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    JUTEMILL

    UPGRADATION

    FOR

    HIGHERPRODUCTIVITYAStudyJointlyCarriedOutby

    CentreforPolicyDialogue(CPD)andDepartmentofMechanicalEngineering,BUET

    inAssociationwithKatalyst

    CENTRE FOR POLICY DIALOGUE (CPD)B A N G L A D E S H

    a c i v i l s o c i e t y think t a n k

    31December2011

    Presentation of the

    Centre for Policy Dialogue (CPD)

    by

    DrK.G.Moazzem

    SeniorResearchFellow

    CentreforPolicyDialogue(CPD)

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    CPDStudyTeam

    DrKhondaker Golam Moazzem

    Senior

    Research

    Fellow,

    CPDKishore Kumer Basak

    ResearchAssociate,CPD

    Md Tariqur Rahman

    Senior

    Research

    Associate,

    CPD

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    Acknowledgment

    Thestudy

    team

    would

    like

    to

    register

    their

    deep

    appreciation

    to

    ProfessorMustafizur RahmanExecutiveDirector,CPD

    DrDebapriya BhattacharyaDistinguished

    Fellow,

    CPD

    and

    Mr GoetzEbbeckeGeneralManager,Katalyst

    fortheir

    valuable

    inputs

    and

    suggestions

    for

    this

    study.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    4

    Contents

    1. Rationaleofthestudy

    2.

    Objectivesand

    methodology

    of

    the

    study

    3. Marketpotentialsforjutegoodsatlocalandinternationallevels

    4. Statusofjutemills:machines,workersandproductionProcesses

    5. Productivity

    and

    efficiency

    of

    sample

    jute

    mills6. Possiblegainthroughtechnologyupgradation

    7. Recommendations

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    1.RationaleoftheStudy Jute manufacturing sector has recently started to revitalize

    9 Rise in global demand for jute goods

    9 Environmentfriendly nature

    9 Price hike of petroleum products

    Recently, government has undertaken a number of policy measures

    9 Special mention of jute sector in the Industrial Policy 2010

    9 New Jute Policy 2011(which has been approved last week)

    9Special act Mandatory Use of Jute for Packaging Products Act 2010

    9 Decoding of the genetic sequence of jute fibers

    Jute manufacturing sector is facing a perennial problem, i.e. jute productsare usually less competitive

    9

    Alternate products: Cheap synthetic packaging products9 Alternate system: Inefficiency in bulkhandling and lack of diversity

    Strong policy support is required with a view to take out the sector from

    low level of competitiveness

    9 Major focus should be on improvement of productivity of jute mills.Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    2.ObjectivesandMethodologyoftheStudy

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    2.ObjectivesandMethodologyoftheStudy The

    study

    (CPD

    part)

    has

    following

    objectives

    9 Examinethemarketpotentialsofjutegoodsatlocalandinternational

    level;

    9 Investigatethecurrentstatusofjutemillsintermsofusemachinesand

    workers,working

    environment

    and

    production

    process;

    9 Analyse theproductivityandefficiencyofjutemillsandestimatingthe

    possiblegainsthroughimprovementofefficiencyinthesemills;

    9 Putforwardnecessarypolicysuggestionswithregardtoimprovement

    ofproductivity.

    Thestudyisbasedonthedatacollectedfromtensamplejutemills

    9 Bothspinningandcompositecategories

    9Mills

    are

    under

    the

    authority

    or

    membership

    of

    BJMC,

    BJMA

    and

    BJSA.

    Findingsofthestudyhavelimitationsintermsoftheirrobustinterpretations.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    3.MarketPotentialsforJuteGoods Productionofjuteproductshasbeenremainedinvariantoverthelastdecades

    9 InFY200910totalproductioncrossedthelevelof700thousandm.tons

    Productcompositionhasexperiencedaconsiderablechangeovertheyears

    9 Riseofshareofyarn(from31.3%to58.3%)

    Bangladeshsjuteindustryisoverwhelminglydependentonexportmarket

    9 Morethan85%isexported;crossedUS$1billionmarkonlyinlastfiscal

    BasicdifferenceinthemarketstructurewithIndia

    9 Indiaislargelydependentontheirdomesticmarket

    9 SignificantcontributionofIndiasdomesticpolicy

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    10

    0

    50

    100

    150

    200

    250

    300

    350

    400

    450

    '000MetricTo

    ns

    Hessian Sacking CBC

    Carpet Others Yarn(BJSA)

    0

    50

    100

    150

    200250

    300

    350

    400

    Export Local Export Local Export Local

    Hessian Sacking Yarn(BJSA)

    '000Metric

    tons

    200102 200405 200708 201011

    ProductionofJuteProducts:19952011 BangladeshExportand LocalConsumption

    Source:BJMC,BJMA,BJSA

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    3.MarketPotentialsforJuteGoods The Jute Substitutability Index value hover around 0.7 mark

    9 Indicates that major market share of packaging dominates by jute

    substitutes, i.e. polypropylene (PP) fabrics by 70%

    Since 2003 the index value has started to decline slowly indicating

    9 Falling demand for PP fabrics; Rising demand for jute products

    9 Recent export performance corroborates this change in the index value

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    0.6

    0.62

    0.64

    0.66

    0.68

    0.7

    0.72

    0.74

    0.76

    0.78

    0.8

    0.82

    1995

    1996

    1997

    1998

    1999

    2000

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    JuteSubstitutabilityIndex

    RevealedComparativeAdvantage (RCA)indices

    forall

    major

    Bangladeshi

    jute

    products

    are

    substantiallyhigherthan1

    9 Indicatetheirstrongcompetitivenessin

    theglobalmarket

    Foracountry

    like

    India,

    RCA

    analysis

    would

    notprovideagoodviewoncompetitiveness.

    9 RCAanalysisdoesnottakeintoaccount

    domesticproductionSource:AuthorscalculationbasedonUNCOMTRADEsdata

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    3.MarketPotentialsforJuteGoods Bangladesh

    has

    scope

    to

    increase

    the

    export

    by

    proper

    marketing

    strategy

    Bangladeshhasthepriceadvantageforjutemadecarpets

    9 PertonjutecarpetcostsUS$6,658forIndiawhereasitstandsatUS$3,594forBangladesh(Rahman andKhaled,2010)

    Turkish

    firms

    have

    taken

    interest

    to

    set

    up

    carpet

    factory

    in

    the

    EPZ.9 Largeamountofjuteislikelytobeusedthere.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    12

    HScode DescriptionBangladesh India

    2002 2006 2010 2002 2006 2010

    '530310 Juteandothertextilebast fibres,raworretted 616.9 945.2 574.7 1.5 0.8 19.0

    '530390 Juteandothertex bast fib,not spun,nes;tow andwasteoffibres 367.3 616.0 383.4 1.1 0.3 4.0

    '530710 Yarnofjuteorofothertextilebast fibres,single 1191.6 1710.8 689.3 18.3 6.5 8.9

    '530720 Yarnofjuteorofoth textilebast fibres,multiple (folded)orcabled 244.0 122.9 539.4 32.5 29.0 23.9

    '531010 Wovenfabricsofjuteorofothertextilebast fibres,unbleached 534.0 372.5 185.8 48.6 45.8 54.7

    '531090 Wovenfabricsofjuteorofothertextilebast fibres,o/t unbleached 159.4 588.7 103.1 4.1 2.6 22.4

    '560710 Twine,cordage,ropesandcables,ofjuteorothertextilebastfibres 902.9 966.2 58.8 10.2 19.3 3.7

    '570500 Carpetsandothertextilefloorcoverings,nes 0.6 2.9 0.1 31.6 33.5 9.1

    '630510 Sacks&

    bags,for packg of

    goods,of jute

    or

    of

    other

    textile

    bast fibres 1079.0 402.6 206.4 29.4 33.0 24.1

    RCAIndexofSelectedJuteItemsofBangladeshandIndia

    Source:AuthorscalculationbasedonUNCOMTRADEsdata

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    3.MarketPotentialsforJuteGoods

    On October, 2010, the National Parliament has approved a new act titled MandatoryUse of Jute for Packaging Products Act 2010

    9 In view of reducing the use of artificial packaging materials

    The most important commercial use as of now is in packaging of different kinds of

    agricultural products

    9 Rice, wheat, pulses, oil seeds, potato and sugar; jute sacks for packaging of cement

    Packaging of different kinds of processed consumer goods may be the next step to

    target.

    A large domestic market could be opened up with the enactment of the act

    9 The study has estimated that a total demand of 840 million jute bags in the initial

    year for packaging of selected agricultural and nonagricultural products.

    If a jute bag reuses for three times, then average yearly requirement would be

    280 million. This would require an additional production of raw jute of about

    180, 000 m. ton

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    13

    Aus Aman Boro Wheat Pulses Oilseeds Potato Sugar Cement Total (000)Production(000mt) 1709 12207 18341 969 221 377 8168 62.2 2877.2 42,054

    Jutebags(000) 34180 244140 366820 19380 4420 7540 163360 1244 57544 841,084Raw jute(000mt) 20.5 146.5 220.1 11.6 2.7 4.5 98.1 0.7 34.5 539

    Source:CPDestimatesbasedonthedataoftheMinistryof

    Foodandotherorganisations

    Projectionofrequiredjutebagsandrawjute

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    4.StatusofJuteMills:Machines,WorkersandProductionProcesses Technology used in jute manufacturing sector did not change much

    9 Most of the machines in jute mills are old and have passed the usual

    functional period.

    9 By proper maintenance and replacement of parts, these machines can

    perform as close to a new one.

    Low level of capacity utilisation is a challenge.

    9 Particularly in weaving section of composite mills

    9 Responsible for low capacity utilisation at backward and forward

    parts of the production chain.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    MillCategory Softening Carding Drawing Spinning Winding Beaming Weaving CalendaringSpinning 1.00 1.00 1.00 1.00 1.00

    0.75 0.58 0.75 0.45 0.75

    1.00 1.00 0.97 1.00 0.86

    0.50 1.00 1.00 1.00 0.91

    Composite 0.67 1.00 0.94 1.00 1.00 1.00 0.76 1.00

    1.00 1.00 1.00 0.94 1.00 1.00 0.92

    0.44 0.75 0.69 0.51 0.69 0.40 0.40 1.00

    0.75 0.88 0.76 0.76 0.80 0.38 0.42 0.33

    Public 1.00 0.94 1.00 0.99 0.94 0.48 0.53 0.67

    0.80 0.98 1.00 0.98 0.88 0.89 0.84 1.00

    SectionwisecapacityutilizationofMachines

    Source:EstimatesbasedonCPDsurvey,2011

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    4.StatusofJuteMills:Machines,WorkersandProductionProcesses

    There is no standard practice for the use of workers in different sections ofjute mills

    9 Standard deviation in the use of workers is estimated to be 22.6 in

    calendaring sections to as high as 376.3 in weaving sections

    Man

    machine ratio is not homogenous in all sections9 Widely varies in softening, winding and calendaring sections

    Manufacturing of jute goods is mostly skilloriented job.

    9 There is a scarcity of skilled workers

    Entrepreneurs should offer competitive wage to retain skill workers9 Average wage of an skilled jute worker is less than that of an agricultural

    worker (Tk.153/day visvis Tk.163/day)

    Female workers in skilloriented and labourious activities is not rare

    9Manufacturers should target appointing more female workers in allsections.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    Softening Carding Drawing Spinning Winding Beaming Weaving Calendaring

    BJSA 200 347 531 798 691

    BJMA 205 416 466 1153 574 323 3387 105

    BJMC 472 695 717 3165 1097 499 8384 378

    PerTonLabour CostinDifferentSections(Tk.)

    Source:EstimatesbasedonCPDsurvey,2011

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    4.StatusofJuteMills:Machines,WorkersandProductionProcesses

    Production environment in jute mills is found to be in diverse states9 Lack of proper maintenance of temperature, humidity and widespread

    dust available in the factory premise

    9 50% of sample factories maintain humidity level lower than as it is

    required.

    9 Particularly in the amount of time required, amount of output

    transferred and the distance passed for transferring outputs

    9Differences in ergonomic structure is appeared to be a major factor

    9 Diverse state also found in maintaining required space, machines and

    workers at backward and forward linkage activities.

    Lack of standardised use of machines and workers in different sections

    among jute mills are another reasons for variation in the level of production

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    0

    0.5

    1

    1.5

    2

    2.5

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    Spinning Composite(BJMA) Compos ite(BJMC)

    Spreading trav_quantity2

    00.511.522.533.5

    01020304050607080

    Spinning Composite(BJMA) Comp osite(BJMC)

    Softening tr av_ qu ant ity 1 S of te ni ng trav_distan1

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    0

    5

    10

    15

    20

    25

    Spinning Composite( BJ MA) C omp os it e(BJMC)

    Drawing trav_quantity4

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    0

    5

    10

    15

    20

    25

    30

    35

    Spinning Composite(BJMA) Composite(BJMC)

    Windingtrav_quantity6

    0

    0.5

    1

    1.5

    2

    2.5

    0

    10

    20

    30

    40

    50

    60

    70

    Spinning Composite(B JMA) Composite(BJMC)

    Weavingtrav_quantity8

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    0

    5

    10

    15

    20

    2530

    35

    Cardingtrav_quantity3 Cardingtrav_distan3

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Spinning Composite(BJMA) Composite(BJMC)

    Spinningtrav_quantity5

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Spinning Composite(BJMA) Comp osite(BJMC)

    Spinningtrav_quantity5

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    0

    10

    20

    30

    40

    50

    60

    70

    Spinnin g Composite( BJMA ) C om po site(BJMC)

    Calenderingtrav_quantity9Calenderingtrav_distan9

    4.StatusofJuteMills:Machines,WorkersandProductionProcesses

    Source:BasedonCPDsurvey,2011

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    4.StatusofJuteMills:Machines,WorkersandProductionProcesses 75%

    jute

    mills

    have

    godown facility

    which

    could

    stack

    only

    1/3rd

    of

    total

    yearlyrequirementofrawjute.

    9 Mostofthemillsprocure amajorshare ofrawjuteduringthepost

    harvestseasonstakingtheburdenofhigherpriceofrawjute(about30%

    higherduring

    2010).

    Costofrawjuteisthemostimportantcomponentinoverallcoststructure

    9 Accountedfor5080percentofthetotalcostofproductioninsample

    jutemills

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    19

    0.0

    10.0

    20.0

    30.0

    40.0

    50.0

    60.0

    70.0

    80.0

    90.0

    0

    10000

    20000

    30000

    40000

    50000

    60000

    70000

    80000

    90000

    1 2 4 5 9 10

    Spinning Composite

    (BJMA)

    Composite(BJMC)

    c_rawjute

    9 Riseofrawjutepriceinrecentyearshavesignificantlyincreaseditsproportionatesharein

    total

    cost

    of

    production

    Cost

    of

    raw

    jute

    percentage

    of

    per

    m.

    ton

    production

    cost

    Source:EstimatesbasedonCPDsurvey,2011

    Availabilityofrawjuteatamanageablepriceisessentialformaintainingcostcompetitiveness

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    4.StatusofJuteMills:Machines,WorkersandProductionProcesses

    Although

    machineries

    are

    regularly

    maintained

    according

    to

    the

    mill

    managements

    9 Howevertheiroverallperformancelevelcontradictsit.

    Workshopsobservedinsamplejutemillsarenotfoundtobeadequatewithfacilities

    9 Technicians,machines,

    tools,

    availability

    of

    raw

    materials

    etc.

    Expenditureonmaintenanceisusuallyconsideredasanadditionalburdentothemills.

    9 Eventhoughonlyabout45percentoftotalcostisattributedforthatpurpose

    9 Maintenancecost

    is

    about

    10

    15

    per

    cent

    in

    developed

    countries.

    Insteadoffollowingthepreventionmethodformaintenance,mostmillspracticebreakdownmethod.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    20

    0

    100

    200

    300

    400

    500

    Spinning Composite Public

    Maintenancecost(Tk.perton)

    Source:EstimatesbasedonCPDsurvey,2011

    Lackofavailabilityofspare

    partsis

    also

    amajor

    reason

    for

    lowcapacityutilisation.9 Localmanufacturingbase

    ofmachineriesandsparepartsisinadequate.

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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    5.ProductivityandEfficiencyofSampleJuteMills There are variations in productivity in different sections of different mills.

    9 One possible reason is the machines in all the mills are not run at full

    capacity.

    Productivity measurement in terms of manday/ton is lower for mills having

    a larger number of skilled worked force and use of suitable productionprocesses.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    22

    0

    10

    20

    30

    40

    50

    60

    70

    80

    man-day/ton

    Jute Mills

    Productivity index(man-day/ton)

    Weaved product Spinning product

    9 Properallocationoflabour andmachinescan

    reduceman

    day/ton

    productivity

    9 Itisessentialtoretainskilledworkforcefor

    betterproductivity

    Source:CPDBUETsurvey,2011

    Source:EstimatesbasedonCPDsurvey,2011

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    5.ProductivityandEfficiencyofSampleJuteMills UsingDataEnvelopmentAnalysisProgramme (DEAP)

    9Technicalefficiency

    (TE),

    allocative efficiency

    (AE)

    and

    cost

    efficiency

    (CE)

    of

    the

    samplemillshavebeenestimated

    Bothspinningandcompositejutemillsshouldimprovetheirallocative andmostimportantlycostefficiency.

    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    23

    MillCategory

    Softening Carding Drawing Spinning Winding Beaming Weaving Calendaring

    Spinning 0.615 0.646 0.752 1.000 0.821

    0.338 0.395 0.399 0.660 0.051

    1.000 1.000 1.000 0.975 1.0000.462 0.485 0.508 0.429 0.277

    Composite 0.656 0.470 0.560 0.447 0.537 0.889 0.754 0.457

    0.615 0.538 0.635 0.353 0.462 0.370 0.895

    0.328 0.323 0.451 0.417 0.328 0.593 0.573 0.229

    0.538 0.665 0.935 0.750 0.538 0.972 1.000 1.000

    Public 0.462 0.469 0.586 0.310 0.489 1.000 0.636 0.321

    0.320 0.195 0.259 0.179 0.320 0.361 0.317 0.786

    SectionwiseTechnicalEfficiencyofSampleMills

    TechnicalEfficiency

    AllocativeEfficiency

    CostEfficiency

    1.00 0.89 0.89

    0.41 0.34 0.14

    1.00 1.00 1.00

    0.52 0.83 0.44

    MillCategory TechnicalEfficiency

    AllocativeEfficiency

    CostEfficiency

    Composite 1.00 0.75 0.75

    1.00 1.00 1.00

    0.57 0.75 0.43

    1.00 0.84 0.84

    Public 0.99 0.64 0.64

    0.53 0.71 0.37

    TE,AEandCEofSampleSpinningMillsTE,

    AE

    and

    CE

    of

    Sample

    Composite

    Mills

    Source:EstimatesbasedonCPDsurvey,2011

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    6.PossibleGainthroughTechnologyUpgradation

    By improving machine capacity the possible gain in terms of improvement inproductivity are as follows:

    9 Softening section: 38 kg per machine per hour to 184 kg;

    9 Carding section: 549 kg;

    9 Drawing section: 230 kg;

    9 Spinning section: 1028 kg;

    9 Weaving section: 0.93.0 kg

    Possible saving of labour cost (Tk. per minute) in different sections are:

    9 Softening section: Tk.1.0Tk.2.9 per minute per machine;

    9 Drawing section: Tk.0.2Tk.0.7 for carding; Tk.0.2Tk.0.8;

    9 Spinning section: Tk.0.2Tk.1.3 ;

    9 Winding section: Tk.0.1Tk.2.1;

    9 Beaming section: Tk.0.9Tk.3.1;

    9 Weaving section: Tk.0.2Tk.0.5 ; and

    9 Calendaring section: Tk.0.8Tk.2.8.

    Proper balance of machines and workforce would result in significant cost cuts

    9 In nominal terms, it could be as high as Tk.537,000 in a year for a mill.

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    7.Recommendations A

    medium

    and

    long

    term

    work

    plan

    needs

    to

    be

    developed

    based

    on

    the

    followingrecommendations.

    Penetratethemarketpotentialsatdomesticandinternationallevels

    9 BangladeshandIndiaasthetwomajorjuteexportingcountriescan

    undertakejointinitiativetopromotejuteproductsatgloballevel.

    9 Thisinitiativeshouldincludecampaigning,policyinfluencing,

    collaborativeresearchonproductdevelopmentandmarketing.

    9International

    Jute

    Study

    Group

    (IJSG)

    should

    take

    a

    lead

    role

    in

    this

    case.9 MinistryofJuteandTextiles(MoJT)shouldimmediatelyfinalise theaction

    planfortheimplementationoftheMandatoryUseofJuteforPackaging

    ProductsAct2010.

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    7.Recommendations AdoptionoftheJutePolicy2011isawelcomeinitiative.

    Itisimportanttofinalise theactionplanbasedonthePolicy

    9 Withappropriatetimeframe,deliverablesandappropriateauthorities

    for

    implementing

    different

    targets9 TheTextileandJuteMinistrywillmonitoritsimplementationona

    regularbasis.

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    7.Recommendations

    Balancing the machineryuse to attain higher level of productivity

    9 A review of the existing production process, techniques and operational

    management of different sections of jute mills is urgently needed.

    9 Sectionwise monitoring of capacity utilization is highly important.

    It is also important to set up a team of experts under the auspices of BJMA

    BJSA and BJMC

    9 In order to provide technical support to the jute mills with regard to

    machines, working environment, size of workforce, machinereplacement and production process etc.

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    7.Recommendations

    Balancing workeruse, mobilization of new workers and improvement of

    labour productivity

    9 An assessment should be undertaken in different sections based on the

    standard practices of machineworker ratio for operations.

    9 Mill management should provide regular inhouse training and better

    salary to skilled workers including nonwage benefits.

    Mill management may consider employing female workers in all sections of

    jute mills.9 In this connection, the workplace should be more gendersensitive

    through appropriate sanitary, medical and housing facilities.

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    7.Recommendations

    Jutemills

    should

    target

    for

    further

    mechanization

    of

    production

    technologiesandprocesseswheneverpossible

    9 Examplesincludeuseofforkliftorjibcraneforstacking

    9 Conveyerbeltsinthesofteningsection

    9 Rollfeed

    breaker

    carding

    machine

    in

    the

    carding

    section

    9 Baxterflyerinthespinningframeandimprovedweavinglooms

    Improvementofknowledgebaseregardingfibre quality

    9 Apropertrainingisrequiredforthetechniciansandworkers

    9 Mainlyatthestagesofjuteprocurement,batchingandselection

    activities

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    Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

    327.Recommendations

    JibCraneForklift

    BaxterflyerRingspinning

    Flexiblerapierloom

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    7.Recommendations Improvementofmaintenancepractices

    9 Jutemillsshouldassesstheirexistingmaintenancepracticesparticularly

    avoidingofbreakdownbasedmaintenancepractices.

    9 Thisrequiresextratrainingtomakethestaffsandtechniciansconvinced

    tounderstandthechangesrequiredinthemaintenancepractices.

    9 Millmanagement

    should

    be

    ready

    to

    invest

    more

    in

    maintenance

    such

    ashavingafullyequippedandoperationalworkshopwithskilled

    technicians.

    RecentMoU signedbetweenGulfra Habib (BJMC)andLagan(India)has

    createdmuch

    attention.

    9 ItisimportanttoknowthetermsandconditionsoftheMoU particularly

    withregardtotechnologytransfer,profitsharing,marketingof

    machineriesandotherprioritiesetc.

    9The

    target

    should

    be

    to

    supply

    all

    kinds

    of

    machineries

    required

    for

    the

    jutemill.

    9 Improvementofmanagementpracticeswithrecruitmentofskilled

    professionalsshouldbeapriority.

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    7.Recommendations Developfactorylevelworkenvironmentandsocialcompliances

    9 Millmanagementshouldparticularlyputattentiontomaintainthe

    properlevelofhumidity,light,air,soundanddust.

    9 Necessarytrainingonthestandardpracticeoftheseaspectswillhelpto

    improve

    the

    production

    environment.9 Incollaborationwithprivatesectororganisations suchasNGOs

    necessaryfacilitiesshouldbedevelopedfortheworkersincluding

    dormitories,schools,clinicsandentertainmentfacilities.

    Targetingdynamic

    leadership

    for

    the

    jute

    sector

    9 Jutemanufacturingsectorneedsdynamicentrepreneurswhocantake

    thesectorforward.

    9 Forthisanenergeticanddynamicmanagement,dedicatedmidlevel

    professionals,particularly

    engineers

    and

    junior

    management

    trainees

    arerequired.

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    7.Recommendations Developinginstitutionalcapacityforbetterhumanresource

    9 Upgradation ofatextileinstitutelocatedinJamalpur forjute

    manufacturingsectorisagoodinitiative.

    9 Jutemillassociationsshoulddevelopcollaborativearrangementwiththe

    institute

    to

    develop

    human

    resources

    and

    undertake

    necessary

    R&D.

    Buildingastrongbaseforresearchanddevelopment(R&D)

    9 Recentinventionofgenomesequencingofjutecouldbeexpedited

    further.9 Publicprivatepartnership ofresearch(betweenuniversity/instituteand

    privatesector)forthedevelopmentofcommercialjutegoodsneedstobe

    prioritised.

    9R&D

    undertaken

    by

    Bangladesh

    Jute

    Research

    Institute

    (BJRI)

    should

    be

    expandedwithmorefocusondevelopmentofcommercialproducts.

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    7.Recommendations GoB should

    introduce

    aTechnology

    Upgradation Fund

    (TUF),

    like

    that

    of

    in

    India

    9 Inordertoprovidefinancialsupporttothejutemanufacturingsectorfor

    necessarydevelopmentandupgradation ofmachineries,production

    process

    and

    further

    mechanization

    etc.

    GoB aswellasthecommercialbanksshouldtakenecessarymeasuresto

    providefinancialsupport

    9In

    the

    form

    of

    low

    interest

    credit

    to

    the

    jute

    manufacturing

    sector

    especiallyforprocurementofnewmachineries,

    upgradation/replacementofexistingmachineries,developmentof

    factorypremisesandgodownfacilitiesetc.

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