Background of the Study:

A requirement of fulfilling MBA courses is to do an internship with an organization. Accordingly my

advisor Professor Dr. Haripada Bhattacharjee instructed me to do internship in Group QA as I am working
for this company.Group QA is a multi segment business group doing business in the RMG sector, power
tools and pesticides. My advisor has guided me to what to do and how to do those on the basis of RMG
sector.

Objective of the study:

The objective of the internship report is to find thefollowings:
Find out the critical requirements to get an order from renowned Buyers
Find out the Changes in the marketing strategy in post Rana Plaza era
Find out different marketing activities with regards to the changed environment and in the
competitive market : post Rana Plaza era

Methodology:
Its a desk research because secondary materials are available from different sources. These are particularly
published materials of Group QA and surveys performed by others from internet and the data available
from the internal sources of the company which have been taken up for the analysis and interpretation.

Page 1 of 30

CHAPTER-: 01
Overview of RMG Sector
1.1

Introduction:

The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. It is
the largest exporting industry in Bangladesh, which experienced phenomenal growth during the last 25
years. By taking advantage of an insulated market under the provision of Multi Fiber Agreement (MFA) of
GATT, it attained a high profile in terms of foreign exchange earnings, exports, industrialization and
contribution to GDP within a short span of time. The industry plays a key role in employment generation
and in the provision of income to the poor. Nearly four million workers are directly and more than twelve
million inhabitants are indirectly associated with the industry. Over the past twenty five years, the number
of manufacturing units has grown from 180 to over 4000. The sector has also played a significant role in
the socio-economic development of the country.
The quota came to an end at 2004 but it continued to show robust performance, competitive strength and,
of no less importance, social commitment. RMGs contribution to Bangladesh economy is well-known,
well-appreciated and well-respected.
Garments industry is the largest export industry for our country and it contributes 75% of total export. The
industry is associated with its strength, weakness, threat and opportunity.
In this study an attempt has been made to describe the overall scenario of Bangladesh Ready Made
Garments industry . At this time of free economy everyone may be interested to know about the largest
export industry and the mechanism of doing business here. The present study has been undertaken with
consideration of this fact.
Agriculture has been the backbone of economy and chief source of income for the people of Bangladesh,
the country made of villages. Government wants to decrease poverty by getting highest productivity from
agriculture and achieve self-reliance in food production. Apart from agriculture, the country is much
concerned about the growth of export division. Bangladesh have accelerated and changed her exports
substantially from time to time. After Bangladesh came into being, jute and tea were the most exportoriented industries. But with the continual perils of flood, failing jute fiber prices and a considerable
decline in world demand, the role of the jute sector to the countrys economy has deteriorated (Spin anger,
1986). After that, focus has been shifted to the function of production sector, especially in garment
industry.

Page 2 of 30

1.2

RMG sector of Bangladesh

The RMG industry is the only multi-billion-dollar manufacturing and export industry in
Bangladesh. Whereas the industry contributed only 0.001 per cent to the countrys total export
earnings in 1976, its share increased to about 75 per cent of those earnings in 2005. Bangladesh
exported garments worth the equivalent of $6.9 billion in 2005, which was about 2.5 per cent of the
global total value ($276 billion) of garment exports. The countrys RMG industry grew by more
than 15 per cent per annum on average during the last 15 years. The foreign exchange earnings and
employment generation of the RMG sector have been increasing at double-digit rates from year to
year. Some important issues related to the RMG industry of Bangladesh are noted in table
Table1. Important issues related to the Bangladesh ready-made garment industry

Year
1970-1980
1982-1985
1985
1990
1993
2003
2005
2006
2007-2008

Issue
Early period of growth
Boom days
Imposition of quota restriction
Knitwear sector developed significantly
Child labor issue and its solution
Withdrawal of Canadian quota restriction
Phase out of quota restriction
Riots and strike by garments labor
Stable growth

Source: Compiled by the databases of the Bangladesh Garment Manufacturers and Exporters
Association, and the Export Promotion Bureau, Bangladesh.
Currently, there are more than 4,000 RMG firms in Bangladesh. More than 95 per cent of those firms are
locally owned with the exception of a few foreign firms located in export processing zones (Gonzales,
2002). The RMG firms are located mainly in three main cities: the capital city Dhaka, the port city
Chittagong and the industrial city Narayangonj. Bangladesh RMG firms vary in size. Based on Bangladesh
Garment Manufacturers and Exporters Association (BGMEA) data, Mainuddin (2000) found that in 1997
more than 75 per cent of the firms employed a maximum of 400 employees each. Garment companies in
Bangladesh form formal or informal groups. The grouping helps to share manufacturing activities, to
diversify risks; horizontal as well as vertical coordination can be easily found in such group activities.
Ready-made garments manufactured in Bangladesh are divided mainly into two broad categories: woven
and knit products. Shirts, T-shirts and trousers are the main woven products and undergarments, socks,
stockings, T-shirts, sweaters and other casual and soft garments are the main knit products. Woven
garment products still dominate the garment export earnings of the country. The share of knit garment
products has been increasing since the early 1990s; such products currently account for more than 40 per
cent of the countrys total RMG export earnings (BGMEA website).
Although various types of garments are manufactured in the country, only a few categories, such as shirts,
T-shirts, trousers, jackets and sweaters, constitute the major production-share (BGMEA website; and Nath,
Page 3 of 30

2001). Economies of scale for large-scale production and export-quota holdings in the corresponding
categories are the principal reasons for such a narrow product concentration.
Foreign buyers are concerned about the different compliance of law. So, they were bothered about the
child labor issue of Bangladesh. But later on this problem is salute and now garments are restricted to
employ child labor. In 2005 the quota facilities for Bangladesh was withdrawn. Everybody thought it
would be a great shock for garments industry. But in reality Bangladesh has faced this challenge with great
courage. The fact is that the export of garments product has increased after the withdrawn of this quota.
And the last two years were really good time for garment industry. The political situation was stable under
the countrys state of emergency and this boost the growth of the industry.

1.3 Size of the garments industry of Bangladesh

The garment industry is by far the countrys most important manufacturer, earning around $5 billion
annually and accounting for about two thirds of all exports. Bangladesh has about 4,000 garment factories
with up to 10 million livelihoods dependent on it directly or indirectly. In 2006 it provided jobs for 2.2
million people, accounted for 10.5% of the countrys GDP, and contributed 40% of its manufacturing
output. Exports have been growing at an impressive rate in recent years. In 2006/07 alone, they increased
by 18.2% to reach US$9.6 billion, a record level for the fifth consecutive year. The contribution to GDP
increases at 13.25% in 2007. About 80 per cent of garment workers are women. The Ready Made
Garments sector has more potential than any other sector to contribute to the reduction of poverty. Despite
the phenomenal success of the RMG sector the working conditions and wages of workers in the industry
are cause for serious concern. Bangladeshs current position as a leading garments exporting nation needs
to be consolidated. The economy-wide reverberations of failure would be disastrous. We believe it is in
everybodys interest to sustain this industry an industry which changed the lives of so many people,
particularly women, in Bangladesh.

1.4 Bangladesh garments industry : Maturity Level

Bangladesh garments industry has just woke up one morning and find itself a matured one. If we follow
DS reports on the conditions of Bangladesh garments industries, we may as well have the same idea. Until
1/11/2007, as per some media, everything was a mess. Now a day, while teachers and lawyers cant hold
elections, garments industries owners hold elections under direct government patronage. And DS must also
speak well of the team mates. Maturation of a large industry like RMG sector in Bangladesh is not an
overnight phenomenon. The industry was trying to be in a matured stage from last ten years but the unrest
political situation was the main obstacle. Bangladeshs garments exports have experienced a boom from
the last two years because of a stable business climate under the countrys state of emergency. The
nations exports of knitted and woven items rose by nearly 17 percent to a record 10.7 billion dollars in the
financial year to June 2008. And now the industry is at the matured stage.

Page 4 of 30

1.5 Strength, Weakness, Opportunity & Threat of Garments sector of Bangladesh at a

glance
1.5.1 Strength

Considerable Qualified/keen to learn workforce available at low labor charges.

Energy at low price
Easily accessible infrastructure like sea road, railroad, river and air communication.
Accessibility of fundamental infrastructure, which is about 3 decade old, mainly established by the
Korean, Taiwanese and Hong Kong Chinese industrialists.
FDI is legally permitted.
Moderately open Economy, particularly in the Export Promotion Zones.
GSP under EBA (Everything But Arms) for Least Developed Country applicable (Duty free to
EU).
Improved GSP advantages under Regional Cumulative.
Looking forward to Duty Free Excess to US, talks are on, and appear to be on hopeful track.
Investment assured under Foreign Private Investment (Promotion and Protection) Act, 1980 which
secures all foreign investments in Bangladesh.
Overseas Private Investment Corporation, USA insurance and finance agendas operable
Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which
protection and safety
measures are available.
Adjudication service of the International Centre for the Settlement of Investment Dispute (ICSID)
offered.
Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD& Cellular services.
Weakness of currency against dollar and the condition will persist to help exporters
Bank interest@ 7% for financing exports
Convenience of duty free custom bonded w/house
Readiness of new units to enhance systems and create infrastructure accordant with product growth
and fast reactions to circumstances

1.5.2 Weakness

Lack of marketing tactics

Absence of easily on-hand middle management
A small number of manufacturing methods
Low acquiescence: there is an international pressure group to compel the local producers and the
government to implement social acquiescence. The US GSP may be cancelled and purchasing from
US & EU may decrease significantly
M/c advancement is necessary. The machinery required to assess add on a garment or increase
competence are missing in most industries.
Lack of training organizations for industrial workers, supervisors and managers.
Autocratic approach of nearly all the investors
Fewer process units for textiles and garments
Sluggish backward or forward blending procedure
Incompetent ports, entry/exit complicated and loading/unloading takes much time
Speed money culture
Time-consuming custom clearance
Unreliable dependability regarding Delivery/QA/Product knowledge
Page 5 of 30

Communication gap created by incomplete knowledge of English

Subject to natural calamities

1.5.3 Opportunity

EU is willing to establish industry in a big way as an option to china particularly for knits,
including sweaters
Bangladesh is included in the Least Developed Countries with which US is committed to enhance
export trade
Sweaters are very economical even with china and is the prospect for Bangladesh
If skilled technicians are available to instruct, prearranged garment is an option because labor and
energy cost are inexpensive.
Foundation garments for Ladies for the FDI promise is significant because both, the technicians
and highly developed machinery are essential for better competence and output
Japan to be observed, as conventionally they purchase handloom textiles, home furniture and
garments. This section can be encouraged and expanded with continued progress in quality.

1.5.4 Threat

The exporters have to prepare themselves to harvest the advantages offered by the opportunities.

1.6 Major market of RMG industry

The RMG industry of Bangladesh fully depends on the export. The major importer of RMG products are
USA and Europe. But there is other country that has a contribution to the total RMG export. The following
table contains the list of major importer of our RMG products.
Table-2 : Major market of RMG industry
(Tk in million)
Country
Belgium
Canada
France
Germany
India
Italy
Netherlands
Sweden
Turkey
U.K.
U.S.A

Amount
3812.00
6218.00
13078.00
27008.00
80.00
22.00
10619.00
3058.00
2681.00
15411.00
43368.00
Source: Bangladesh bank ( April to June)

Page 6 of 30

1.7 Contribution to Economy

The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive
manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting
industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports,
industrialization and contribution to GDP within a short span of time. The industry plays a significant role
in terms of employment generation. Nearly two million workers are directly and more than ten million
inhabitants are indirectly associated with the industry. In addition to its economic contribution, the
expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into
the workforce. Hence it is quite apparent that this sector has played a massive role in the economic
development of the country.
RMGs contribution in terms of GDP is highly remarkable; it has reached 13 percent of GDP which was
only about 3 percent in 1991. It also plays a pivotal role to promote the development of other key sectors
of the economy like banking, insurance, shipping, hotel, tourism, road transportation, railway container
services, etc.
One of the key advantages of the RMG industry is its cheap labor force, which provides a competitive edge
over its competitors. The sector has created employment opportunities for about two million people of
which 70 percent are women who mostly come from rural areas. Thus the industry helps in the countrys
social development, women empowerment and poverty alleviation. Currently RMG earns the lions share
of foreign exchange earnings.
Table- 6:RMG export growth and percentage as the total export (In million US$)
Year

Export of RMG

Total Export

1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95

0.012
0.069
0.104
0.672
3.36
6.99
10.84
31.57
116.20
131.48
298.67
433.92
471.09
624.16
866.82
1182.57
1445.02
1555.79
2228.35

417.00
493.74
618.81
749.44
709.85
625.90
686.60
811.00
934.43
819.21
1076.61
1231.20
1291.56
1923.70
1717.55
1993.90
2382.89
2533.90
3472.56

% of RMG Export to
Total Export
0.02
0.01
0.02
0.09
0.47
1.12
1.58
3.89
12.44
16.05
27.74
35.24
36.47
32.45
50.47
59.31
60.64
61.40
64.17
Page 7 of 30

1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Source: Export
promotion Bureau

2547.13
3001.25
3781.94
4019.98
4349.41
4859.83
4583.8
4900.0
5700.00
6300.00
7900.8
9211.2
70563.03

3882.42
4418.28
5161.20
5312.86
5752.20
6467.30
5986.09
6396.87
7600.00
8422.46
10526.2
12177.9

65.61
67.93
73.28
75.67
75.61
75.14
76.57
76.60
76.00
74.80
75.06
75.64

Total
This table reveals the RMG export from the initial stage of the industry till 2007 and its contribution to
total export. The RMG sector enjoys a continuous growth from the beginning of the industry but the initial
level was tough. From the last ten years it is viewed that RMG export is contributing 75% of the total
export. The following graph can give clear view of growth in RMG export for the last 10 years.

Page 8 of 30

CHAPTER-: 2
PROFILE OF GROUP QA
2.1 HISTORICAL P ROFILE OF GROUP QA
The journey of Group QA has been a long one. In 1965, One dynamic thinking entrepreneur cplanned the
first seeds of the Group QA. Nearly three decades later, those early seeds have matured into large trees
with branches spread over various growth sectors.
The decentralized management structure of the corporation has ensured that efficiency and productivity
have not been hampered due to the organizations growth and expansion.
Over the years, Group QA has remained true to providing customers with the very best in product selection
and service. The group continually invests in modernizing its management system and designs specific inhouse training programs targeted towards improving the creative abilities of its people. Group QA is
confident that the trust and goodwill of its customers, vast experience of its management, and the
dedication of its workforce will enable the organization to lead Bangladesh towards a prosperous future.
Corporate Headquarter:
Group QA
228/A, Tejgaon Industrial Area, Dhaka-1208

Page 9 of 30

2.2 CORPORATE INFORMAITON OF GROUP QA

Group QA has diversified business activities in various sectors. It had started its business with one
company and now it is a group of ten companies. It has expanded its business from Power Tools to Seeds
and pesticides, from mosquito coil to Ready Made Garments, from Fish and cattle feed to Auto Parts and
many more. The names of the companies are given below:
Auto Crop Care Limited
KrrishiBanijayProtisthan
Abedin Garments Ltd.
Kaniz Garments Ltd
Kaniz Fashions Ltd.
AbedinEquipments Ltd.
Quazi Enterprise Ltd.
QuaziAbedin Textiles Ltd.
Kaniz Textiles Ltd.
Abedin Feeds Ltd.

Sole Distributor
BOSCH, Germany
Skill , Fishcer , China

Page 10 of 30

2.3 History and Background of Group QA

Group QA stepped into the woven garments manufacturing business in 1983 with pioneering unit Abedin
Garments Limited. Gradually, developed two other units namely, Kaniz Garments Limited in 1994 and
Kaniz Fashions Limited in 1998. All three factories were housed in rented accommodations.
In view of the growth of our business and the challenges of various issues with particular reference to post
multi-fibre agreement era, Group QA has established its own RMG production plants at 228/A, Tejgaon
Industrial Area, Dhaka-1208, Bangladesh and started operation on 1st January 2003. It is a 9-storied
building with the total floor space of about 1,60,000 square feet. We firmly ensure a healthy working
environment and address various aspects of compliance issues and welfare of our employees. We have
about 3500 efficient work force, capable of production over 5 ( Five) million woven garments per year.
Presently, we are recognized as a state-of- the art manufacturing facility of woven garments in Bangladesh.

2.4 Nature of business and financing of operations

Manufacturer & Exporter of Readymade Woven Garments
Terms of Business

L/C at sight , Contract, TT

FOB,C&F,CMT

Yearly Turnover

US$ 20.00 Million

Markets

Europe 95% , USA/CA 5%

Product Range

Main Products - Trousers & Shirts/Blouses

For Men, Women, Girls, Boys & children in
Any discipline of woven fabric with Denim maximum 10oz weight.
Other Products - i) Children's Dresses.
ii) Boy's shirts - flat pack.
iii) Night Wears.
iv) Padded/None-Padded Waist Coat.
v) Skirts.
vi) Trousers

Page 11 of 30

2.5 Main Customers

H&M

Main products Trousers and Shirts/ Blouses and

mostly in Cotton base fabrication. We do produce ChildrenDresses,
Boys shirts, Night Wear, Swimming shorts as well. Mostly in light
weight fabric like- Light Denim,Canvas, Twill, Poplin etc,etc. We
have been working with H & M since 1999.

C&A

Main products - Ladies Blouses. Specially in light

weight fabrics and mostly Polyester base fabrication. We do produce
Padded/None-Padded waist coat as well. We are one of theprominent
Ladies Blouse garment manufacturing company in Asia for C & A
since 1990.

S Oliver

Main products - Ladies & Mens Shirts and Pants and

mostly in Cotton base fabrication

INDITEX

Main products - Ladies Blouses and mostly in Cotton

and blended fabrication.

ASH CITY

Main products - Ladies Blouses and mostly in

Cotton

and Polyester Blnded base fabrication. Have been working with them
since 2004.
CHARLSE VOGELE
Polyester base fabrication.

Main products - Ladies Trouser and Blouses. Mostly in Cotton and

2.6 Production Facilities

Group QA factory premises is a nine storied building,
Each floor consists of 18000 sft area with 3 stair case. 2 stair case always open for workers easy movement
and 1 stair case with emergency push door system which can open from in side easily for in case of any
emergency. Floors are equipped with modern machineries mostly from Japan,Germany,England& China.
The factory is equipped with material handling system (MHS) from Mostoles , Spain. The bonded wear
house is equipped with racking system for storage of raw materials and hanging garments. The racking
system has been imported from Vogelsang ,Germany. Introduced Switch Track production handling
system. The system has been imported from Canalis, UK. The material handling system has been designed
by the experts from South Africa and the production Handling system has been designed by the experts
from Sri Lanka.
Page 12 of 30

Chapter-: 03
The marketing strategy, activities, goal and corrective action plan based on
a Case Study: Post Rana Plaza tragedy era
After the Rana Plaza incident the RMG business of Bangladesh takes new shape and the marketing
strategy of the local suppliers changed accordingly. This new era required to deal with competitive market
environment and concentration on building and fire safety issues.

Segmentation: The two major segment of markets are the EU and US market. Most of the suppliers from
Bangladesh work with these two segment.

Targeting: As in the case study the factory is working with three major importer of EU our study will
concentrate on the EU portion.

Positioning: The positioning of RMG suppliers are comprised of the following

1. Fulfillment of Building and Fire safety issues

2. Fulfillment of Production, complacence and quality management system with production process

3.1

Building and Fire Safety

Building and fire safety is a critical requirement and plays vital role on the marketing of a factory product.

Page 13 of 30

3.1.1 Different aspects of Accord Implementation

The Accord is an independent agreement designed to make all garment factories in Bangladesh safe
workplaces. It includes independent safety inspections at factories and public reporting of the results of
these inspections.
Where safety issues are identified, retailers commit to ensuring that repairs are carried out, that sufficient
funds are made available to do so, and that workers at these factories continue to be paid a salary.
The Accord is a legally binding agreement. It has been signed by over 150 apparel corporations from 20
countries in Europe, North America, Asia and Australia; two global trade unions, IndustriALL and UNI;
and numerous Bangladeshi unions. Clean Clothes Campaign, Worker Rights Consortium, International
Labor Rights Forum and Maquila Solidarity Network are NGO witnesses to the Accord. The International
Labor Organization (ILO) acts as the independent chair.
3.1.2 Aim of Accord
The aim of the Accord is the implementation of a program for reasonable health and safety measures to
ensure a safe and sustainable Bangladeshi Ready Made Garment industry for a period of five years.
3.1.3 The company members of Accord
Over 170 international brands and retailers have signed the Accord. A full list of companies is given in the
appendix.
3.1.4 Fund of Accord
As signatories to the Accord, Companies will each contribute an equitable share of the funding required,
up to a maximum contribution of $500,000 per annum. The share is based upon a sliding scale, relative to
the individual Companys volume of sourcing from Bangladesh, relative to the annual volume of other
Company signatories.
Tier

Yearly Volume (In USD)

Yearly Fee (In USD)

More than 500 Million

500,000

Between 250 to 500 Million

375,000

Between 100 to 250 Million

175,000

Between 50 to 100 Million

75,000

Between 25 to 50 Million

37,500

Page 14 of 30

Between 10 to 25 Million

17,500

Between 1 to 10 Million

10,000

Less than 1 Million

1,000

This funding will be specifically for the activities of the Steering Committee, the Safety Inspector and
Training Co-coordinator. This funding does not cover remediation such as structural repairs or renovations
on factories. These bands may change annually as the budget changes.
3.1.5 Funds for cost of structural repairs
Under the Accord, Companies are responsible for ensuring sufficient funds are available to pay for
structural repairs or renovations. This includes negotiating commercial terms with suppliers to ensure that
it is financially feasible for factories to maintain safe workplaces and comply with any structural repairs or
safety improvements, and where appropriate, the use of alternative means such as joint investments, loans,
accessing donor or government support.
3.1.6 The inspection Schedule
Independent inspections of a first batch of 10 factory started in November 2013. Since February 2014
inspection teams are in the field inspecting more than 50 factories per week. . The Accord intends that all
initial inspections and, where needed, renovation plans will be completed by October 2014. In addition,
some companies are already conducting their own inspections and information from these will be
incorporated into the work of the Accord where appropriate.
3.1.7 The Initial inspection Team
For the initial inspections the Accord has contracted four international engineering firms: Woosun
(electrical); Hughes (fire) and Arup & WSP (structural). Combined they have approximately 110
international and local engineers and technical experts working on the inspections. Additionally, the
Accord Chief Safety Inspector will recruit a team of more than 25 permanent Bangladeshi Accord staff
engineers.
3.1.8 Publication of factory information
A single aggregated list of all factories in Bangladesh under the Accord was first published on 3 October
2013. The factory data management of the Accord is an ongoing process. Accord signatory brands update
their factory data on an ongoing basis submitting it directly to the Fair Factories Clearinghouse (FFC). The
publicly available list on the Accord website is updated monthly.
3.1.9 The government of Bangladesh says it is inspecting many factories. The relation of the
inspection with the ACCORD system
The Accord welcomes the decision of the Bangladesh Government to renew its commitment to inspect
factories. It is the intention of the Accord to work with all relevant stakeholders including Government, to
build capacity for a safe and sustainable Bangladeshi Ready Made Garment industry.
Page 15 of 30

3.1.10 Incase of Unsafe Building condition

Where a building or structure is found to pose an immediate threat to worker safety, the Accord will
recommend that the building be temporarily evacuated until such time that more in-depth tests can be
conducted, substantial weight and load is removed from the building, and/or immediate strengthening
measures are completed. In such cases, the Accord requests that the Review Panel, established through the
Ministry of Labour and Employment led National Plan of Action, be convened. The Review Panel was
established for inspections which lead to determinations that a building evacuation or suspension to
operations is required. In order to overturn the initial production suspension / evacuation recommendation
of the inspection, a unanimous decision of the team of 4 Review Panel engineers (1 Accord, 1 Alliance, 2
Government of Bangladesh/BUET) must be reached.
Workers will be notified and will continue to receive salary payments while the building is repaired to standard.

3.2

Case Study : Accord and Group QA

According to the contract agreement with the buyers the Accord team inspected the Factory
building of Group QA. During the audit they have provided their observation. According the
observation and recommended time frame the factory management takes corrective action
plan (CAP) which have been given in the following tables:

Page 16 of 30

3.2.1 Inspection Type: Electrical

Item
No
1

Accord Inspection
Observation
No protection between
the transformer and
surrounding area.

Accord Action Plan

Transformer may be
separated from panels
by constructing barrier
walls.
Arcing horns shall be
installed as per the
transformer
manufacturer's
requirement.
Cables connecting to
transformer must be
supported on risers.

Accord
Timeline
6 Months

Arcing horns on HT
bushings of
transformer, not
installed.

Cables terminating to
transformer bushings
are not supported.

Cable trench filled

with
debris.

Cable trench shall be

cleaned first and then
covered for the
protection purposes.

Within 1
Month

Cable laid directly on

concrete
floor.

3 Months

Panel base plates

removed to allow
cable entry.

Barrier/separators
between different
phases are not
installed.

11kV HT cable must be

supported in cable trays
or
laid in trenches. The
cable must be protected
against physical injury.
Panel base plate must
be installed, at all times,
and cable(s) entering
panel must be firmly
fixed with cable gland.
Install separators
between different
phases of MCCB.
Existing phase
separators fabricated
from insulating
materials may not
provide the required
insulating properties for
the type of MCCB
installed..

Within 1
Month

3 Months

3 Months

Within 1
Month

Page 17 of 30

Insufficient working
area in front of the
panel (Operating area)

Excessive dust and lint Clean the transformer(s)

deposit in transformer periodically as part
room.
ofroutine maintenance

Sufficient clearance in
front
of the panel shall be
provided.

Within 1
Month

Within 1
Month

3.2.2 Inspection Type: Fire

Item
No
1

Accord Inspection
Accord Action Plan
Observation
The
Separate the
Boiler/Generator/Transformer Boiler/Generator/Transformer
room is not separated by fire- room by a minimum 2-hr fire
rated doors from the
rated construction. Seal
surrounding areas.
and/or protected all openings
to maintain the required fire
separations.

Accord
Timeline
Within 03
Months

Areas used for combustible

storage are not separated by
fire rated construction, due to
non-fire-rated doors and vent
openings.

Within 3
Months

Provide dedicated storage

rooms separated by minimum
1-hr fire-rated construction
Where separate storage
rooms are not feasible,

Final Action Plan

We have decided to
install fire-rated
doors in mentioned
area. But subject to
existing structure,
right sourcing,
financial
availability, import
terms and
availability of
Engineers &
designers we feel
the time required is
justifiable.
Moreover this is a
running factory and
we have to face
interuption within
the production
work. Due to the
mentioned reason
time may vary from
the planed schedule.
We are planning to
install sprinkler in
the storage areas.
But subject to
existing structure,
Page 18 of 30

provide defined storage areas

and limit the storage
arrangement as follows:
- Maximum height of 2.4m
and maximum area of 23m2
- If sprinkler protected:
maximum height of 3.66m
and maximum area of 93m2
Separate areas of unenclosed
combustible storage by a
minimum clear distance of
3m.

The North and Southwest exit Provide minimum 1.5-hr fire

stairs are not separated from
rated doors and seal all
work areas and other spaces
unprotected openings to
on each floor by fire rated
separate the exit stairs from
construction. Non fire-rated work areas and other building
doors and unprotected
spaces on all floor levels.
window openings connect the Ensure that the fire doors are
stairs to the factory floor
self-closing and positive
latching and that they are
provid with fire exit (panic)
hardware where serving
production floors.
If fire doors are required to be
held open for functional
reasons, provide automatic
closing devices tied to the fire
alarm system.

Unsealed penetrations and

openings are located in exit
stair enclosures.

Egress doors and gates with

locking features
were provided at
building exits, exit stairs,

Within 3
Months

Seal all penetrations and

Within 3
openings in exit stair
Months
enclosure walls to maintain in
fire separation.
Remove locking features
Immediate
from all egress doors and
gates.

right sourcing,
financial
availability, import
terms and
availability of
Engineers &
designers we feel
the time required is
justifiable.
Moreover this is a
running factory and
we have to face
interuption within
the production
work. Due to the
mentioned reason
time may vary from
the planed schedule.
We are agree to
inslatted Fire rated
doors in mentioned
area. But due to
existing structure,
right sourcing,
financial
availability, import
terms and
availability of
Engineers &
Designers we feel
the time required is
justifiable.Moreover
this is a running
factory and we have
to face interuption
within the
production work.
Due to the
mentioned reason
time may vary from
the planed schedule.
work will be done
as per
recommendation.
Due to existing
structure, right
sourcing, financial
availibility, import
Page 19 of 30

and exit discharge.

Only the doors on the
Southeast stair were
provided with panic
hardware.

Storage was located in the

exit stair.
A large pile of combustible
storage was located at the
base of the Soutwest exit stair
on the 1st floor landing.
Multiple carts of combustible
items were
observed on exit stair
landings.
A significant amount of
storage was located on the
ramp from the basement
storage.
Collapsible gates and sliding
doors are provided at North
and Southwest exit stair
openings.

If locks are required for

security reasons, utilize
special door locking features
complying with NFPA 101.

Remove all storage from

exit stairs and egress paths.

Keep egress paths and stairs

clear of storage.

Replace all gates / sliding

doors along the means of
egress with side-hinged,
swinging egress doors.
If locks are required for
security reasons, utilize
special door locking features
complying with NFPA 101.

terms and
availibility of
Engineers
&designeers we feel
the time required is
justifiable to
installed the
appropriate firerated doors instead
of existing doors.
Immediate
Already removed
all the storage items
from exit stair and
egrees paths
accordingly and it
will be continued in
future.

Immediate Work has been done

as per
recommendation.
Within 3
Months

We are planning to
install Fire rated
doors instead of
collapsible gates
and sliding door.
But due to existing
structure, right
sourcing, financial
availability, import
terms and
availability of
Engineers &
Designers we feel
the time required is
justifiable.
Moreover this is a
running factory and
we have to face
interuption within
the production
work. Due to the
mentioned reason
time may vary from
the planed schedule.
Page 20 of 30

The high-rise building has an

occupied floor greater than
23m (75 ft) and is not
provided with automatic
sprinkler protection. The
large occupant loads, heavy
fuel loading, and anticipated
extended egress times
warrant sprinkler protection.

Provide automatic sprinkler

protection throughout the
building in accordance with
NFPA 13.

Design
within 6
months,
install
within 12
months

10

Inspection, testing, and

maintenance records for the
fire alarm system were not
available.

Inspect, test and maintain the

fire alarm system, and keep
written records on-site, in
accordance with NFPA 72.

Within 3
months

We have decided to
provide automatic
sprinkler system
throughout the
building. But due to
existing structure,
right sourcing,
financial
availability, import
terms and
availability of
Engineers &
Designers we feel
the time required is
justifiable.Moreover
this is a running
factory and we have
to face interuption
within the
production work.
Due to the
mentioned reason
time may vary from
the planned
schedule.
This will be done
within the time
frame.

3.2.3 Inspection Type: Structural

Item
No
1

Accord Inspection
Observation
The additional work
area atop the roof slab
applies loads of an
additional storey to the
columns beneath it.

The additional work

area atop the roof slab

Accord Action Plan

Accord
Timeline

Remove workers and Immediate

equipment from
rooftop work area.

Demolish existing
rooftop work area

Within 6
Weeks

Final Action Plan

Already shifted all the work
station and workers from rooftop
and started to removing the
structures as recommended.

Hopefully it will be completed

within 6 weeks.
Page 21 of 30

applies loads of an
additional storey to the
columns beneath it.
Ground floor storage
loads exceed allowable
limits in localized
areas.

Ground floor storage

loads exceed allowable
limits in localized
areas.

Column safety factors

are lower than
required.

Column safety factors

are lower than
required.

Building composed of
flat slabs lacks an
apparent lateral
restraint system.

Building composed of
flat slabs lacks an
apparent lateral
restraint system.

and remove
demolition remnants
from the roof
Immediate

We have already reduced and

rearranged the ground floor
storage loads which will be
maintained in future.

6 Weeks

As per recommendation a
committee has been formed to
monitor this issue properly.

Within 6
Weeks

Work will be done within the

time frame

Within 6
months

Work will be done within the

time frame if required.

Within 6
months

Work will be done within the

time frame

6 months

Work will be done within the

time frame if required.

Reduce and
distribute storage at
ground floor level to
allowable loads
indicated by slab
loading plan.
Develop and
implement protocols
for the monitoring of
slab loading in
accordance with
existing slab loading
plans.
Factory engineer to
conduct a review of
design, loads and
column stresses
throughout the
factory.
Amend existing
loading plan
according to findings
of engineering
review mentioned
above

Factory engineer to
conduct a review of
structure's lateral
stability system.
If required,
implement measures
to bolster lateral
stability.

Page 22 of 30

3.3 Production, complacence and quality management system with production process

For factories to get approval it must comply with the critical minimum ethical and quality
complacence audit done by different Buyer or representative from the buyer.
3.3.1 Case Study : New Factory Approval Flow Chart for Marks and Spencer

NEW FACTORY APPROVAL FLOW CHART

Factory is proposed for M&S production

FACTORY PRE-AUDIT
Factory completes Pre-audit Questionnaire

ETHICAL and QUALITY APPROVAL

M&S auditor confirms PASS on the 8 M&S Ethical & Quality Critical
requirements

REGIONAL OFFICE VISITS FACTORY

rd

Ethical SMETA 3 party audit plus M&S Quality QMS audit

FACTORY APPROVED FOR M&S PRODUCTION

NOTE: QMS CAPAR ACTION PLAN IN PLACE REVIEWED
BY M&S IN SIX MONTHS

3.3.2 Stage 1: Ethical Complacence

In order to engage with a new factory a social ethical audit must be carried out and the key points that will
be review are the adherence to the 8 points below.
1) Child labour shall not be used
2) Minimum wages must be paid while striving towards paying living wages
Page 23 of 30

3) Working hours must not be excessive and overtime must be voluntary

4) Working conditions must be safe and hygienic
5) Employment must be freely chosen and labour must not be bonded
6) Regular employment must be provided and temporary workers protected with contracts
7) There must be no discrimination, no harassment, and no harsh or inhumane treatment of workers
8) Freedom of association and collective bargaining must be respected

3.3.3 STAGE 2 Quality Management Compliance Capability

CRITICAL
REQUIREMENT

MANDATO
RY OR
OPTIONAL?

WHAT MUST FACTORY DEMONSTRATE?

1. FACTORY
CAPABILITY

MANDATO
RY

Factory demonstrates it has the equipment, systems,

trained people, and management to deliver the
product type(s) required for proposed M&S
contracts

CRITICAL
REQUIREMENT

mandatory or
optional?

WHAT MUST
FACTORY
DEMONSTRATE?

GUIDELINES

Factory demonstrates
it has a competent
system to inspect
product on the
production line, and
for final product
inspection, with clear
feedback and
corrective actions
supported by factory

Factory management
demonstrate professional
competence to manage and
deliver this process, and an
approved correctly constructed
garment is available for
reference by the production
and inspection manager

mandatory
2. INSPECTION
PROCESS
INLINE AND END
OF LINE

Page 24 of 30

management
CRITICAL
REQUIREMENT

mandatory or
optional?

WHAT MUST
FACTORY
DEMONSTRATE?

GUIDELINES

3. LABEL
MANAGEMENT

mandatory

Factory must
demonstrate a
competent system
which checks all
incoming labels
against customer
contract, that these
are then issued to
appropriate
production lines
accurately, with no
risk of different
customers labels
being mixed on
product

The process should be

managed by a competent
member of the production team
who has the authority to reject
labels, or labelled product, with
any errors present

mandatory
CRITICAL
REQUIREMENT or
optional?

GUIDELINES
WHAT MUST
FACTORY
DEMONSTRATE?

4. CONTRACT
AND SEWING
LINE DETAILS
AVAILABILITY

Factory must
demonstrate clear
evidence of
customer contract
details, and a clear
specification of the
garments
construction details
for the sewing line
manager to work to

mandatory

Fabric, component, label, sewing

thread, stitching and size grading
details are available for each product

Page 25 of 30

mandatory
CRITICAL
REQUIREMENT or
optional?

GUIDELINES
WHAT MUST
FACTORY
DEMONSTRATE?

5. NEEDLE AND
METAL
PROCEDURE

Factory can
demonstrate it has a
metal and needle
control procedure
that minimises the
risk that a needle
whole or broken
can pass through the
factory undetected,
and into the final
garment

mandatory

In addition, for factories intended for

a) Intimate apparel (Lingerie &

mens underwear)
b) Childrens clothing
Additional safety requirements apply
for approval of this section

mandatory
CRITICAL
REQUIREMENT or
optional?

GUIDELINES
WHAT MUST
FACTORY
DEMONSTRATE?

6. BUTTON AND mandatory

POPPER
ATTACHMENT
POLICY

Factory can
demonstrate it has
systems, and
equipment as
appropriate, to
deliver sewn-on
buttons or poppers
(or similar types of
snap-type security
trims) which remain
secure on the
finished product as
delivered to the
customer

mandatory
CRITICAL
REQUIREMENT or
optional?

In addition, for factories intended for

Childrens clothing

Additional safety requirements apply

for approval of this section

GUIDELINES
WHAT MUST
FACTORY
DEMONSTRATE?
Page 26 of 30

7. PREPRODUCTION
PROCESS AND
POLICY

mandatory

Factory can
demonstrate that for
each product line a
risk assessment, and
suitable follow up
plan of action, is
created and carried
out

The process should be managed by a

senior member of the organisation,
and prior to production, the action
plan is approved by Senior
Management

CRITICAL
REQUIREMENT

mandatory or
optional?

WHAT MUST
FACTORY
DEMONSTRATE?

GUIDELINES

8. INDEPENDENT
QUALITY
RESPONSIBILIT
Y

mandatory

Factory can
demonstrate its
Quality Manager(s)
are responsible
directly to the
Factory Director or
Manager, and not to
the Production
Manager

If the Quality Manager(s) are

responsible to the Production
Manager, this may compromise
their independence to reject
faulty product

3.4 Case Study: Marks And Spencer Quality Audit and Group QA

The Marks and Spencer Audit of Quality Standard has been performed by the Group.On different
operational process the self audit before the final audit by the Buyers team has shown a 83% compliance
on different required field.
Page 27 of 30

Departments

Max. Adjusted
Value Value

Actual
Score

Complacence

77

77

65

84%

2. Pre-Production Control

42

42

38

90%

3. Cutting Room

30

30

20

73%

4. Fusing for woven

Products

30

30

30

100%

4B. Fusing for Jersey Product

15

15

0%

5.Heat Seal Application

10

10

10

100%

5. Sewing Room

100

100

87

87%

6. Quality control After

Specific Process (
Print, Embroidery,
Heat Cutting etc.)

15

15

12

80%

7. Button Attach Section

10

10

60%

8. Popper Attach Section

10

10

70%

9. Pressing

10

10

90%

10. Hand sewing and

Repair

10

10

70%

11. Final Inspection

25

25

19

76%

12. Packing/ Finished

Garments Storage
Section

15

15

13.5

90%

13. Independent QA/QC

30

25

25

100%

14. Total

429

424

350.5

83%

1.Raw Material Receipt/Inspection

Page 28 of 30

3.5 Other competitive components of marketing activities:

The other competitive components affecting the marketing are as follows:
1. Quality of Product
2. Accepted Quality Level
3. Product cost
4. Shipment
5. Lead Time
6. Product Security
7. Sample Quality
8. Service and communication
9. Expertise of The employee
10. Referral

3.6 Limitation of the study

The analysis is mostly based on information of Rangs Properties Limited. To get more accurate
result of analysis, it would be good to have information from at least 25 to 30 companies. Due to
time limitation, it is not possible to get information from many companies. Companies do not want
to share information. They usually try to escape and give only general information as for example
business is not good. On the other hand, being in a job, it is really tough to get time to meet other
RMG factories and thereby get accurate information.

Page 29 of 30

4 Findings and Conclusion

Ready Made Garments market has been analyzed to be the most booming businesses in Bangladesh

There were no strict and well coordinated Building, Fire and Health safety policy and its
implementation existed before Rana Plaza incident

The EU is now strictly implemented Building, Fire and Health safety policy in the factories

The marketing and promotional activity is now to deal with the changed requirements with
respect to Safety, quality and production process issues

The marketing goal is to fulfillment of the critical requirements of the safety, quality and
production issues and strive to achieve high performance in the other components of
marketing

Case study shows a significant areas need to be corrected in the inspection of Accord with
respect to Electrical, Fire and Structural audit in Group QA

Appendix:
a) www.bgmea.com.bd
b) www.group-qa.com
c) www.epb.com.bd

Page 30 of 30