluko, Hade, Giteto, Scarf and Kuta which are sold mainly in the
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domestic market and to Ethiopians living abroad. The traditional hand woven fabrics in Ethiopia
are usually dressed during wedding; Gada, Irecha, Fiche Chamballala, Lika and Gimuwa
ceremonies; national holyday, birthday, marriage, church, various rituals in all ethnic groups in
the country which clearly reflect the cultural mosaic and the beauty of diversity. Therefore, the
socio-cultural value of weaving products is colossal in Ethiopia.
The story of Ethiopia cotton is part of a greater cotton saga that covers the globe and reaches
back into ancient time. A strong and vibrant cotton industry still exists in Ethiopia today on large
and small farms, both private and government owned, including artisan coops that create
beautiful, luxurious textiles from cotton raised and processed on small farms. Hand weaving and
crafting sector are one of the most important nonagricultural sources incomes in Ethiopia. In
Ethiopia, hand weaving is an important tradition with deep roots. For generations, all over the
country, many households have depended on weaving to earn income and
sustain livelihoods. Handloom weaving is a demanding trade traditionally done by men whereas
the spinning of cotton in preparation of weaving is often done by women.
According to Cottage/Handicraft Manufacturing Industries Survey, the textiles industry has the
second highest number of establishments in the cottage and handicraft manufacturing industry in
Ethiopia. It represents 23% of the total number of cottage and handicraft enterprises, with almost
55% of these located in rural areas of the country. Next to food products and beverages,
the textile industries absorb the highest number of labor force in the country.
The traditional cloth production follows the processes of spinning, warping, starching the warp
thread, setting up loom, weaving and sawing. The first step in weaving is ginning, the removal of
the cotton seeds and loosening the bolls by hand. In rural areas, people may use bowing (Degan)
to loosening the bolls. In order to prepare spun yarn and cotton yams, a person has spun the
cotton fibers using Insert (spindle). Nowadays, spinning among the members of the Shiro Meda
Dorze is losing its importance because they easily get mill yarns or factory made yarns imported
from Chain. As thread passes out of mewerweria, the shuttle, the weaver uses his/her two hands
to throw the shuttle from one side to the other.
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1.2 Statement of the Problem
Traditional cloth making, handloom weaving, is one of heritages of craft skills in Ethiopia. It has
a long history in the country and is a source of income for a large number of people both in rural
and urban areas. In our society, Ethiopia there is high demand of cultural clothes. However there
is a lot of problems such as shortage of row material supplier, produce poor quality goods,
production process is traditional way, they are not using advanced machines, no advancement on
products that they produce. Due to this the society may not use cultural clothes. This value chain
analysis enables to find out problem of the sectors and to find out solution for the stated
problems.
Ethiopian has a long history of producing cotton and traditional clothing. Small and medium
traditional weaving and sewing enterprises have played an incredible role. However, as in the
case of Ethiopian and Sidama region, the textile and apparel sector has not been able to achieve
the desired goals. The main reason for this such as fabric production and sewing process is
traditional way, they are not using advanced machines, the lack of skilled labor in the sectors
and the lack of identification of input material opportunity in the country. Therefore, this value
chain analysis enables to find out problem of the sectors and to find out solution for the stated
problems.
1.3 Objective
1.3.1 General Objective
To develop a competitive and well-organized value chain analysis on traditional cloth production
then to bring a sustainable development of the sector in the regional and national economy to
satisfy the end-user in Sidama regional states.
1.3.2 Specific Objectives
To identify the current status of textile and garment industry in Sidama region.
To identify the gaps for the Enterprises.
To identify a number of technologies by comparing the AS IS to benchmark
To Transfer the identified technologies to the enterprise to ensure the competitiveness.
To engage TVET trainers on technology transferring activities
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1.4 Benefit and Beneficiary
1.4.1 Benefit of Value Chain Analysis
This value chain focuses on identify the existing textile and garment sector problem (gaps) and
identify technology to create job opportunity for Micro Small-Scale Enterprise. Additional to
this it can be produced with the available materials in Ethiopia. Furthermore, the Value chain
will have a foreign exchange saving effect to the country by substituting the current imports by
improving product quality and maximize productivity.
1.4.2 Beneficiary of Value Chain study
The Beneficiaries of this value chain study will be
The weaver and apparel sectors of small & medium enterprises (SMEs operators)
Small holder farmer engaged in cotton production
TVET institutes and University
Government and Non-government organization (NGO)
Society
They are the main beneficiaries of the unemployed citizens, raw materials suppliers, accessory
suppliers, machine, & equipment’s suppliers who want to organize small and micro enterprises.
Because this sector will not be easy to estimate as it will involves many segments of society with
a small capital and save operators and users from additional costs
1.5 Scope of the Value Chain
The scope of this value chain is a study including the textile and garment SMEs in the sidama
region, to modify the process of adding value on the value selected product from the input
material (cotton fiber) to the end of user/customer. Study the sequence of needed to add value
and make improvements. This study addresses GTP priority Sectors and Sub Sectors, TVET, and
those who are working for the development and competitiveness of micro, small and medium
enterprises at the sectors, subsectors and commodity levels, who lead efforts to implement value
chain analysis in their organization.
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1.6 Limitations
The study was conducted on the basis of primary and secondary data. As the results, inadequate
availability of in depth books on the value chain concepts for MSEs in the textile and apparel
sectors. During data collection and analysis of this value chain development there is no cotton
farming site around Hawassa. In addition, insufficient availability of research articles and
journals also influenced respondents during data collection, lack of punctuality and lack of time
affected the integrity of the study.
1.7 Target of the value chain analysis study
Traditional fabric weavers MSE’s.
Consumers of traditional clothing and manufacturing enterprise
Traditional cloth manufacturers small scale enterprise
Main stakeholders in the textile and apparel sectors
Smallholder farmers in the cotton production
Traditional cloth whole seller and retailers
1.8 Terms and Definition
Value chain - is a sequence of target-oriented combinations of production factors (from input to
the market for specific product/services) that create a marketable product or service to the final
consumption. a value chain is a set of activities that a firm operating in a specific industry
performs in order to deliver a valuable product for the market.
Value chain analysis - describes the activities within and around an organization, and relates
them to an analysis of the competitive strength of the organization.
Simple value chain- value chain development techniques describes the full range of activities,
which are required to bring a product or service from the immediate input.
Extended value chain - value chain development techniques that much more complex than
simple value chain that tend to be many more links in the chain.
As is - is the actual or existing sequence of activities to deliver a product or services to the
market by an enterprise.
Benchmarking - the process of comparing own performance parameters with the performance
parameters of businesses or value chains considered the leaders in the field.
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To be - represents the benchmark or the standard, or a set of standards, used as a point
of reference for evaluating performance or level of quality.
Gap - is something missing from an activity or a system that prevents it from
being complete or perfect; the difference between as is and to be/benchmark.
Main chain - is a major activity of workflow in a value chain.
Sub chain - is a sub/support activity of workflow in a value chain.
Inputs are any resources used to create goods and services
Technology transfer - is Tvet creating, producing, and transferring of new means of production
or service to the MSEs for better productivity and profitability.
Apparel - also known as clothing is a fiber and textile material worn on the body
Clothing - is made of fabrics or textiles, but over time it has included garments made from
animal skin and other thin sheets of materials and natural products found in the environment, put
together.
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CHAPTER TWO
REVIEW OF LITERATURES
2.1 Overview of Cotton production in Ethiopen
Ethiopia has an arable land suitable for cotton cultivation. The country has a long history of
cotton farming and making of traditional clothes. Cotton is one of the oldest cultivated fibber
crops and major cash crops in Ethiopia. Though cotton cultivation in Ethiopia was carried mainly
by small scale farmers using traditional method and commercial production of cotton started
in1960 and from 1960 onwards large scale farming carried out by state farms (Kassaw, 2013).
Ethiopia has enormous potential for the production of cotton. A recent study indicates that more than
3 million Ha of land suitable for cotton production, which is greater than that of Pakistan, the fourth
largest producer of cotton in the world. Pakistan harvests about 4.5-5.7 million MT of cotton
annually from a total cotton area of 2.9 million Ha. Out of the total 3 million Ha of land suitable for
cotton production, 1.95million Ha or 65% is found in 38 high potential cotton producing areas and
the remaining 1.05million Ha or 35% is in 79 medium potential districts. Annual cotton area planted
in Ethiopia accounts for about 3.6% of the total area (Seboka, 2020).
The current attractive domestic market prices, approval of Bt cotton seed varieties for
commercial cultivation, and thriving textile industrial parks will encourage existing and new
commercial farms to boost cotton production. Cotton plantings in 2018/19 were delayed in the
Southern and Amhara regions due to a late rain onset. Cotton farmers reported incidence of pests
between end of August and mid-September. In addition, frost occurred in the southern and
northwest regions though it had minimal impact on production. (ET1906, 2019)
Figure 2.1 Ethiopian Cotton production Trends in 2010 -2020
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The GOE is investing considerable resources to build textile and industrial parks around the
country, while at the same time working to attract potential international investors. Foreign
investors from the United States, China, Korea, India, Sri Lanka, Bangladesh, and others are
setting up shop in these parks to take advantage of inexpensive labor and electricity costs, as well
as other incentives. Currently, there are 21 textile and apparel manufacturers operating in the
industrial park. See Figure 2. Ethiopia approved commercialization of Bt cotton in order to
boost yields and production. Last year, the GOE approved two different varieties of Bt
cottonseeds (JKCH 1050 and JKC 1947) for commercial cultivation. There is an on-going
preparation to import the Bt cottonseeds from India for upcoming planting season. About 800
hectares of land is planned for Bt cotton plantings as a trial production. More details can be
found in our Biotechnology Annual Report ET1901.
Figure 2.2 Potential cotton production areas in Ethiopian
Cotton is grown around the world and is typically harvested by machines but is sometimes
picked by hand. Nearly 25 million tons of cotton is produced worldwide annually. From August
2019 to July 2020, the global cotton consumption fell by 15 percent as a result of the Covid-
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19 pandemic. However, according to the US Department of Agriculture, the global cotton
consumption from August 2020 to July 2021 is expected to increase by 11.30 percent. The
majority of the cotton comes from India, the United States and China – the world’s top three
cotton producers.
Rank Country Cotton production in thousand metric
tones
1 India 5,770
2 United States 3,999
3 China 3,500
4 Brazil 2,787
5 Pakistan 1,655
6 Turkey 806
7 Uzbekistan 713
8 Australia 479
9 Turkmenistan 198
10 Burkina Faso 185
Table 2.1 Top teen cotton producer countries in the world
Cotton is used by millions every single day across the world and the demand for cotton is
expected to rise over the coming years. This hike in demand has increased the need for
sustainable cotton. Ways to produce cotton while caring for the environment are at the forefront
of conversations in the drive for sustainability. Conventional cotton production currently
accounts for 18 percent of worldwide pesticide use and producers of cotton are being poisoned
by heavy pesticide use. More than 100,000 US farmers die each year from cancers related to the
chemicals. Sustainable cotton production is the solution to these issues. It reduces the use of
hazardous chemicals, uses less water, and reduces poverty for cotton farmers.
2.1.1 Cotton supply chain management
Supply chain management is the efficient and effective production and handling of goods and
services from point of origin to point of sale and consumption in a coordinated approach and
requires coordinated efforts by all stakeholders, and within the supply chain processes, to ensure
efficiency in the overall supply chain. Intensive use of chemicals and maximum utilization of
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natural resources such as water, are required to ensure the sustainability of the entire supply
chain management cycle. According to one study, the production of one pair of jeans requires
8,000 liters of water which is a big waste of natural resources.
A significant product of our study was the design of a complete and detailed cotton supply chain
management cycle which is depicted in Figure 2.3.
Figure 2.2 Cotton supply chain management flow chart
2.1.2 Farm level cotton SCM cycle
In the cotton supply chain flow chart shown as Figure 2.3, the first process is cotton production at the farm level.
The farm level production processes are divided into 6 stages (land preparation, sowing, crop management, cotton
picking, cotton storage, and post-harvest practices) which were identified and confirmed by our literature review
together with discussions with technical experts.
Land preparation is the first stage of the farm level production supply chain cycle which is achieved by a variety of
activities such as bedding and furrowing, laser leveling, deep ploughing, and the use of rotavators, scarifies, plough
and other ground preparation machinery. Sowing practices include seed grading, anti-fungal and other treatments of
seeds, sowing; which may be by hand but is now or likely to be using planter equipment and seed drills, and then
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germination tests. Crop management includes irrigation, thinning of plants (spacing), insect and weed pest control or
eradication, soil nutrition testing etc. Picking of cotton is still often done by hand, manually, but also by machines.
In Pakistan manual picking is still widespread and common. Picking requires special measures to be achieved
successfully, such as only picking after the morning dew has dried away, picking bolls from the bottom to the top of
the plant, and only picking only bolls that are at least 50% open. Post-harvest practices for cotton storage also
require special quality assurance measures such as being protected from heat, storage in dry conditions, storing on
plastic sheets, in small covered heaps. These are measures against both insects and diseases, such as mild and
mould. Sales are usually made by farmers direct to a gin, or through middle men. The farming production cycles
will then continue into preparation of the land for other crops.
Figure 2.3 Farm level cotton production supply chain cycle
2.2 Ethiopian traditional cloth production
Traditional textiles in Ethiopia have centered on the country's reputation as a cradle of cotton.
The processes of spinning and weaving have traditionally been carried out through a division of
labor between the sexes; the women cleaning the cotton filaments and spinning the thread which
was then woven by the men folk. Ethiopian women would grow or buy unrefined cotton, card it
by hand and spin it with an “Inzirt”. Women twist the “Inzirt”, essentially a free standing
spindle, in one hand while pulling the cotton in the other to make yarn ‘diwur’. The Inzirt is
topped with a “kesem” which acts as a bobbin to spool the thread. But such traditional
production and clothing mechanism didn’t foster the competitiveness of these fashions globally.
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Figure 2.3 Traditional spinning processes (Inzirt)
The handloom sub-sector in Ethiopia is a traditional-based and home grown activity. Weavers
operate the loom by pressing pedals with their feet alternatively up and down to interweave the
threads. Most handlooms are only 70 – 90 cm wide so that both edges of the warp thread are
within arm's reach. However, this limits the width of the cloth that can be produced. The
weavers’ products are divided into traditional clothing categories like netella, Gabi, kemis, and
kuta which are sold mainly in the domestic market and to Ethiopians living abroad, and home
furnishing textiles, which are destined to the international market (Abdella and Ayele, 2013).
Figure 2.4 the Traditional women’s dress (Kemis, Mekenet and Netela)
2.3 The raw material /products of weavers and garment producers
Raw Materials are the major inputs of any product and Production Process. Weaves and
garments of these traditional fashions are utilized different types of raw materials. The main raw
materials used in Handloom Weaving and Garments are
Yarns for weft
Different types and colors of threads(The weavers name them as China, Saba, etc)
Raw cotton for "MAG" to produce traditional clothes Netella, Kemis and Kuta
Different cotton clothes and threads ( kind of yarn used for sewing ) for garments
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Figure 2.5 Raw materials row weavers and garments
The “Mag" is manufactured produced locally and Yarn is produced by local manufacturers
(Textile and ginning industries) from raw cotton and imported mostly from China. The Threads
are imported from China and garments buying these raw materials from retailers and even re-
retailers individually. Due to this long chain and imported from foreign countries the garments
and weavers were paying much cost for raw materials.
2.3.1 The weaving and Garment Products
There are a wide range of products produced by the Handloom Weaving and Garment. The types
of products produced in the cooperatives could be broadly classified as Traditional Cloth Fabrics
and relatively modern Accessories.
1. Traditional Cloth Fabrics & Dressings: This major category of Handloom Weaving and
Garment includes those fabrics produced for Traditional Clothes like Gabi, Netela, Kemis,
Tibeb, and Shema for cultural clothes of nations and Nationalities of Ethiopia.
2. Modern Accessories: It has two sub-categoriesa.
Home Accessories like Pillow Cover, Wall Hygiene, Napkins, Bed Spreads ,pillows,
Table Covers, and b.
Fashions like Hand Bag, Scarves, Shawls, Fabrics for Shirts , dresses, etc The figure 3.6 below
some of the modern accessories and products that are produced by weavers and garment at
Gundish Meda Traditional clothe production and distribution center.
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Extended Traditional value chain analaysis 15
Figure 2.6 Products of weavers and garments partially.
2.4 Product supply chain for weavers and garment
A product’s supply chain for weavers and garments is typically thought to be linear - a simple
string of transformations of a raw material into a final consumer product. For weavers and
garments, this involves long upstream logistics which includes 1) growing cotton, 2) picking
cotton, 3) separating lint from stems and other materials (ginning), 4) spinning lint into yarn, 5)
knitting or yarn producing, 6) weaving and garments convert into a final product, 7) distributing
and selling the product, and 8) using the product by customers. This indicates that textile supply
chain is the longest and needs a cooperation and coordination to be competitive in the Textile
market internationally. These traditional fashion producers purchased most of their inputs from
textile factories producing yarn and thread mostly. Currently, the garments and weavers used the
inputs from Chain as Ethiopian textile factories are not capable to produce all their inputs
(Kassaw, 2013).
In value chain, producers are operating as individual producers and as cooperative or group. The
main role of these producers in the channel is making intermediate and semi-finished weaving
products and supplying it to processors who are themselves further value add up.
The major constraints of the sector during the production of weaving products are insufficiency
of credit availability and technological limitation to improve and expand the productivity of
weaving in terms of both quality and quantity. The major constraints of the traders are supply
problems. The traders believe that because of market chain limitation the supply of weaving
product from producers and processers is limited compared with the demand of products. In
addition, the government systems like tax burden, maladministration and lack of credit
availability are also barriers for their commercial activities. The sample respondents also suggest
some possible remedies in order to improve their trading activities. From the indicated solutions
the prominent one is alleviating supply problems by producing and processing qualified,
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Extended Traditional value chain analaysis 16
competitive and attractive Shemma product even which can be used for another day beside
holiday and occasional ceremony. In the second approach, if the government supports and
facilitates different stakeholders of the sector by any means there is no way that the system could
not be improved. (Alebachew, 2017)
2.5 Garment production process
Receiving Fabrics - Garment factories receive fabric from textile manufacturers. Garment
factories often have a warehouse or dedicated area to store fabric between arrival and
manufacturing.(www.textileschool.com, Apparel Manufacturing 1,5 Processes)
Figure 2.7 Garment production process flow charts
Fabric Relaxing- Garment manufacturers perform the relaxing process either manually or
mechanically. Many garment manufacturers will also integrate quality assurance into this process
to ensure that the quality of the fabric meets customer standards. Fabrics that fail
to meet customer standards are returned to the textile manufacturer.(ww.textileschool.com,
Apparel Manufacturing Processes).
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Spreading, Form Layout, and Cutting - After fabric has been relaxed, it is transferred to the
spreading and cutting area of the garment manufacturing facility. The fabric is first cut into
uniform plies and then spread either manually or using a computer-controlled system in
preparation for the cutting process. Fabric is spread to allow operators to identify fabric defects,
control the tension and slack of the fabric during cutting, and ensure each ply is accurately
aligned on top of the others. The number of plies in each spread is dependent on the fabric type,
spreading method, cutting equipment, and size of the garment order. Next, garment forms—or
patterns—are laid out on top of the spread, either manually or programmed into an automated
cutting system. Lastly, the fabric is cut to the shape of the garment forms using either manually
operated cutting equipment or a computerized cutting system. (www.textileschool.com, Apparel
Manufacturing Processes)
Embroidery and Screen Printing - Embroidery and screen printing are two processes that
occur only if directly specified by the customer; therefore, these processes are commonly
subcontracted to off-site facilities. Embroidery is performed using automated equipment, often
with many machines concurrently embroidering the same pattern on multiple garments. Each
production line may include between 10 and 20 embroidery stations.
Sewing - Garments are sewn in an assembly line, with the garment becoming more complete as
it progresses down the sewing line. Sewing machine operators receive a bundle of cut fabric and
repeatedly sew the same portion of the garment, passing that completed portion to the next
operator. For example, the first operator may sew the collar to the body of the garment and the
next operator may sew a sleeve to the body. Quality assurance is performed at the end of the
sewing line to ensure that the garment has been properly assembled and that no manufacturing
defects exist. When needed, the garment will be reworked or mended at designated sewing
stations. This labor-intensive process progressively transforms pieces of fabric into designer
garments. (www.textileschool.com, Apparel Manufacturing Processes)
Spot Cleaning and Laundry - In addition to identifying manufacturing defects, employees
tasked with performing quality assurance are also looking for cosmetic flaws, stains, or other
spots on the garment that may have occurred during the cutting and sewing processes. Spots are
often marked with a sticker and taken to a spot- cleaning area where the garment is cleaned using
steam, hot water, or chemical stain removers. Some customers request that a garment be fully
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laundered after it is sewn and assembled; therefore, garment factories often have an on- site
laundry or have subcontract agreements with off-site laundry operations. Commercial laundry
facilities are equipped with at least three types of machines: washers, spinners, and dryers. Some
facilities also have the capability to perform special treatments, such as stone- or acid-washing.
(www.textileschool.com, Apparel Manufacturing Processes)
Ironing - After a garment is fully sewn and assembled, it is transferred to the ironing section of
the facility for final pressing. Each ironing station consists of an iron and an ironing platform.
The irons are similar looking to residential models, but have steam supplied by an on-site boiler.
Workers control the steam with foot pedals and the steam is delivered via overhead hoses
directly to the iron. In most facilities, the ironing platforms are equipped with a ventilation
system that draws steam through the ironing table and exhausts it outside the factory.
(www.textileschool.com, Apparel Manufacturing Processes)
Packaging and Shipping
In the last steps of making a product retail-ready, garments are folded, tagged, sized, and
packaged according to customer specifications. Also, garments may be placed in protective
plastic bags, either manually or using an automated system, to ensure that the material stays
clean and pressed during shipping. Lastly, garments are placed in cardboard boxes and shipped
to client distribution centers to eventually be sold in retail stores. (www.textileschool.com,
Apparel Manufacturing Processes)
Quality Dimensions of Garment
Apparel quality has two dimensions:
A. Physical aspects or what the garment is; and
B. Performance aspects or what the garment does.
The physical aspects of a garment determine its performance. Therefore, consumers purchase
garments with specific physical aspects that they believe will fulfill their performance
expectations.
A) Physical aspects
Garment physical aspects provide a tangible form and composition. Physical aspects include the
garment’s design, materials, construction and finish. Design provides the plan for the garment
style. For example, is the shirt/dress loose or fitted.
B) Performance aspects
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Garment performance aspects determine the standards it meets and how the consumer benefits
through it. Performance aspects include the garment aesthetic and functional performance.
2.6 Employment and skill development in the textile and apparel sector
One of the significant benefits of this sector to the country is employment of the population
which is factorial in increasing the per capita income of the Ethiopian. Along with employment
generation, female incomes poverty reduction are also a major contribution of this sector to
develop sustainable livelihoods in the country. The textile sector expands across to not only large
industrial sector but also to small and medium scale enterprises (SMEs). According to the
academic research studies. The government takes considerable efforts for the expansion and
growth of SMEs in this sector as they hold a big contribution into the GDP of the country.
Central Statistical Agency (CSA) (2015) and ETIDI (2016) have documented that 57,432
workers are employed in the textile sector. According to Staritz et al. (2016), women comprise
around 75 per cent of employment in the sector with a higher share in apparel than in textile and
men occupy the majority of technical and management positions. Employment through the
textile sector encourages a chain reaction in the society of Ethiopia which makes it an obvious
reason to promote this industry. Textile and apparel sector completes the circle of the industry,
stakeholders, academia and people. As the country moves fast in the direction of industrial
progress skill development becomes quite crucial. The firms from abroad are a mix of local and
expatriate people and offer a faster development to the human resource of the country. The skill
level of the workers cannot be considered to be very high but is much appreciated in other sub-
Saharan counterparts. Some of the other issue which are in consideration alongside are social
compliance, working wages and environmental upgrading.
Horizontal efforts have been made by the government which include creating a conducive
environment for private sector development, particularly to invest in infrastructure (power
generation and transport), education (primary education, technical and vocational education and
training (TVET) and universities. The role of academia is crucial at this moment as the sector
suffers intensively from lack of skilled labor at all levels. Lack of skilled labor is directly
proportional to the quality of the final garment product which indeed is a major factor
contributing to the export performance of the country. In apparel industry, training and learning
skills helps to compete in the global market and in increasing productivity of the employees that
will help further to achieve its long-term goal (Chatterjii, 2014). It has been well agreed in the
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Extended Traditional value chain analaysis 20
literature (Kunz, 2005) that skilled labor contributes majorly to the growth of small and medium
scale industries and is a facilitator for technology adoption. The establishing of fashion and
textile institutes and TVET centers by the government is an important step to skill the labor in
low and middle managerial levels. There is no doubt that generation of employment through the
fashion and textile industry contributes to the economic progression, but skilling of labor will be
instrumental in the success of Ethiopian companies on the clothing and textile map of the world
as the race to produce faster will increase in the future (Khurana, 2018).
2.7 Obstacles to the textile and apparel sector
It is quite evident that the textile and apparel sector make a big contribution to the economy in
both manufacturing and consumer sectors, but there still lies some gaps which need to be filled at
the earliest. Below are listed problems of the whole apparel value chain which are observed in
the literature and experience of the author.
2.7.1 Raw material and Manufacturing
Cotton value chain. The agricultural practices related to cotton production represent the
beginning of the value chain needs a lot of attention. Dessalegn (2016) marks in his research that
there are significant gaps in terms of good agricultural practices. The barriers include lack of
education and training of the farmers, institutional problems, behavior change, the lack of
interactive communication between research, pest and pesticide management extension, water
management at irrigated locations, lack of demonstration of techniques and technology transfer.
Toward the end of the value chain, production and marketing are done in a casual manner, and
there is no practice whereby producers can be assured of a reliable market and traders a steady
supply of cotton.
Availability of raw materials. This is the starting point of challenges what the sector faces
today. When raw cotton is exported, the domestic textile mills lose the best quality (grade-A) of
the raw material and force the textile mills to use inferior quality (might be grade B and C) raw
cotton with highest cost. (Yared, 2010). Because of the challenges in textile manufacturing, the
garment factories often face shortages in raw material, yarns, fabrics and accessories and
subsequently disrupt the production flow leading to longer lead times and cost as a major
impediment in their operation (Staritz et al., 2016). Because of this unavailability, it is observed
in Addis Ababa that many garment factories cannot meet their overheads and finally are not
profitable as the machines are lying empty. This also raises a major issue in the final quality of
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the product while exporting to the USA and Europe, as there is continuous shortage of raw
material locally.
Working capital and exchange rates. The government has policies to support loan facilitation
for new investments and SMEs. But a consistent flow of working capital becomes quite a task. In
case of SMEs, it was also observed that the owners especially women entrepreneurs had no
awareness on the availability of the funds and so could not increase the volume of production.
The inflation in US$ value increased by 15 per cent in the final quarter of 2017 has affected
many apparel companies and the investors. The raw materials which were imported because of
shortage or unavailability are now much costlier to the local producer not just in apparel but
other sectors also. There was a visible US$ shortage in the industry sector already and now turns
to be worse, and it takes a considerable amount of time to transfer funds outside the country. The
depreciation of the nominal exchange rate has created the adverse effect on the sector’s export
performance in the past as well (Yared, 2010) and investor’s interest in the sector.
Lack of skilled labor. The routing of manufacturing to the country is cheap labor but skill
remains argumentative. Garment factories require all level of skills to function smoothly (for
example, sewing, pattern making, technical skill set). Ethiopia currently has a cut, make and trim
status in garment manufacturing and to go on to freight on board it need
to step-up in the skilling of labor. Unskilled labors have hampered this sector in terms of low
productivity and poor quality of final product. It also prevents them from climbing a level to
value added or complex garments which is also important for revenue. There are few labor
skilling institutions in the country, but on a larger scale, unskilled labor persists as one of the
overriding problems.
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CHAPTER THREE
METHODOLOGY
3.1 Description of the Study Area
Hawassa (Amharic: አዋሳ also spelled Awassa) is a city in Ethiopia, on the shores of Lake
Awassa in the Great Rift Valley. It is 273 km (170 mi) south of Addis Ababa via Bishoftu,
130 km (81 mi) east of Sodo, and 75 km (47 mi) north of Dilla. The town serves as the capital of
the Sidama Region. It lies on the Trans-African Highway 4 Cairo-Cape Town and has a latitude
and longitude of 7°3′N 38°28′ECoordinates: 7°3′N 38°28′E and an elevation of 1,708 meters
(5,604 ft) above sea level. Its name comes from a Sidamic word meaning "wide body of water".
The city is home to Hawassa University (which includes Wondo Genet College of Forestry and
Natural Resources, an Agricultural College, the Main Campus, and a Health Sciences College),
Hawassa Adventist College, and a major market. The city is served by Awasa
Airport (ICAO code HALA, IATA AWA), opened in 1988. Postal service is provided by the
main branch; electricity and telephone service are also available. Important local attractions
include the St. Gabriel Church and the Awassa Kenema Stadium. Fishing is a major local
industry.
Hawassa was capital of the former Sidamo Province from about 1978 until the province was
abolished with the adoption of the 1995 Constitution. It then became the capital of the Southern
Nations, Nationalities, and Peoples' Region. When the Sidama Region was formed in June 2020,
the city became part of that region. Hawassa currently serves as the capital of the Sidama Region
and the Southern Nations, Nationalities, and Peoples' Region. Hawassa will continue to serve as
the seat of government of the Southern Nations, Nationalities, and Peoples' Region for two
national electoral cycles, after which the regional government will move to a city within the
region's boundaries.
Hawassa has a total area of 157.2 sq.km divided into Eight (8) sub cities divided into 32 Kebeles.
These Eight sub cities are Hayek Dare, Menehariya, Tabore, Misrak, BahileAdarash, Addis
Ketema, Hawela Tula and Mehalketema sub city.
The mean annual precipitation is 933.4 mm. Temperatures vary between 5C in winter and 34C
in summer. The city experiences sub humid-called 'WoyinaDega' type of climate. It has the
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highest and lowest temperature of 340 c and 3o c respectively. The average annual temperature is
20.3o c. Hawassa gets rainfall twice in a year. It falls during 'Belg' and 'Kiremt' (winter… rainy
season). The first rainfall falls from 'Megabit' to the mid of 'Ginbot' (May) and the next comes
from 'Sene' (June) to the mid of ‘Meskerem’(September). Due to the city‘s location in the Great
Rift Valley on the shore of rift valley Lake Hawassa, its weather condition changes dramatically
from day to night.
Based on the 2007 Census conducted by the Central Statistical Agency of Ethiopia, this zone has
a total population of 258,808, of whom 133,123 are men and 125,685 women. While 157,879 or
61% are living in the city of Hawassa, the rest of the population of this zone is living in
surrounding rural kebeles. A total of 61,279 households were counted in this zone, which results
in an average of 4.22 persons to a household, and 57,469 housing units.
Hawassa Industrial Park (HIP) is situated on the outskirts of the city flanked by the picturesque
Rift Valley Lake Hawassa. The park that got 18 leading global apparel and textile companies by
the end of 2017 was inaugurated by Prime Minister Haile Mariam Dessalegn on 20 June 2017.
Construction of the park is led by Industrial Parks Development Corporation (IPDC), The park is
the first in its kind in the country, consumed more than US$250 million and was built in a time
of less than one year. The zone implements Zero Liquid Discharge (ZLD) that enables to recycle
90 percent of sewerage disposal water and fulfills international standards. Covering an area of
1,300,000 m2
(14,000,000 sq ft), of which 300,000 m2
(3,200,000 sq ft) is factory shed build-up
area, the park have additional area allocated for shared facilities.
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Figure 3.1 Map of Hawassa city (https://en.wikipedia.org/wiki/Hawassa)
3.2 Data types, Sources and Method of Data Collection
Both primary and secondary data were used to conduct this study. Primary data was collected
from various value chain actors though closed ended questionnaires. The close ended
questionnaire was distributed to respondents; (1) individuals who directly engaged in weaving
production activities and traditional cloth producer, (2) people involved in supplying the final
product to the consumers, and (3) consumers or purchasers of a final product for the sole purpose
of consumption with no intention for further reselling.
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3.3 Sample Size Determination and Sampling Technique
Regarding sample size, 17 traditional fabric and cloth producers SMEs, 6 traditional fabric only
producers SMEs, 2 industries company from Hawassa industry Parks (HIP) and 10 consumers
were arbitrarily determined as samples for this particular study duet to time and budgetary
constraints. The researchers use random sampling and purposely sampling technics. The total
number of producers and processors had been collected from Sidama region specifically,
Hawassa town, Morocho, Yirgalem, Aleta Wondo Small Scale Enterprise and Hawassa industry
Parks (HIP). The total sample size is 35 MSE’s. This leads us the to build the confidence while
taking the smaller and manageable size of the sample.
3.4 Research Design
This research is both qualitative and quantitative research. This is because of the researcher use
narrative approach and percent’s based on schedules, figures and diagrams. The major data
collection tool used in the study is questionnaire survey. Other sources like unpublished
documents of governmental offices extensively used.
3.5 Data Analaysis
Both qualitative & quantitative data collected through various methods were analyzed by using
descriptive method of data analysis. The collected data from both sources were analyzed by
using value chain analysis approach. Value chain map was used to depict the traditional cloth
production value chain in Ethiopia explicitly. After collection of data from interview and desk
study, the analysis is done by value chain analysis. Stakeholder matrix was used to show the role
of chain supporters take part in the traditional cloth value chain. Chain mapping is used to show
the value chain of traditional cloth production in the country. In addition, a comparative analysis
of the AS-IS value chain and the benchmark value chain of traditional cloth production had been
undertaken.
3.6 Selection of value Chain
Traditional clothing production Value chain selection according to the process of prioritizing
sectors, industries or value chains based on criteria including their potential for growth and
competitiveness, impact, and contribution to other development objectives such as MSEs
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development, Youth, women’s empowerment, food security or natural resource management.
Therefore, the value chain selection includes the following criteria but not limited.
A. GTP Priority Sectors
GROWTH AND TRANSFORMATION PLAN (GTP)
PRIORITY SECTORS
1 Agriculture 4.2 Road Transport
2 Industry development 4.3 Shipping Transport
2.1 Textile and Garment 4.4 Air Transport
2.2 Leather Industry 4.5 Energy
2.3 Sugar 4.6 Water and Irrigation
2.4 Cement 4.7 Telecommunication
2.5 Metal Engineering 4.8 Urban Development
2.6 Chemical 5. Trade
2.7 Agro Processing 6. Health
3 Mining 7. Culture, Tourism, Sport
4 Economy and infrastructure 8. Social
4.1 Rail Transport
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Table 3.1 value chain selection criteria
VALUE CHAIN SELECTION CRITERIA
No CRITERIA
MEN’S SUIT OVER ALL TRADITIONAL
CLOTH
5 4 3 2 1 5 4 3 2 1 5 4 3 2 1
1 Size of Sub sector
This is focus given to a subsector
in enhancing the employment
opportunity, GDP share in the
economy and the market share.
X X X
2 Employment
For countries like Ethiopia,
unemployment is a critical
problem. The selected value chain
will create a considerable amount
of job opportunities and absorb
unemployed labor force. Thus,
beyond supplying of quality
products a value chain expected to
reduce unemployment.
X X X
3 GDP Share
An Economic development of a
country is the total sum of GDP
shares for every product/subsector.
A product that has a greater GDP
share in an economy is more likely
to create jobs and alleviate
poverty. A selected value chain
should be those
products/subsectors with a
relatively higher share of national
GDP
X X X
4 Market Share
If a product is not competitive in
quality and price on the market to
satisfy customer requirements it no
longer exists in the market. So the
value chain we are in a position to
develop should have a sustainable
X X X
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and significant market share.
5 Share of Export
Shares of the product/subsector
from the country`s total export of
goods and services.
X X X
6 Growth Potential
The mathematical probability that
a business will become larger.
X X X
7 Market Potential
The estimated total sales revenue
of all suppliers of a product in a
market during a certain period, for
both domestic and export scenario.
X X X
8 Factor Condition (human,
material, knowledge, capital,
infrastructure)
Other condition factors related
with human resources, the
accessibility of the materials,
knowledge imposed, amount of
capital and infrastructure in
producing the product and services
should be considered in selection
of value chain development.
X X X
9 Product Diversification
Enterprise is expanding
opportunities through
additional market potential of an
existing product. Achieved by
entering into
additional markets and/or pricing
strategies.
X X X
10 Potential impact to MSE
Promotes the establishment of
MSEs by creating jobs, and
strengthening the linkages with
large industries
X X X
11 Conservation importance
A production of environment
friendly product and services,
business operation with the most
X X X
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According to the above criteria the highest rank is for Traditional clothe production
therefore our value chain title is Traditional cloth production
consideration of the environment
and natural resources
12 Women Empowerment
Women's empowerment, referring
to the empowerment of women in
our present society, has become a
significant topic of discussion in
regards to development. Equal
rights for men and women as a
basic human right is given great
considerations. The value chain
that we are going to select should
consider gender equal opportunity
X X X
TOTAL RATING: 43% 30% 49%
Ranking 2nd 3rd 1st
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CHAPTER FOUR: DATA ANALAYSIS
4.1 EXISTING VALUE CHAIN (MAJOR SURVEY FINDING)
In this section, the major survey finding of the field study on traditional clothing manufactures
SMEs are analyzed AS IS as follows:-
1. What types of product do you produce? your answer /response to the question - it has been
identified as Netella, cultural dress, Gabi, men’s suits, table cloths, scarf, bed sheet and
various traditional costumes….etc.
2. Where do you get the input materials to make the fabric? According to the gathering data,
most of the enterprises responded by buying and selling from Addis Ababa, Hawassa, Arba
Minch, and Shashemene from private traders. But/However, it can be deduced from
gathering data, Abeba knitted and woven manufacturing enterprise will import directly from
china.
3. What type yarn or thread or yarn do you use to make traditional costumes? Your response to
the question, from the listed yarn they use 62.5%natural fiber and they also use 32.5% of
natural and man-made fiber. As a result, the evidence shows that the supply raw material is
mostly domestic.
Figure 4.1 Input materials used for making traditional costumes
Natura fiber
62%
man made
fiber
38%
inorganic
fiber
0%
Respondant (SMEs)
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4. How to control the quality of a product or yarn in the production process? Answer to the
question asked, the document shows that you will have quality control by visual inspection
and experience.
5. Does the have quality measurement criteria? Answer to the question asked, they do not use
any quality measurement criteria during production of fabric /apparel products.
6. When they are measuring the quality? Answer to the question the evidence suggest that the
data gathering the most enterprise measure the quality of fabric and apparel product only
though traditional methods and visual inspection fabric or evidence suggests that the
quality of textile and garment product for most enterprise is measured by traditional methods
and inspection
7. What type of fabric does the company produce? Answer in response to the question, the
majority of respondents reported producing 90% woven fabric, but 10% knitted fabric. Based
on this, the data collected and graph 1.2 analyses shows that there is no enterprise producing
Non-woven and coated fabric in the Sidama region graph 1.2 analyses.
8. Which type of cutting method they are using? Answer to the question, we do not use any
fabric cutting machine.
9. Explain the company’s work flow process from input materials to end products (fabric)?
Answer in response to the question, we do not have any official work flow process but you
know if by experience. For example :- First prepared warp and weft yarn warping process,
prim winding, warping yarn /thread weaving is mounted on the weaving machine and final
finishing (by visual inspection apparel traditional cloth sewing work flow processes.
90%
10%
0%
0%
Respondant (SMEs)
Woven fabric Knitted fabric Non Woven fafric Coated fabric
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Take a body measurements from the clients Cut the fabric by marking it on the fabric
Sewing the garment part with over lock Most say that hiring and Ironing should be the key,
and that the decision will depend on the expert.
10. Do you the company use modern and old machineries to make fabric and apparel?
Responding to questions, He said most enterprise do not have complete & up dated /weaving
and apparel sewing machine. The machine supply for each enterprise is show in the table
below.
11.Is it possible to have enough trained manpower in the market? The response will be the lack
of man power in textile and garment sub sector.
12.Is your company employed by a trained work force (including certified professionals and
above)? Their answer was, according to gathered data the MSEs recruiting experienced
professional .the gathered data shows that most MSEs Members do not have professional
certificates.
13.Where do you get the source of trained manpower? When we ask MESs managers, then they
answer that mostly the source of trained man power from TVET institute.
14. Do you have skill GAP in you is filed of association/ enterprise? to the question asked,
Majority MSEs Want to be trained which means skill technology coping and production
capacity building. For List any gap on your technical staff, to maximize productivity based
skill, knowledge, Attitude and using of new technology.
15.What strategies do you use to recycle and disposal? According to document, the waste will
be disposed of by selling it to matters, sofa and pillows and there will be no pollution. Some
enterprises enterprise say they do not use.
16.How do you deliver your product to the customer? Answer data shows that inflation,
shortage of input and inadequate quality of resource due to exchange rate fluctuations, lake
of market linkages, lack of skilled man power, lack of infructure and other current factors
may have an impact on the sectors growth.
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Table 4.1 Types and quantity of the machinery used by traditional weaving enterprises.
No Enterprise Name Types And Quantity of the Weaving Enterprises Machinery
Warping m/c Prin Winding m/c Weaving m/c Fabric quality
inspection m/c
Shuttle and Pirn
Type Qty Type Qty Type Qty Type Qty Type Qty
1 Tsehaye Weaving Enterprise Old way 4 Manual m/c 2 Manual m/c 20 ---- --- Wood 40
2 Peneale Weaving Enterprise »»» 1 »»» 1 »»» 5 ---- --- »»» 12
3 GonfaWeaving Enterprise »»» 2 Manual m/c 1 »»» 5 ---- --- »»» 14
4 ZetsateWeaving Enterprise Old way 1 »»» 1 Manual m/c 4 ---- --- Wood 10
5 GamoWeaving Enterprise »»» 2 »»» 1 »»» 16 ---- --- »»» 44
6 Abeba K/n Weaving Enterprise »»» 2 »»» 2 »»» 4 ---- --- »»» 16
44. Sidama National Region State Job, Skill And Enterprise Development Burea
Extended Traditional value chain analaysis 35
17. In what way do you promote your product to the customer? Promotion method. For
example brusher, banner, and other enterprise we use promoting our production, business
card, and media.
In general, the strategic issues observed in the textile and apparel sector of
the micro and small enterprise are summarized as follow
Low awareness customer handling ,vision and planning of activities
Limitation of stakeholder support
The problem of market linkage
The problem of not priroizting COC available enterprise during bianding
Low public participate enterprise production
The enterprise lack of readiness to move beyond traditional practices,
Same of enterprise externalize problems rather than finding of solution
Expecting from governmental body
Low awareness on maximization of profit
Lack Recycling and reuse
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4.2 MAPPING OF VALUE CHAIN ACTIVITY
4.2.1. AS IS / Existing Traditional clothing production value chain /Mapping/
According to the data obtained during the field study, most of the traditional clothing enterprises
will produce their product described below. Figure: Traditional Clothe Production As Is Value
Chain.
Figure 4.1 Traditional Cloth Production AS IS Value Chain.
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Bench mark selection
Individuals in a few countries around the globe hold their cultural traditions very close to their
hearts. These individuals prefer wearing their traditional attires, eating traditional food, and
living a simplistic life.
1. India – Saris and Dhotis. India is famous for its diversity. It is the home to a vast number of
cultures and traditions.
2. Bhutan – Gho and Kira. The Bhutanese dresses Gho for men and Kira for women are
extremely popular in the country.
3. Faroe Islands – Sweater Vests. Sweater vests used to be an outdated design that went out of
fashion in the early 2000s.
4. China – Mosuo and Hmong Dresses, Mosuo and Hmong are popular ethnic groups in China.
5. Indonesia – An Outfit Comprised of the Blouse, Brooch, and Sarong. Tourism is one of the
biggest contributors to the Indonesian economy.
6. United States – Flannels, Knickerbockers, Amish and Mennonite Traditional Outfits
7. Kenya – Kanga. Most of the African continent is a mysterious place. Western culture and
modern technologies have not penetrated this continent yet.
In 2019, Indian exported 1.955 billion U.S dollars’ worth of woven cotton fabrics and cloth to
the rest of the world. From this Indian is the thread largest exporter country in world.
(M.Shahbandeh, 2021) . Source; - www.statista.com
Figure 4.2 leading exporters of woven cotton fabrics and cloths worldwide 2019.
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Although India is the world leading exporter of woven cotton fabrics and cloth, it is important to
compare external and internal influence to choose the best experience for our products.
1. Manpower productivity
Manpower productivity observation in terms of manpower efficiency, various studies show that
India is second only to 92% and data shows that we very low in terms of manpower productivity
in our country. It can be seen from graph that India can be a better experience for our country.
Sources: USAID, Interviews, McKinney.
2. Labor cost of apparel sewing workers
Employees of Ethiopian garment factories, who work for brands such as Guess, H&M or Calvin
Klein, receive a monthly salary of 26 dollars per month. These very low wages have led to low
productivity, frequent strikes and high turnover. Some factories have replaced all their
employees on average every 12 months, according to the 2019 report of the Stern Centre for
Business and Human Rights at New York University (Fraser, 2019).
Figure 4.3 monthly minimum wages in the global garment industry.
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A report by the new work university stern center for business and human right analyzed the
situation with a specific focus on Africans faster growing economy Ethiopian. In rush to attract
foreign investment, Ethiopian has promoted the lowest base wage in garments producing country
just $26 a month but worker in the textile and apparel are paid a minimum of $280 a month
while in India (Richter, 2019).
3. World unit value cost comparison
Sources; UNSD (2015), unit value based on number of items,
Figure 4.4 global sales prices of a products
4. Infrastructure development
Facility
development ,
2.12
0
0.5
1
1.5
2
2.5
3
3.5
4
China India Vetinam Banigladish Ethiopian
Facility Development
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Figure 4.5 Infrastructure developments for various countries the source of world global 2016.
NO CRITERIA India Kenya Turkey Remark
5 4 3 2 1 5 4 3 2 1 5 4 3 2 1
1 Quality X X X
2 production/yield X X X
3 Cost X X X
4 level of technology X X X
5 Skill X X X
6 employment/ labor
intensive
X X X
7 Environmental issues X X X
Total Rating: 28 20 23
Comments: According to the above criteria the highest rank is for India therefore our
benchmark is India traditional industry
Table 4.3 Benchmarking Criteria Checklist
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4.3.1. Traditional clothing production (TO BE) India
Figure 4.6 Traditional Cloth Production TO BE Value Chain.
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4.3 Value Chain Analysis
Value Analysis of Traditional clothe production is used to analyze the value of each activities
and how it is undertaken in existing situation (AS IS) with respect benchmark selected in this
manual. It is used to analyze both qualitative and quantitative background information for
activities to be analyzed. Sources of information used for this analysis surveys from our target
groups, secondary data, published or unpublished literature. A major goal of analyzing is to
identify any “bottlenecks” in the value chain
4.3.1 AI IS Traditional clothing production value chain analysis /Hawassa/
Table 4.3 AI IS Traditional clothing production value chain analysis
INPUT
Function Problem
Farm site
Cotton seeds
Tools and equipment
Fertilizer
Pesticide
Shortage of inputs( cotton seeds, fertilizers, pesticides , etc
Shortage of improved seed varieties
Absence of extension services
Do not use advanced machinery, Example farm land
preparation machine, soil testing kit, culivators, rotary tile
COTTON PRODUCTION
Function Problem
Land preparation
Seed sewing
Weeding
Fertilizing
Pest and disease
Harvesting
Poor agricultural practices
Limited irrigation practices
Improper utilization of agricultural land for cotton crop
cultivation
Only use urea and dap
Harvesting of cotton is done by hands picking with the
helps of seasonal workers.
Harvesting done traditionaly with handpicked in three
round.
Lack of Finance
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GINNING
Function Problem
Bale cotton preparation for
ginning process.
Cotton fiber ginning
Ginning done by hands from this reason less productivity
and remain trash on the bale of fibers.
Lack of ginning machine due to this productivity 60 % of
less with to be,
TEXTILE PRODUCTION
Function Problem
Yarn spinning process
Weaving process done
Fabric finishing
Fabric dyeing and printing
Marketing
Yarn spinning methods by traditional ways due to this less
productive comparing with semi automated spinning
machine.
Does not have absorbance tester, color detector and Does
not have thread breakage resistance tester, count tester.
For warping process 25m space they use to warp the
thread .that means wastage of time and force by movement
and Yarn brepackage and wastage happened.
Highly warp yarns breakage during weaving process Due
to sizing material and process.
Spool wind by traditional Pirn winder machine and by
traditional ways due to this not productive and not save in
ergonomically.
Decrees productivity by the reason of Pirn winding.
Two shaft weaving machine is Less productivity,
minimum design possibility, poor product quality and time
consume.
Weaving design is did not have standardized design and
Does not use design section tool.
Weaving made by traditionally. To this reason have less
productivity, minimize design possibility, and minimize
product quality. Time consume thread, does not have hook
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to insert the thread in weaving machine.
Fabric printing and dyeing process is traditional methods.
Quality control systems is not standard quality criteria list
check by their work experience.
Lack of market linkage
There is not used cost analysis method (Estimate sales
price by guessing or by using traditional methods).
GARMENT PRODUCTION
Function Problem
Fabric selections depend on
customer orders.
Fabric selections depend on
customer orders.
Take body measurements
Marking process(pattern
making)
Fabric cutting fabric and fabric
cutting tools and machinery
prepared.
Sewing /garment part
assembling
Finishing
Quality control
There is no fabric selection criteria and don’t use fabric
inspection mechanism.
Designing is obtained from Pictures and Direct copy from
the garment and Don’t use design analysis method.
Dose not used standard body mesurement methods due to
this the body measurements dosnt accurate measurement.
Dose not makes a Sample.
Lack of skill to prepare pattern
Fabric scissors used Fabric cutting & manual spreading
table
Single needle lock stitch,3 thread over lock machine and
domestic embroidery machine.
Decrease the quality of garment by using standard out
cutting table due to this Decrease productivity and quality
of product.
Do not have enough display dummy
There is not standard quality criteria list check by their
work experience.
Dose not make pattern grading
There is not used spreading machine Decrease the quality
of garment by using standard out cutting table.
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Cutting part is not smooth and dose not cut numbers of
layers.
Lack of skill about garment part assebliling and Don’t use
specialized sewing machine.
Lack of awareness about production process flow chart and
Don’t use sewing machine attachments
Poor button hole and button attaching
Poor product quality
There is not used packaging method.
Lack of awareness about quality
Different quality standards Not yet practiced
Not prepare organizational quality control cheek list
FINAL FINISHING
Function Problem
Final finishing (button
attaching, button hole, hem
inning, and ironing process
done.
Poor button hole and button attaching quality
Poor product quality
There is not used packaging method.
Lack of awareness about quality
Different quality standards Not yet practiced
Not prepare organizational quality control cheek list
MARKETING
Function Problem
Product display by using
plastic dummy.
Performing sales
Product packing.
Lack of awareness about online marketing.
Prodct desipley dummy not avalable in local markets
Traditional sles and marketing methods used
There is not used packaging method.
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4.3.2 TO BE Traditional clothing value chain analysis of (Bench Mark)
After taking a closer look at the value chain of our country traditional clothing production
process, many studies have been conducted to find a country that could be the best experience
/bench mark for our country. The Ethiopian traditional dress is closely related to the Indian
Salwar dress, which produces 20 meter in two days in Indian Barpalli Ika Weaving Cluster. But
in Ethiopian a 15 meter art weaving projects will be completed in three days to complete single
traditional dress. According to federal MSEs bureau, we can produce 4 – 6 meters of dress
fabrics a day.
Figure 4.6 Saris and Dhotis cultural dress in Indian
In puts and cotton production
Seeds - High Yielding Varieties (HYV) developed by NSL are being given to farmers at reasonable cost under
PPPIAD project.
Soil testing: Cotton growing farmers under PPPIAD programme are trained about the benefits of soil testing and the
right method of collecting samples from their fields for testing.
Micronutrients: Under PPPIAD programme cotton growing farmers were trained for integrated nutrient
management practice.
Encouraging farmers to adopt high density planting system (HDPS): HDPS aims to maximize productivity per
unit area. In India, traditionally cotton was sown in lines with distance between rows ranged from 30 to 60 cm.
Capacity Building: Farmer training programmes are organized for farmers at different crop stages.
Before sowing - Under this training programme, the farmers WERE trained for sowing techniques for HDPS,
fertilizer management, FYM management and water management.
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Integrated pest management - Under this, the farmers WERE being educated about the use of plant growth
regulators, integrated pest management and application of secondary fertilizer dosage.
Before harvesting – Farmers were trained about the harvesting techniques, storage and management, bales
management, ginning and processing technologies
After harvesting – Farmers were educated about the marketing knowledge, farmer group formation, use of
marketed related information and value addition.
Ginning: The cotton growing farmers under PPPIAD programme were explained about benefits of ginning. Assured
market and better price encouraged farmers to sell their produce at ginning mills.
Baling/ Packaging:
Farmers under PPPIAD project were encouraged to convert cotton into bales. Bale formation helped farmers in
storing produce for longer duration in addition to maintaining fibre quality. This helped farmers fetch better price for
their produce in market. Note: Cotton is packaged, stored and transported in units called bales.
TEXTILE PRODUCTION
Semi-automated spinning machine –Spinning machines spin substances like cotton into a
piece of yarn or thread. The yarn or thread can then be weaved or knitted together to create a
piece of fabric.
Scutching Machines - used to separate cotton seeds from the cotton
Warping machine – warping preparation is a crucial step for fabric formation. Hi – tech
fabric is forming solution enable high speed, cost effective production highest reliability for
efficiency, quality, productivity and flexibility of your weaving mill both in standard fabrics
and technical woven fabrics.
18 spindle Pirn winding machine – used to wind thread onto spools
Semi-automated weaving machine – used to weave thread (weft and warp tread), such as a
loom.
Knitting machine - knitting machines use needles to pull yarn through hoops to create
stitches that hold it together.
Fabric inspection machine
GINNING PROCESS
Cotton gin - Cotton is one of the primary fabrics utilized in the textile industry. This means there
needs to be an efficient machine that can separate the cotton fibers from the cotton seed. The
cotton gin is responsible for not only completing the separation process, but also removes stems,
leaves, and other dirty matter from the cotton.
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TEXTILE PRODUCTION
Spinning process - Before a thread can be woven together, you have to create the thread
through spinning.
Warping process - is to convert the yarn package into a warping beam having desired width
and containing requisite number of en
Weaving - The loom can weave threads that are one color or can weave multiple colors to
create a pattern or design. There are three common weaves a loom performs, and they
include the plain weave, satin weave, and twill.
Knitting process - Thread or yarn that is not weaved together, is often knitted together. Much
like the hand process of knitting,
Fabric inspection - There are internationally accepted systems of fabric inspection which
define the way the fabric is to be inspected and what constitutes an “OK” fabric. In all the
systems, the fault or defect is assigned points based on its size, type, spread etc. by using
fabric inspection machine.
GARMENT PRODUCTION
Based on the Indian apparel industry, garment manufacturing processes are categorized as
Pre-Production Processes - The pre-production process includes sampling, sourcing of raw
materials, Approvals, PP meetings, etc. Read this for further reading on pre-production
processes.
Production processes - Production processes are cutting, sewing, quality checking, etc.
Post-production processes - thread trimming, pressing, checking, folding and packing,
shipment inspection, etc.
Instead of making a single process flow chart, I have made one chart for major processes and two
separate charts for cutting room processes, and finishing processes for detailed process charts
(Sarkar, 2013).
PATTERN DESIGN TOOLS
- They use sketch paper and block paper to produce pattern design. In addition, computer CAD
software and plotter machine is used by the Indian traditional clothing industries for pattern
design.
FABRIC CUTTING MACHINE
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- They use a circular /round knife and straight knife cutting machine. This is a types of machine
that can cut larger quantities of the fabric in a short period of time and is high efficient.
SEWING AND PATTERN DESIGN MACHINES
Sewing and design machine used by the Indian traditional cloth manufacturer industries.
Digital zigzag/ embroidery – it is used to make zigzag or embroidery deigns.
Industrial 5thread over lock machine – used to cut edge
Double needle sewing machine – when needed to makes two parallel stitch
Flat lock – they use it to sew off the last part of the garment or apparel
Button attaching- used for different type button attach or fabric covers
Industrial button hole – used for button hole
Kansai sewing machine – it is the sewing machine used for folding fabric.
Single needle lock stich machine – it is used to make any sewing purposes
Digitizer – they use the design of the apparel from the silent to computer to increase or
decrease it to the desired size.
Digital embroidery – used as embroidery design on the fabric surface
Computer & CAD software and plotter
Fabric laying and cutting machine
Draping dummy is used for clothing design
Display dummy is used for apparel/cloth display and hanger.
STANDARD BODY MEASUREMENT CHART
Standard body chart is required for sales products that does not required human measurements
and is manufactured.
GARMENT QUALITY CONTROL
Quality Control System is followed by all concerned in the company from piece goods
inspection to the final statistical audit.
(1) Piece goods quality control: On receipt of fabrics in the ware house, at least 10% are
inspection as per “4 Points” system/10 Points system/2.5 Point system/6.0 Point system. The
most commonly used 4 Points system as per below –
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Size of Defect Penalty
3 Inches or less 1 Point
Over 3, under 6 Inches 2 Point
Over 6, under 9 Inches 3 Point
Over 9 Inches 4 Point
A maximum of 4 points are changed in one linear yard.
(2) Cutting quality control: In cutting section quality is insure in two stages.
a) Spreading quality control: Following the point are checked during spreading
I. Table marking.
II. Ends
III. Tension
IV. Leaning
V. Narrow Goods
VI. Counts
VI. Ply height
VII. Remnants
VIII. Fabric flaws
IX. Market placi
b) After cutting quality control: After each cutting blocks and bundles are checks on the
following points.
I. Mis cut
II. Ragged cutting
III. Pattern checks
IV. Matching Plies
V. Notch
In Process Quality Control (Sewing): During the swing “In process quality control” is done by
the line QC’s through 7 pcs inspection system. For critical operations system. For critical
operations 100% process inspection are carried out.
The following parameters are also checked in sewing process –
a) Machine check.
b) Tension.
c) SPI checks
d) Needle check.
e) Cleanness.
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d) Table inspection.
f) Inspection before wash.
QMS (Quality Management System) “A set of co-ordinated activities to direct and control an
organization in order to continually improve the effectiveness and efficiency of its performance.”
Each Quality management systems (TQM, ISO etc) and its elements (Statistical process control,
(SPC), Kaizen, Advance product quality planning and control (APQP), have a distinctive
applicability. It is necessary that the approach selected suits current and future needs of the
organization. SPC works towards bringing process under the influence of common causes alone
by identifying & eliminating assignable causes. APQP focuses mainly on new product
development/project execution. ISO 9000 currently includes three quality standards (ISO
9000:2005, ISO 9001:2000, and ISO 9004:2000). Labor intensive industry like apparel can
achieve full benefit of QMS only if every individual (Operators and Managers alike) contribute
in its implementation (Rahman, 2016).
“Each Quality management systems (TQM, ISO etc) and its elements (Statistical process
control, (SPC), Kaizen, Advance product quality planning and control (APQP), have a distinctive
applicability in Indian garment industry.”
Product promotion- We found nineteen strategies they used. They are: Advertise on radio and
TV, Place an advertising in the newspaper and magazine, Advertise on the Internet, Create a
brochure and poster, Create a billboard, Advertising into an advertising tabloid, Organize a
discount program, Create Publicity in television, Opening a stand at various events, Make
bulletin clothing, Create a website, Create social media and Become a sponsor in an event.
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4.4 Gap between AS IS and Bench Mark
Figure 4.4 Gap between AS IS and Bench Mark
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4.5 Comparative analysis of AS Is and Bench Mark (TO BE)
The process of analyzing the Value chain activities is according to the four parameters (Yield, Quality, Cost and Time) to identify the Gaps
between AS IS compared to the Benchmark.
The four parameters defined as flows:
Yield – refers to level or number of output acquired
Quality – refers to the level of standard applied
Cost – refers to the amount of money allotted in a specific activities
Time – refers to the specific duration, time limitation in performing the activities
Table 4.5 Comparative Analysis of Traditional Cloth Production Value Chain
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Value Chain Yield / Return Quality Cost Time
Input As Is To Be As Is To Be As Is To Be As Is To Be
Cotton and thread 1.7 tons/
hectares
459kgs/hectar
e
Mostly 27mm to
28.3mm grade B
30mm to
32mm grade
A
$1.47/kg Rs100/kg Cultivation
6 to 8 month
Cultivation
6 month
spindle Manual
m/c 16%
Semi-
automatic
Yield up to
84%
Low yarn quality Fine yarn
quality
250 ETB Rs 140000 4kg/8hr 75kg/8hr
Warping machine Productivit
y low
Productivity
high
Very low quality Very high
quality
300 ETB 35 lakh 300m/hour 600m/minu
Semi-automatic
weaving m/c
30m/7day 7 set a week Minimum quality Best quality 1200ETB US$8300 30m/7day 7 set a
week
Circular cutting
machine
20% of
productivit
y
80% of
productivity
Fabric edge
quality is low
Fabric edge
quality is
high
150 birr US$40 Take more
time
Take less
time
Fabric inspection
machine
Visually
inspection
50m/minute Very low quality Very high
quality
No cost 4.5 Lakh Take along
time
Take a long
time
Button attaching
machine
Yield 14% Yield 86% No quality Accurate
quality
1birr for
needle
US$350 For 1 button
take 5minu
For 1
button take
1minu
Display /draping
dummy
Maximize
pattern
Reduce
pattern
Low quality High quality 3500birr US $300 2minut 5minut