@
S I N G A P O R E
Strategy & Operational Excellence
For
African Textile Industry
K. Arivarasu, Sr. Partner, TTS Singapore &
Project Leader ETIDI-TTS Technical Services Program
@
February 15, 2020, Addis Ababa, Ethiopia
2
Presentation Flow
1.0 Introduction 2.0 Gazing into the Horizon…
2.1 Expanding Market 2.2 Increasing Fibre Demand Per Capita 2.3 Polyester is the mainstay …
3.0 Africa needs to prepare…
3.1 Increasing Trade (Global T & A ) 3.2 Africa’s Disproportionately Small Share… 3.3 What is Africa Exporting… 3.4 Leaders in Africa’s T & A Exports 3.5 Africa buys more than it supplies… 3.6 What is Africa Buying… 3.7 Africa’s Top Importers 3.8 Supply Gap Within Africa
4.0 Strategy: Prepare the Ground for Growth 4.1 Broad Strategy for Africa 4.2 Strategic Steps
5.0 Industry Productivity Gap (Africa Vs World’s Healthy levels)
5.1 Plant Utilization & Efficiency (Africa Vs The Global healthy Level) 5.2 Spinning Productivity (Africa Vs Health Level) 5.3 Weaving Productivity (Africa Vs Health Level) 5.4 Knitting Productivity (Africa Vs Health Level) 5.5 Reasons
6.0 Operational Excellence 6.1 Operational Excellence Steps 6.2 Operational Challenges
7.0 Texcoms Textile Solutions • Capabilities & Services • TTS Times
3
1.0 Introduction
• Africa has been on the backstage for far too long
• Its time the continent claims its rightful share in the Global Textile and Apparel business
• In the coming three decades Africa will have additional 1 Bn people
• With the rising fibre demand, Africa’s consumption will go only one way – up !!
• Cotton supply wont be able to keep up with the demand (Synthetic will fill the gap)
• Africa need to prepare, if it wants to be able to cloth its people & remain relevant in the global value chain
• The only way to do it in the ‘free-trade world’, is with the right strategy and competitive upper-hand
ISO 9001:2015 Certified
ISO/IEC/17025 Accredited
@
S I N G A P O R E
2.0 Gazing Into the Horizon…
5
2.1 Demographic Shifts
1,3
08
1,3
66
1,4
34
21
1
32
9
14
6
12
7
2,4
89
1,6
39
1,4
02
22
9
37
9
13
6
10
7
Africa India China Brazil USA Russia Japan
Population in Bn
2019 2050
• By 2050, world projected to add 2.0 billion more people.
• Developing countries would contribute the most
• Africa is growing fast at 2.5 per cent(2018), more than double the world’s pace.
• Africa will grow by 1.181 billion.
• One fourth of the world population will live in Africa, as compared to one sixth today.
Source: UNCTAD Handbook of stats – 2019, UN World Population Prospects 2019, Dept. of Eco. & Social Affairs, UN
+1,181
+273 -32
+18 +50 -10 -20
6
2.2 Increasing Fibre Demand Per Capita
Historical data on
population growth and
purchasing power
suggests increase in
fibre demand.
6.1 5.7
9.4
6.9
9.7
11.9
7.8
12.2
14.8
World Population (Bn) GDP Per Capita (Current Prices) Th USD Fibre Consumption (Kg/Capita)
2000 2010 2020
+1.1%
+2.4%
+2.2%
CAGR (2010-20)
Source: IMF, World Bank, The Fiber Year, TTS Analysis
7
2.3 Polyester is the mainstay …
• Share of Natural Fibres has been constantly declining.
• Synthetic Fibre will be the mainstay for fulfilling the rising fibre demand.
21
.4
25
.3
26
.0
24
.8
27
.2
29
.6
31
.9
31
.2
39
.4 49
.9 6
3.3
78
.0 9
2.2
10
8.0
52.6
64.7
75.9 88.1
105.2
121.8
140.0 41% 39%
34%
28%
26% 24%
23%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2000 2005 2010 2015 2020 2025 2030
Fibre Consumption (Mn Tons)
Natural Synthetics Total Natural's Share (%)
Natural fbire
Synthetic
Source: Wood Mackenzie Chemicals Report 2018
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S I N G A P O R E
3.0 Africa needs to prepare…
9
3.1 Increasing Trade (Global Textile & Apparel)
• Global Textile & Apparel
trade has reached 817
Bn USD in 2018
• Apparel had the faster
CAGR 2.8% (57%)
• Textile’s growth was
slower at CAGR of 2.1%
Source: UNComtrade Database, TTS Analysis
354 309
341 399 396
430 461
429 422 442 468
283
239
292
347 333
354 356
327 315 329
348 637
548
633
745 729
783 818
756 737
771
817
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Global Textile & Apparel Exports (Bn USD)
Apparel Textile Grand Total
CAGR: 2.1%
CAGR: 2.8%
10
3.2 Africa’s Disproportionately Small Share…
• Africa’s Share of 2.1% in the Global Textile & Apparel Trade is disproportionate to its potential.
• Apparel Export’s CAGR is only 0.8 % , whereas, Textile exports is at a CAGR of 2.5% over the period 2008-18.
• Opportunity is at large for Africa to capture and increase its share in the world trade.
817
17.11
Africa’s Share in the Global T&C Trade in 2018 (Bn USD)
Share: 2.1%
Source: UNComtrade Database, TTS Analysis
10.3 9.5 9.2
10.7 9.5 9.4 9.8
8.6 8.7 9.4 11.2
4.6
4.2 5.7
6.7
6.9 6.4 7.0
5.6 5.3 5.8
5.9
14.9
13.7
14.9
17.4
16.4 15.8
16.7
14.2 14.1
15.2
17.1
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Textile & Apparel Exports (Bn USD)
Apparel Textile Grand Total
CAGR: 0.8%
CAGR: 2.5%
11
10
.31
9.4
6
9.1
8
10
.70
9.4
7
9.3
6
9.7
6
8.6
0
8.7
3
9.3
9
11
.19
0.62
0.53 0.78
0.84
0.81 0.88 0.88
0.86 0.82
0.90
0.89 2.03
1.56 2.41
2.62
3.15 2.70
2.61
2.10 2.24
2.50
2.64 0.50
0.49
0.62
0.67
0.63 0.58
0.58
0.45 0.38
0.42
0.48
1.00
1.20
1.29
1.81
1.51 1.51
2.35
1.69 1.44
1.55
1.45
0.47
0.41
0.62
0.71
0.80 0.74
0.55
0.51 0.44
0.45
0.47
14.92
13.66
14.91
17.36
16.36 15.77
16.74
14.22 14.06
15.23
17.11
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Africa’s Exports (Bn USD)
Apparel Fabric Fibre Made Ups Others Yarn Grand Total
3.3 What is Africa Exporting…
• The Total T&A Exports from
Africa 17.11 Bn USD in 2018
• The CAGR) has been only 1.4%
(2008-18)
• Apparel comprised (65%)
followed by Fibre (15%)
• Africa Exported Fabric Worth
890 Mn USD (5% of the total
exports) in 2018
Source: UNComtrade Database, TTS Analysis
12
3.3.1 Woven Fabric Exports
• Share of the the woven
Fabric (767Mn USD) in
total fabric exports was
86%
• ~55% of the Woven
fabric exports was
cotton woven fabric
amounting to 422 Mn
USD
• The woven fabric exports
grew at a CAGR of 3.6%
310 270
294
413 385 406
401 380
398 464 422
537
486
703
748 738
783 776 751
691
760 767
0
100
200
300
400
500
600
700
800
900
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Woven Fabric Export (Mn USD) Woollen Fabric
Terry Towel
Synthetic SF Fabric
Synthetic FY Fabric
Special WovenFabrics
Silk Fabrics
Other Fabric
Other Artificial FibreProducts
Jute Fabric
Flax Fabric
Cotton Woven Fabric
Cotton - MMF blendfabric
Artificial SF Fabric
Artificial FY Fabric
Grand Total
Source: UNComtrade Database, TTS Analysis
CAGR: 3.6%
13
24 24 25
46 40
54 63
57 52
67 64
82
49
73
92
74
94
109 114
127
144
123
0
20
40
60
80
100
120
140
160
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Knit Fabric Exports (Mn USD)
Wool KnittedFabric
Spandex MixKnitted Fabric
Other KnittedFabric
MMF Knittedfabric
Cotton KnittedFabric
Artificial FibresKnitted Fabric
Grand Total
3.3.2 Knit Fabric Exports
• Knit fabric Exports
from Africa was (123
Mn USD) only
comprising ~ 14% of the
total fabric exports
• Again cotton knit fabric
was the largest export
within knit fabric export
(64 Mn USD)
comprising more than
~52%
Source: UNComtrade Database, TTS Analysis
14
3.3.3 Apparel Exports
• Apparel Comprises of 65%
(11.2 Bn) of the Total African
Exports
Top 3 categories
• Outerwear (2.4 Bn)
• Men’s Bottomwear (2.1 Bn)
• Women’s Bottomwear (1.8Bn)
• Apparel exports has jumped
by more than 19% in the year
2018.
1.8
1.7 1.6 2.0
1.8 1.7 1.7 1.6 1.5 1.6
2.1
1.9
1.9 1.8
2.0
1.9 1.8 1.9
1.6 1.7 1.9
2.4
1.5
1.4 1.3
1.4
1.2 1.2
1.4
1.2 1.2
1.3
1.8
10.3
9.5 9.2
10.7
9.5 9.4
9.8
8.6 8.7
9.4
11.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Apparel Exports (Bn USD) Woven Shirts
Woven Blouses
Women'sBottomwearT-Shirts
Outerwear
Others
Nightwear
Men's Innerwear
Men'sBottomwearLingerie
Knitted Shirts
Knitted Blouses
Activewear
Accessories
Grand Total
Source: UNComtrade Database, TTS Analysis
15
3.4 Leaders in Africa’s Textile & Apparel Exports
3.74 3.72
2.39
1.13
0.67 0.57 0.50 0.46 0.37 0.36 0.33 0.22 0.21 0.17 0.12
Tu
nis
ia
Mo
roc
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Eg
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So
uth
Afr
ica
Ma
uri
tiu
s
Le
so
tho
Mad
ag
ascar
Be
nin
Ke
ny
a
Cô
te d
'Iv
oir
e
Bu
rkin
a F
as
o
Es
wa
tin
i
Eth
iop
ia
Ta
nza
nia
Su
da
n
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Exports Bn USD 2018 Top 15 Exporters of T&A in Africa account for 87% of the total Exports in 2018
Source: UNComtrade Database, TTS Analysis
16
3.5 Africa buys more than it supplies…
• Africa’s T & A Import was 26.1
Bn USD in 2018 having grown at
a CAGR of 3.9%
• Textile Imports growing at
CAGR of 3% during this period
reached 18.9 Bn USD
• Apparel Imports have grown at
a CAGR of 5% (2008-18) to 7.1
Bn USD in 2018
Source: UNComtrade Database, TTS Analysis
4.4 3.5 4.4 5.0 5.4 5.5 6.0 6.2 5.5 5.9 7.1
13.4
11.5
13.5
15.0 15.1 15.6 15.8 15.1
14.1
16.1
18.9
17.9
15.0
17.9
20.1 20.4 21.1
21.7 21.3
19.6
22.0
26.1
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Textile and Apparel Imports Bn USD
Apparel Textile Grand Total
CAGR: 3%
CAGR: 5%
17
3.6 What is Africa Buying…
• Fabric imports of 9.8 Bn USD
comprised the largest share
of imports (38%) in 2018
• Apparel formed the second
largest category of imports
in 2018 (27%) totaling 7.1 Bn
USD
• The year 2018 saw relatively
large increase in imports
compared to recent years,
jumping by more than 18% 4.4 3.5
4.4 5.0 5.4 5.5 6.0 6.2 5.5 5.9
7.1
7.6
5.7
6.3
7.2 7.1 7.2 7.3 7.0
6.8 7.6
9.8 1.2
0.8
1.1
1.4 1.2 1.3 1.3 1.3
1.2
1.3
1.4
0.5
0.7
0.9
0.9 0.9 1.1
1.3 1.1
0.8
0.9
0.9
2.2
2.6
3.4
3.2 3.5 3.6
3.6 3.4
3.3
3.8
4.1
1.9
1.7
1.9
2.3 2.3
2.4 2.3
2.3
2.1
2.4
2.7
17.9
15.0
17.9
20.1 20.4
21.1 21.7
21.3
19.6
22.0
26.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Category wise Imports (Bn USD)
Apparel
Fabric
Fibre
MadeUps
Others
Yarn
GrandTotal
Source: UNComtrade Database, TTS Analysis
18
3.6.1 Woven Fabric Imports
• More Than 80% share of fabric
imports is Woven Fabric (7.9 Bn)
in 2018.
Top 3 categories (in 2018)
• Cotton Woven Fabric (2.5 Bn) 31%
• Synthetic FY Fabric (1.5 Bn). 19%
• Synthetic SF Fabric (1.4 Bn) 18%
• Woven Fabric Imports have seen a
surge of more than 25% in the
year 2018.
34
81
19
69
20
75
23
04
21
03
20
95
19
46
17
42
17
78
18
61
24
91
85
4
75
6 76
8
89
0
96
4
10
53
10
86
11
34
10
76
11
80
14
87
92
9
88
0 10
11
11
58
11
04
10
65
10
70
11
27
10
08
13
29
14
44
6941
5060
5530
6272 6058 6104 6146
5815 5631
6312
7956
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Woven Fabric Imports (Mn USD) Woollen Fabric
Terry Towel
Synthetic SF Fabric
Synthetic FY Fabric
Special WovenFabrics
Silk Fabrics
Other Fabric
Other Artificial FibreProducts
Jute Fabric
Flax Fabric
Cotton WovenFabric
Cotton - MMF blendfabric
Artificial SF Fabric
Artificial FY Fabric
Grand Total
Source: UNComtrade Database, TTS Analysis
19
3.6.2 Knit Fabric Imports
• Knit Fabric imports comprise ~18%
of the total fabric imports in 2018
Top 3 categories
• MMF Knitted Fabric 41%,
• Spandex Mix Knitted Fabric 27%
• Cotton Knitted Fabric 19%
• Knit fabric imports have seen a
jump of more than 38% in 2018.
175 163 169 242 210 189 216 210 205
263
364 172 186
227
299 426 453
471 514 494
530
768
189 167
171
221
221 275
300 318
303
349
512
645 622
721
945
1021
1103
1175 1235
1159
1310
1877
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Knit Fabric Imports (Mn USD)
Wool KnittedFabric
Spandex MixKnitted Fabric
Other KnittedFabric
MMF Knittedfabric
Cotton KnittedFabric
Artificial FibresKnitted Fabric
Grand Total
Source: UNComtrade Database, TTS Analysis
20
3.6.3 Apparel Imports
• Apparel Imports growing at a CAGR
of 5% over the 10 year period
(2008-18)
• Apparel Imports comprise 27% of
the total imports in 2018
• Top 3 slots
• Outerwear (1.9 Bn), 27%
• Men’s Bottomwear (0.9Bn) 13%
• Women’s Bottomwear (0.7Bn) 10%
• Apparel Imports saw a surge of
more than 22% in 2018.
52
9
37
4
51
3
58
9
63
4
64
0
71
7
76
2
72
2
79
1
92
2
98
1
68
1 8
27
10
41
12
24
12
20
12
80
13
70
12
40
13
39
19
63
287
243
432
429
428 447
481
501
473
511
685
4406
3480
4449
5041
5364 5532
5959
6232
5464
5895
7148
0
1000
2000
3000
4000
5000
6000
7000
8000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Apparel Imports (Mn USD) Woven Shirts
Woven Blouses
Women'sBottomwearT-Shirts
Outerwear
Others
Nightwear
Men's Innerwear
Men'sBottomwearLingerie
Knitted Shirts
Knitted Blouses
Activewear
Accessories
Grand Total
Source: UNComtrade Database, TTS Analysis
21
3.6.4 Used Clothing Imports
• Used Clothing Import has
been growing in Africa
rising at a CAGR of 6.7%
over the 10 year period
(2008-18).
• In 2018 used clothing
import was a 1.31 Bn USD
0.69
0.81 0.83
0.94
1.04 1.07
1.13
0.97
1.09
1.19
1.31
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Used Clothing imports (Bn USD)
Source: UNComtrade Database, TTS Analysis
22
4.38
3.68 3.37
2.18
1.85
1.02 0.83 0.83
0.68 0.59 0.59 0.50 0.47 0.37 0.37
Eg
yp
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Mo
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So
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Afr
ica
Tu
nis
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Alg
eri
a
To
go
Ke
ny
a
Eth
iop
ia
Lib
ya
Su
da
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Ma
da
ga
sc
ar
Dji
bo
uti
Nig
eri
a
Ma
uri
tiu
s
Ca
me
roo
n
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Imports Bn USD 2018
4.7 Africa’s Top Importers
• Top 15 Importers of T&A in Africa account for 82% of the total Imports
Source: UNComtrade Database, TTS Analysis
23
4.8 Supply Gap Within Africa
Africa’s Total Demand (Current and Estimations)
Source: Wood Mackenzie Chemicals Report, 2018, USDA, Global Cotton Outlook 2016/17 – 2026/27, International Center for Agricultural Competitiveness, TTS Analysis
Year Africa
Population (Mn)
Fibre Demand Per Capita (Kg)
Total Demand
(Mn Tons)
Total Production (Mn Tons)
Supply Gap (Mn Tons)
Additional Spindles Required
(Mn)
Additional Looms
Required(Mn)
2019 1308 5.8 7.59 1.46 6.12 ~ 43 ~0.8
2025 1508 6.2 9.35 1.70 7.65 ~ 54 ~1
Cotton Acrylics, Nylon & Polyester *
Year Fibre
Demand Per Capita (Kg)
Total Demand
(Mn Tons)
Total Production (Mn Tons)
Supply Gap (Mn Tons)
Fibre Demand Per Capita (Kg)
Total Demand* (Mn Tons)
Total Production (Mn Tons)
Supply Gap (Mn
Tons)
2019 1.7 2.22 1.35 0.87 4 5.23 0.11 5.12
2025 1.7 2.56 1.55 1.02 4.4 6.64 0.15 6.49
* Wool demand included, but not shown separately.
In 2019
• Fiber Demand 7.59 Mn Tons
• Production 1.46 Mn Tons,
• Potential gap 6.12 Mn Tons
In 2025
• Estimated demand 9.35 Mn Tons
• Production increase 1.7 Mn Tons,
• Potential gap 7.65 Mn Tons
Shortage
in 2019. in 2025
~43 Mn spindles, ~54 Mn spindles
~0.8 Mn Looms ~1 Mn looms
@
S I N G A P O R E
4.0 Strategy: Prepare the Ground for Growth
25
4.1 Broad Strategy for Africa
With the promising domestic
market Africa must strengthen
its domestic industry
Since Cotton is locally available,
its supply chain should be
nurtured to feed the
downstream activities and add
value
Besides focusing on the existing
cotton, the polyester value
chain should also be shaped as it
is the dominating fiber for
several blends
Serve Africa First Followed by
exports
1
Strengthen Value chain for Cotton
2
Shape up the Polyester Value
Chain
3
26
4.2 Strategic Steps
The policy makers in Africa need to approach the situation
with a three pronged action.
• Policy Framework to attract not only FDI but also
encourage domestic entrepreneurs
• Public Spending in Infrastructure development is a
must
• African Govts must enter into MoUs with all
possible sources to fast track the learning curve
Strategy
Policy framework
Infrastructure
Know-how transfer
27
4.2 Strategic Steps (Contd..)
• Governments need to take strong policy decisions in order to prepare the ground work for the industry to take strong roots.
Policy Framework
For attracting Domestic & Foreign Investment
Setting up of Special Economic Zones
Improvement in ease of doing business
Infrastructure
Connectivity to raw material hubs, ports etc.
Reliable power at globally competitive rates
Complementary Capabilities (Such as Cotton Production, Institutional support for skill
development)
Know-how transfer
Factory level know-how transfer from International development
bodies and consultants
Technology transfer from international joint ventures
Adaptation of international best practices in supply chain
management (e.g. Cotton Classing and procurement)
@
S I N G A P O R E
5.0 Industry Productivity Gap (Africa Vs World’s Healthy Level)
29
5.1 Plant Utilization & Efficiency (Africa Vs The Global Healthy Level)
Parameters Spinning Weaving Knitting
Utilization %
(Healthy Level)
50-60%
(95%)
55-65%
(92%)
40-50%
(80-85%)
Production Efficiency %
(Healthy Level)
80-90%
(92-94%)
55-75%
(85%)
60-80%
(90-92%)
Source: TTS database & Analysis
30
5.2 Spinning Productivity (Africa Vs The Global Healthy Level)
Parameters Spinning (30s Ring)
Healthy level
Utilization % 50-60% 95%
Production Efficiency % 80-90% 92-94%
Yarn realization % 80-85 85-88
Production in gms / Spindle / 8Hours GPS (Grams / Spindle) 170 210
Quality Standards (Uster Standards%) 25 5
Power – Units per Kilogram of Yarn Production UKG (Units / Kg) 3.2-3.6 3.0
Men Employed / 1000 Spindles / Day (50,000 Spindles – Auto Doffing Auto coner – Round Magazine Technology)
15 12
Source: TTS database & Analysis
31
5.3 Weaving Productivity (Africa Vs The Global Healthy Level)
Parameters Weaving
(200 CMS Cotton Sheet) Healthy Level
Utilization % 55-65% 92%
Production Efficiency % 55-75% 85%
Warping breaks / Million Meters 3-10 0.5 - 1
Warping Efficiency. % 30-60 60 - 65
Sizing Efficiency. % 30-60 60 - 65
Utilization % 50-65 90 - 95
Prodn. Efficiency % 50-75 80-90
Warp breaks / CMPX (Centi-Million Picks) 10-25 2.5 - 3
Weft breaks / CMPX (Centi-Million Picks) 10-15 2 – 2.5
Hard Waste % 3-5 2.5 - 3.0
A Grade Fabric (Woven) % 85-95 97 - 98
Power – Units / Meter 0.7-0.8 0.6 - 0.65
Men / Loom day 1-1.5 0.8 - 1
Source: TTS database & Analysis
32
5.4 Knitting Productivity (Africa Vs The Global Healthy Level)
Parameters
Knitting (140 Gsm – Single Jersey)
Healthy Level
Utilization % 40-50% 80–85 %
Prodn. Efficiency % 60-80% 90-92 %
A Grade Fabric (Knitted) % 90-95 97 - 98
Rejection % 0.3-0.5 0.3 - 0.5
Holes / 20 Kgs 5-20 2 - 3
Needles Consumed / 100 Kgs 2-3 0.5 - 1
Power – Units / Kg 0.4-0.6 0.4 - 0.5
Men / machine/ shift 0.8-1.5 0.3 - 0.5
Source: TTS database & Analysis
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5.5 Reasons for the Productivity Gaps
Reasons for the current productivity gaps are many, some of which are • Historical
• Isolation from rest of the world in industrialization. • Historically Africa has lagged behind the world in industrialization but the call for change never never been louder before.
• Structural
• Non formal/unorganized agricultural sector • Weak commodity trade. • Achieving manufacturing competitiveness has hardly been a priority.
• Political
• Constantly changing Political landscape • Industrialization has always taken backstage in the continent’s quest for stability.
• Lack of competition in initial phases of industry
• The quota based market access enjoyed by the African countries • Shielding the African industry from the global competition, • Limited ability to develop competitiveness.
6.0 Operational Excellence
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6.1 Operational Excellence Steps…
• Africa enjoys preferential access to major textile
and apparel markets
• However, as it ss evident, these measures
(though necessary) have not helped African
Industry build capacity and gain market share
• There is no substitute to operational excellence
& developing competitiveness, if industry wants
to remain and hold its ground on the global stage
Operational Excellence
Achieve Competitive edge
Adopting Best Management Practices
Developing Management Systems that ensure customer trust
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6.1 Operational Excellence (Contd…)
While sops such as govt. incentives, subsidies, preferential market access are good for a jump-start, industries
will survive only if powered with competitive advantage.
Competitive edge
Improved utilization
Improved Labour Productivity
Improved Machine Efficiency
Best Management Practices
Improved Planning
Improved Control
Performance based Incentives
Gaining Customer Trust
Through Improved Quality Assurance
Through Improved Service Levels
And Improved Lead times and Delivery commitments
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6.2 Operational Challenges
Some common operational challenges observed in the African Value Chain in general and Ethiopian Value Chain in particular are:
Low Capacity Utilization Old Equipment
Spare Parts Shortage
Working Capital Shortage
Sub-optimal Maintenance Practices
Inadequate Supply of Cotton
Low Quality at most of value chain
Deficiencies in Planning process
Frequent Power Failure Lack of Personal and Management Skills
Synthetics fibre Shortage
Lack of Maintenance Skills
Due to a host of reasons identified as above and others, African Industry has been performing at sub-optimal levels…
Texcoms Textile Solutions
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About Texcoms Textile Solutions
Texcoms Textile Solutions is the leading consulting firm in the textiles sector, assisting manufacturers from the last decade. The nature
of these assignments, bringing in savings by business process reengineering (BPR) in order to improve overall effectiveness.
The Services include:
Capability Building Through Benchmarking & Rehabilitation
Turnkey Project Management Solutions
Management Contract
Plant Re-location Services
Strategy & Feasibility Modelling
Investor Services
i-SMART Factory Solutions
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Our Services that help the Industry gain operational excellence…
Capability Building through
Benchmarking & Rehabilitation
Identification of performance gap.
against ‘Industry Standards’
Remedial measures, with guaranteed
outcomes and targets
Ingraining the implementation
methodologies in factory’s
management system (SOPs & WI) and
people (Skill-Development)
Operation Management
TTS is well placed to assist clients in
their operations
TTS manages plant operations
ensuring efficient functioning with
improved productivity and quality
KPIs.
The engagement involves managing all
functions and assuring agreed targets-
Financial & Operational KPIs
Build Operate Transfer
A plant designed with robustness and
future-ready provisions is ahead of its
competition by nature
TTS assists clients from ‘Concept to
Commissioning’ of plant
A smooth transition of management is
carried out ensuring the critical know-
how and operational intelligence is
effected
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A word about TTS TIMES– Textile Industry Manufacturing Excellence Standards
TIMES is an initiative by TTS to benchmark industry KPIs against the Industry Standards.
Indicators for the following segments are covered under TTS TIMES
1. Spinning 2. Weaving 3. OE Spinning 4. Polyester 5. POY – (Partially Oriented Yarn) 6. DTY – (Draw Texturized yarn) 7. FDY – (Fully Drawn Yarn) 8. PSF – (Polyester Staple Fibre) 9. Knitted Fabric 10. Processed Fabric / Yarn 11. EBITDA Levels for the Industry
@
S I N G A P O R E
203, Henderson Road, #12-11 Wing
B, Singapore 159546 www.texcoms.com/tts/
Copyright © 2020 Texcoms Textile Solutions. All rights reserved.
K. Arivarasu
+251 90 246 2642
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