Alem gemechu (1)

ADDIS ABABA UNIVERSITY
FACULTY OF TECHNOLOGY
SCHOOL OF GRADUATE STUDIES
DEPARTEMENT OF MECHANICAL ENGINEERING

QUALITY IMPROVEMENT IN ETHIOPIAN GARMENT
INDUSTRIES

By: Alem Gemechu

Advisor: Dr.-Ing. Daniel Kitaw

Co-Advisor: Ato Amare Matebu

A thesis submitted to the School of Graduate Studies of Addis Ababa University in
partial fulfillment of the Degree of Masters of Science in Mechanical Engineering
(Industrial Engineering Stream)

September, 2009

Quality improvement in Ethiopian garment industries

Addis Ababa University

School of Graduate Studies

Faculty of Technology

Mechanical Engineering Department

QUALITY IMPROVEMENT IN ETHIOPIAN GARMENT INDUSTRIES

By: Alem Gemechu

Approved by board of examiners

______________________________ ______________ ___________
Chairman, Department Signature Date
Graduate committee

____Dr.-Ing Daniel Kitaw_________ ______________ ___________
Advisor Signature Date

_____Ato Amare Matebu_________ ______________ ___________
Co-Advisor Signature Date

______________________________ ______________ ___________
Internal Examiner Signature Date

______________________________ ______________ ___________
External Examiner Signature Date

By: Alem Gemechu Page ii


DECLARATION

I hereby declare that the work which is being presented in this thesis entitled,
“QUALITY IMPROVEMENT IN ETHIOPIAN GARMENT INDUSTRIES” is
original work of my own, has not been presented for a degree of any other university and
all the resource of materials uses for this thesis have been duly acknowledged.

_______________________ _________________

Alem Gemechu Date

This is to certify that the above declaration made by the candidate is correct to the best of
my knowledge.

_______________________ _________________

Dr.-Ing Daniel kitaw Date

_______________________ _________________

Ato Amare Matebu Date

By: Alem Gemechu Page iii


ACKNOWLEDEMENT
With sincerity, I extend my warm and deep appreciation and gratitude to my advisor, Dr.-
Ing. Daniel Kitaw and my co-advisor Ato Amare Matebu for their unreserved guidance
and support to come up with this research work. Above all, I praise the Almighty Father
and Lord Jesus Christ who gave me His enabling grace to successfully complete this
research work within the given time. I would also like to thank all who responded to my
questionnaires and interviews, which helped me in coming up with this research. Finally,
I thank my father Dr. Gemechu Demissie, my mother Sr. Dinknesh Admassu and my
husband Ato. Chanyalew Taye for their continuous support, ideas and love during my
studies.

By: Alem Gemechu Page iv


ABSTRACT

This research work makes an assessment on quality related problems in Ethiopian
garment industries in order to develop an applicable quality improvement model so that
the overall performance of the sector can be improved. A brief introduction is given on
the fundamental concepts of quality with reference to recent literature in the area so as to
help readers follow the model developed. To undertake this research, a sample size of 11
garment industries representing 40% of the total garment industries in the country was
taken considering the expected response rate, requirements for performing statistical
analysis, available time and survey cost. Moreover, the selected garment industries
produce different ranges of garment products in the country. Primary and secondary data
were collected and analyzed to indentify quality-related problems of the sector using a
well structured questionnaire, interviews, personal observations and review of previous
research works. Then a quality improvement model is developed along with primary
steps to implement the model to attain the goal. Finally, a number of recommendations
are given for the garment industries. This paper can be used as a lead for future research
works in the field.

By: Alem Gemechu Page v


TABLE OF CONTENTS
ACKNOWLEDEMENT ........................................................................................................iv
ABSTRACT............................................................................................................................ v
TABLE OF CONTENTS.......................................................................................................vi
LIST OF FIGURES ............................................................................................................ viii
LIST OF TABLES .................................................................................................................ix
LIST OF ACRONYMS .......................................................................................................... x
1. INTRODUCTION .......................................................................................................... 1
1.1. Research Background ......................................................................................... 1
1.2. Problem Statement .............................................................................................. 4
1.3. Research Objective ............................................................................................. 7
1.4. Significance of the Study .................................................................................... 8
1.5. Scope of the Research ......................................................................................... 9
2. LITERATURE REVIEW ............................................................................................. 10
2.1. Evolution of Quality ......................................................................................... 10
2.1.1. Inspection .................................................................................................... 11
2.1.2. Quality Control ........................................................................................... 12
2.1.3. Quality Assurance ....................................................................................... 12
2.1.4. Total Quality Management ......................................................................... 12
2.1.5. State of the Art ............................................................................................ 13
2.2. Quality Standards .............................................................................................. 15
2.3. Quality Improvement ........................................................................................ 16
2.4. Quality Costs..................................................................................................... 19
2.5. Self Assessment ................................................................................................ 20
2.6. Garment Production Process ............................................................................. 21
3. METODLOGY, DATA COLLECTION AND ANALYSIS........................................26
3.1. Methodology ..................................................................................................... 26
3.1.1. Survey Questionnaire .................................................................................. 27
3.1.2. Structured Interviews .................................................................................. 28
3.1.3. Direct Observation ...................................................................................... 28
3.2. Data Collection and Analysis ............................................................................ 28

By: Alem Gemechu Page vi


3.2.1 Gap Analysis ............................................................................................... 33
3.2.2 Benchmarking ............................................................................................. 37
3.2.3 COQ in NovaStar Garment PLC................................................................ 38
3.2.4 Application of SQC tools in NovaStar garment PLC ................................. 41
4. PROPOSED QUALITY IMPROVEMENT MODEL .................................................. 50
4.1. Leadership ......................................................................................................... 51
4.2. Supplier Improvement ...................................................................................... 52
4.3. Self Evaluation .................................................................................................. 53
4.4. Garment Design ................................................................................................ 55
4.5. Quality Control ................................................................................................. 57
4.6. Education and Training ..................................................................................... 58
4.7. Customer Focus ................................................................................................ 59
5. CONCLUSION AND RECOMMENDATION ............................................................ 65
5.1 Conclusion .............................................................................................................. 65
5.2 Recommendation .................................................................................................... 66
REFERENCES ..................................................................................................................... 68
APPENDIX 1 ........................................................................................................................ 71
APPENDIX 2 ........................................................................................................................ 74
APPENDIX 3 ........................................................................................................................ 79

By: Alem Gemechu Page vii


LIST OF FIGURES

Fig. 1. 1 Distribution of Ethiopian garment industries by first reason for operating at part
load capacity in year 2007 [6] ..................................................................................... 7

Fig. 2. 1 Quality Evolutions [15] ...................................................................................... 11
Fig. 2. 2 Development process of Six Sigma in quality management [17] ...................... 13
Fig. 2. 3 Quality and Competitiveness [19] ...................................................................... 17
Fig. 2. 4 Deming’s PDCA cycle [21]................................................................................ 17
Fig. 2. 5 The European quality award model [15] ............................................................ 21
Fig. 2. 6 Garment production process [25] ....................................................................... 23

Fig. 3. 1 Obstacles to improve quality in the companies .................................................. 29
Fig. 3. 2 Cause of poor quality products in the companies ............................................... 30
Fig. 3. 3 Pareto analysis for quality related problems in the companies .......................... 31
Fig. 3. 4 Performance gap of Ethiopian garment industries with best practice country ... 38
Fig. 3. 5 Percentage of quality cost elements in NovaStar garment PLC ......................... 40
Fig. 3. 6 Pareto diagram of defective shirts ...................................................................... 43
Fig. 3. 7 u-chart for the number of defects per shirt ......................................................... 46
Fig. 3. 8 Pareto diagram of defective shirts of day 1 ........................................................ 48
Fig. 3. 9 u-chart after significant causes during day1 is avoided. ..................................... 49

Fig. 4. 1 Supply chain of textile and garment sector ........................................................ 53
Fig. 4. 2 Inspection loop ................................................................................................... 57
Fig. 4. 3 Quality improvement model for Ethiopian Garment Industries ......................... 60
Fig. 4. 4 Quality improvement implementation model for Ethiopian Garment Industries64

By: Alem Gemechu Page viii


LIST OF TABLES
Table 2. 1 Apparel manufacturing Methods [26].............................................................. 25

Table 3. 1 Qualitative interpretation of questions............................................................. 34
Table 3. 2 Preliminary Gap Analysis for ISO 9001: 2000 ................................................ 34
Table 3. 3 Analysis table ................................................................................................... 36
Table 3. 4 Benchmarking of Ethiopian garment industries [12]....................................... 37
Table 3. 5 Estimated COQ in NovaStar garment PLC ..................................................... 40
Table 3. 6 Types and number of defects (day 1-15) ......................................................... 41
Table 3. 7 Types and number of defects (day 16-31) ....................................................... 42
Table 3. 8 Data sheet for pareto diagram .......................................................................... 42
Table 3. 9 Data sheet for the construction of u-chart for defective shirts......................... 45
Table 3. 10 Evidence of causes of variations in the u-chart ............................................. 47
Table 3. 11 Determination of the causes of variation in day 1 ......................................... 47

Table 4. 1 COQ of Ethiopian garment industries ............................................................. 55

By: Alem Gemechu Page ix


LIST OF ACRONYMS

AATCC- American Association of Textile Chemists and Colorists
AGOA-African Growth Opportunity Act
ASTM- American Society for Testing and Materials
CAD- Computer Aided Design
CAM- Computer Aided Manufacturing
CMT-Cut-Make-Trim business
COQ- Cost of Quality
CSA- Central Statistics Agency
EBA- Everything But Arms
EFQM- European Foundation for Quality Management
EQA- European Quality Award
FDI- Foreign Direct Investment
FOB- Free On Board
GSP- Generalized System of Preferences
ISO- International Standards Organization
LDC- Least Developed Countries
MBNQA-Malcolm Baldrige National Quality Award
PCDA-Plan-Do-Check-Act
QC-Quality Control
QFD- Quality Function Deployment
QMS- Quality Management System
SPC- Statistical Process Control
TQM- Total Quality Management
WRAP- Worldwide Responsible Apparel Production Principles

By: Alem Gemechu Page x


1. INTRODUCTION
1.1. Research Background

The globalization of the market and the rapid improvements in information flow has
made competition in manufacturing industries to be fierce worldwide. As a result,
industries such as the garment industry are facing the greatest challenge in history
because of the rapidly changing business environment with respect to global competition,
market performance, and changing technology [1].

Garment is a fashion product that is influenced by social trends and global economic
environments. The garment industry has specific market characteristics, such as short
product life cycle, high volatility, low predictability, and a high level of impulse purchase,
making quick response of paramount importance [2].

In today’s world, garment industries make a significant contribution to many national
economies especially in the developing world. Many countries are exploiting this
industry for reasons of economic growth. The high amount of labor involved in garment
production has caused garment producers to seek locations with lower wage employees
for reduced production costs. Garment producers in developing countries have labor-cost
advantages compared to industrialized countries [1]. Because of its large labor pool
(Central Statistics Agency estimated to be above 30 million persons in 2005), Ethiopia
has a comparative advantage in producing garment. The increased salary levels in Asian
countries, closing of factories particularly in China and dissatisfaction of EU and US
importers provide an opportunity for new entrants such as Ethiopia into the global market
[3].

Ethiopia has a long history for traditional garment manufacturing, which is endowed with
profound national culture up to this date. Cottage industries have been the main style for
traditional garment and have satisfied the demand of the people for centuries. The
industrialization process of Ethiopia’s garment manufacturing started in the 1950’s. In
1958, an Italian took the lead to establish the Addis garment factory, which was
nationalized in 1975. The public Akaki garment factory was founded in 1963, followed

By: Alem Gemechu Page 1


by the Gulele garment factory in 1983 and the Nazereth garment factory in 1992. These
four state-owned garment factories have dominated Ethiopia’s garment sub-sector for a
long time [4]. At present, the garment sector consists of only 2.22 % of the country's
manufacturing industries.

Currently, there are 28 garment factories and 17 more are on project phase [3]. 22 of the
existing garment factories are located in the capital, Addis Ababa [6]. These industries
produce different kinds of attires including uniforms, work wears, knit wear products like
sports wear, under wears, polo shirts, clothing products and suits. Ownership structure of
Ethiopian garment industries is a mixture of diversified ownerships including public,
share company, private limited company, partnerships and individual ownership.

The Ethiopian government has defined the textile and garment sector as a top priority
sector in the industrial development package of the country. This is because textile and
clothing market is always demanded next to food commodities. The sector also utilizes
more labor which is available abundantly at low cost in the country. The garment sector
has a large potential for creating employment opportunities. The sector has strong vertical
linkages with the textile industry that have the potential to increase the development of
agriculture. It has a vast potential to manufacture goods for export, thus earning highly
demanded foreign exchange [5].

Recently the Ethiopian garment sector has opportunities in the global market such as
African Growth Opportunity Act (AGOA) giving quota and duty free access to the USA
market for sub-Saharan African countries [7]. However, Ethiopia has been exporting a
limited quantity of garments to the world market. Out of the total 1.4 billion USD dollars
earned from the export of goods in the year 2007, textile and garment export is only 1%
having a small impact on national revenue [6]. This shows that the country did not
succeed in making use of this valuable opportunity. The Ethiopian garment industry is
still at its infancy stage even when compared to that of other developing countries. It is
unable to compete in the global market due to inability to produce quality products.

The quality of garment products is associated with the extent to which it satisfies the
consumer’s needs. Quality of garment products have two dimensions, namely, a physical



dimension, specifying what the garment item is and a behavioral dimension indicating
what the item can achieve [ 8]. Physical characteristics include the intrinsic factors of the
item such as the design, textile construction and finishes that cannot be changed without
changing the item itself. The behavioral characteristics of apparel products can be divided
into functional as well as aesthetic behavioral characteristics. Functional behavioral
characteristics refer to properties such as the durability and comfort of the item. Aesthetic
behavioral characteristics refer to the prettiness or aesthetic experience that the apparel
item can bring about, whether sensory level, emotional, or cognitive.

According to David Garvin, a Harvard expert on quality, there are eight dimensions of
quality: performance, features, reliability, conformance, durability, serviceability,
aesthetics and perceived quality [9]. Another commonly used definitions of quality that
originated from one of the quality pioneers; Juran uses the idea of fitness for use. Fitness
for use should be judged from the customer’s point of view and not from either the
manufacturer’s or seller’s perspective. This concept can be applied for garments as well.
For a garment to be fit for use, provided that the style is acceptable it must be [10]:

• Free from defects such as stains, fabric defects, open seams, untrimmed threads,
misaligned buttons and buttonholes and defective zippers
• Fit properly for the labeled size
• Perform satisfactory in normal use, meaning that a garment must be able to
withstand like normal laundering, dry-cleaning, pressing cycles without color
loss or shrinkage. Seams must not come apart and fabric must not tear

Customer needs are a moving target and it is widely recognized that quality goals must
keep shifting to respond to the changes that keep coming over the horizon [11]. As a
result, continuous improvement of quality is needed in the garment industry since there is
competition pressure.



1.2. Problem Statement

Ethiopia did not use the advantage of its large labor pool in the garment sector because of
quality problems. The reasons for these are manifold, and extend vertically through the
supply chain from poor quality raw materials to poor finishing. There are external and
internal factors that can directly or indirectly affect the quality of Ethiopian garment
industries. The external factors are those which are beyond the control of the individual
garment industry while the internal factors are those within its control.

External Factors

The Ethiopian government has declared to give the textile and garment sector a priority
area for industrial development and export. During the past years, the government has
already intervened in support of the sector in order to make it competitive in the global
market. Expectations have been high, but have not been fulfilled so far by the industry [3].
Despite many well-intended efforts of the government, Ethiopian garment industries
posses many challenges on the external environment.

The absence of significant backward linkages of domestic suppliers is the major negative
feature of the Ethiopian garment industry. This not only concerns fabric, but also most of
the accessories that are required. Currently, there are limited accessories manufacturing
factories in the country for the garment sub-sector [3]. Accessories needed in garment
manufacturing such as buttons, zippers, lacework and liner cloth have to be imported.
The quality of the Ethiopian garment industries is further hindered by the poor quality of
fabric produced by the local textile industries. Most of the domestic fabric available to
the apparel manufacturers is of poor quality. Garment industries deal with this issue by
importing textiles, which is time consuming and increases lead time of order fulfillment.
The garment industries are affected even more dramatically as high duties prevent them
from importing high quality fabric.

The other problem is the lack of exposure to foreign best practice (FDI) which has a
significant impact on quality in Ethiopian garment industries. The FDI market can boost
labor skills, transfer technology and thereby increases quality of products. Ethiopia did



not have the opportunity to gain much exposure to foreign best practice methods. There
has been very little FDI especially in the garment sector. The major reasons that are
considered to be deterrent to FDI are the unavailability of quality fabric in the country.
All things being equal, an investor will choose to produce in a country with readily
accessible supply of textiles to cut down turn-around-time and minimize problems with
customs clearance. Also, poor infrastructure limits Ethiopian garment industries’
exposure to foreign best practice. The lack of foreign investment in the apparel sector is
an enormous hindrance to competitiveness in the global market.

Furthermore, the existing textile and garment training institutions also do not have the
capacity to give adequate skill upgrading training which have drawbacks on workers’
performance.

Internal Factors

There is a large gap between customer requirement and the products of the Ethiopian
garment industries. The degree of communication with the customers to understand their
requirement and translating into products is not satisfactory. Customers do not involve in
product development which results in poor quality products that will ultimately affect the
market share and profitability of the sector.

Most of the Ethiopian garment industries have a short-term view on business which
focuses on quantity and profit rather than quality. Quality is regarded as a technical issue
managed by the quality department. Because of poor management commitment on
quality, most of the garment industries don’t have a culture to support total employees
involvement in quality improvement. Thus quality vision, mission, documentation
systems and relative measures do not exist.

These companies spend most of their time in detecting the defects of the products rather
than preventing the defects. As a result, the quality control activities are inspection-based
rather than prevention-based. Even the existing inspection techniques are visual methods
which are not effective. There is also no awareness and application of statistical process



control tools. As a result, the industries are not able to continuously monitor their
processes and determine whether the processes are in or out of control.

Most of Ethiopian garment industries don’t have self evaluation activities such as cost of
quality, quality audit, employee's performance and satisfaction evaluation, and
benchmarking. Therefore, the existing problems are not identified and not solved. The
sector cannot achieve lessons on how best-in-class competitors perform and improve
their quality. As a result, the sector is lagging behind international competitors.

Majorities of Ethiopian garment industries are not strong financially and do not have
funds to invest in personnel training and purchase of modern equipments. Since the level
of automation of the machines used is very low, the operators need to perform more
actions resulting in higher work content. Therefore, the quality of the finished product
depends more on the skill of the operators. Due to poor skill of operators, the probability
of defects is greater and the need for re-working garments is higher. As a result, the
industries are forced to incur additional cost because more inspectors are required to
identify the defects.

Today, while advanced garment processing equipments such as automatic cutting
machines, computer controlled lock-stick sewing machines, virtual garment system and
stereo iron-ordering machines are widely used in overseas garment factories, most of the
Ethiopian garment factories are still using medium speed lockstitch sewing machines and
overlook sewing machines. Most of them also lack CAD/CAM system, spreading
machines, centralized steam system which help to increase quality and productivity. The
absence of embroidery machines and adequate washing and drying facilities further
hinders customer satisfaction.

The garment industries are also impacted by the supply of poor fabric and accessories
from external suppliers as well. There is minimum flow of information and cooperation
with external suppliers. The major criterion for purchasing raw materials is based on
price rather than quality. Ethiopian garment industries do not use any mechanism to
evaluate raw material suppliers prior to shipment.


Quality improvement in Ethiopian g ustries
garment indu

Poor working con
nditions in E
Ethiopian ga
arment indus
stries contrib to high t
bute turn-over an
nd
nteeism rates These resu in unskill operators to do speci
absen s. ult led s ialized jobs which reduc
ce
qualit and produ
ty uctivity. In g
general, the productivity of the Ethi
y iopian garme industrie
ent es
is also low. Produ
uctivity of a worker in c
case of mediu complex T-shirt is 1T-shirt pe
um xity er
15 m
minutes wher as in Rom
re mania and Tu
urkey produ
ucing the sam T-shirt ta
me akes only 5.
.6
and 6 minutes respectively [12].
6.4 r

Due t the above mentioned problems, t Ethiopia garment industries ca
to e d the an annot face th
he
dema required by the export markets. According to Central S
and d . Statistics Ag
gency (CSA
A),
the r
reasons for these indust
tries for operating at p
part load ca
apacity in year 2007 ar
re
descr
ribed in Figu 1.1
ure

No stated
ot
Others 14%
4% Shortag of
ge
Absen of
nce supply o raw
of
credit facility
f materiials
14% % 43%%

Absence of
market demand
m
25%

Fig. 1. 1 Distribu
ution of Ethi
iopian garme industrie by first rea
ent es ason for operating at par
rt
load capaci in year 2007 [6]
ity

1.3. Research Objectiv
h ve

The m
main objecti of this s
ive study is to c
critically exa
amine and id
dentify quali associate
ity ed
probl
lems in Ethio
opian garmen industries and develop an appropri and appl
nt p iate licable qualit
ty
impro
ovement mod to improv the overall performan of the sec
del ve nce ctor.



Furthermore, the research targeted to achieve the following specific objectives:

• Develop a conceptual understanding about quality and show the need for quality
improvement in Ethiopian garment industries
• Critically examine and identify the quality associated problems of the sector
• Perform a gap analysis with respect to ISO 9000 system
• Identify the potential areas for improvement
• Propose appropriate measures to improve the quality of products

1.4. Significance of the Study

In recent years the Ethiopian government has implemented a raft of economic reforms to
boost the economy of the country. Privatization and tax incentives have helped Ethiopia
to achieve 10% annual growth across all sectors over the past five years and 32% growth
in exports in the past year [5]. Exports of textiles and clothing, primarily to Europe and
the United States increased only by US$ 1.6 million, from US$ 11 million in 2005/2006
to US$ 12.6 million in 2007/08. However, this figure is below the expectations, which
should have reached US$500 million [6]. To encourage investors, the Ethiopian
government is waiving taxes for both exports and the import of raw materials and
machinery. Despite such incentives, Ethiopian garment industries cannot compete in the
global markets because of poor quality products. Compared to other developing countries,
like China, Ethiopia is lagging behind in quality, especially in the garment sector [5].

Therefore, there is a need for in-depth study to improve the quality of the Ethiopian
garment sector. Unfortunately, only limited numbers of researches have been done at
national level on quality-related topics in Ethiopian garment industries. This study aims
to identify the quality related problems of Ethiopian garment industries and propose
appropriate implementation model. The research has a great benefit to overcome the
stated quality problems so that the sector can be competitive in the global market. It is
hopefully believed that the Ethiopian garment industries will implement the model and
have a remarkable improvement. Government bodies such as Ministry of Trade and



Industry, Quality and Standard Authority of Ethiopia and other interested sectors can also
draw important concepts out of the study.

1.5. Scope of the Research

This research work makes an assessment on quality related problems in selected 11
Ethiopian garment industries (which represent 40 % of the total garment industries in the
country) and provides concrete and applicable solutions. An applicable quality
improvement model is developed so that the overall activities of the industries can be
improved and the sector can be competitive in the global as well as domestic market.



2. LITERATURE REVIEW

2.1. Evolution of Quality

The quality movement can trace its roots back to medieval Europe, when craftsmen
began organizing into unions called guilds in the late 13th century [13]. In the early
1950’s, quality management practices developed rapidly in Japanese plants, and become
a major theme in Japanese management philosophy, such that, by 1960, quality control
and management had become a national preoccupation. By the early 1970’s Japan’s
imports into the USA and Europe increased significantly, due to its cheaper, higher
quality products, compared to the Western counterparts. The quality revolution in the
West was slow to follow, and did not begin until the early 1980’s, when companies
introduced their own quality programs and initiatives to counter the Japanese success [14].

Since the turn of the century quality improvement has matured significantly. New quality
systems have evolved from the foundations of Deming, Juran and the early Japanese
practitioners of quality, and quality has moved beyond manufacturing into service,
distribution, healthcare, education and government sectors. During the last three decades,
simple inspection activities have been replaced or supplemented by quality control,
quality assurance and now most companies are working towards Total Quality
Management (TQM) [15]. In this progression, four fairly discrete stages can be identified:
inspection, quality control, quality assurance, and TQM as shown in Figure 2.1.



Fig. 2. 1 Quality Evolutions [15]

2.1.1. Inspection

At one time inspection was thought to be the only way of ensuring quality. Inspection
with reference to the garment industry can be defined as the examination or review of
raw materials (like fabric, buttons, zippers and sewing threads), in-process components
and completely finished garment in relation to some standard specifications, or
requirements. The inspection activity can be carried out by staff employed specifically
for the purpose or by self-inspection. Products which do not conform to specification may
be scrapped, reworked, modified or passed on concession. In some cases inspection is
used to grade the finished product. The system is an after-the event screening process
with no prevention content. Simple inspection based systems usually do not directly
involve suppliers or customers in the activity.



2.1.2. Quality Control

Quality control is concerned with the operational techniques for detecting, recording, and
taking actions to eliminate quality problems. Quality control focuses on finding and
eliminating sources of defects and monitoring the manufacturing process. With quality
control there is some development from the basic inspection activity in terms of the
sophistication of methods, systems, tools and techniques employed. While the main
mechanism for preventing off-specification products and services from being delivered to
a customer is again screening inspection. Quality control measures help increase process
control and to lower incidence of non-conformances. Quality control will not improve
quality but just highlight when products and services do not conform to requirements. An
over emphasis on quality control will result in people relying on their work to be checked
and tends to stop them from taking responsibility for improving the processes for which
they are responsible.

2.1.3. Quality Assurance

Finding and solving a problem after a non-conformance has been created is not an
effective means of eliminating the root cause of a problem. Continuous improvement can
only be achieved by directing organizational efforts towards planning and preventing
problems occurring at source. This concept leads to the third stage of quality management
development which is quality assurance. In short, more emphasis is placed on advanced
quality planning, improving the design of the product, process and services, improving
control over the process, and involving and motivating people.

2.1.4. Total Quality Management

The fourth and highest level of quality management is TQM. TQM is a management
philosophy, a paradigm, a continuous improvement approach to doing business through a
new management model. TQM expands beyond statistical process control to embrace a



wider scope of management activities of how to manage people and organizations by
focusing on the entire process, not just simple measurements. This involves the
application of quality management principles, these are: continuous improvement,
customer focus, honesty, sincerity and care to all aspects of the business, including
customers and suppliers. TQM is composed of three paradigms:

• Total: Involving the entire organization
• Quality: conformance to requirements (meeting customer requirements)
• Management: Science and art or manner of planning, controlling, directing and
the like

2.1.5. State of the Art

The history of quality management, from mere inspection to TQM, and its modern
branded interpretations such as Six-Sigma, has led to the development of essential
processes, ideas, theories and tools that are central to quality improvement. Six-Sigma is
a new strategic paradigm of management innovation for the survival of a company in the
21st century, which implies three things: statistical measurement, management strategy
and quality culture [16]. It is regarded as a fresh quality management strategy which can
replace quality control, TQM and others. In a sense, we can view the development
process of Six-Sigma as shown in Figure 2.2

Fig. 2. 2 Development process of Six Sigma in quality management [17]



A garment production process faces numerous kinds of problems leading to quality
defects and subsequent alterations and rejections of the product. The Six-Sigma
methodology is a structured program for improving garment quality through Define,
Measure, Analyze, Improve and Control (DMAIC) methods [18 ]. DMAIC phases consist
of the following steps:

Define: This is the first phase of the process improvement effort. During this phase, the
Six-Sigma project is defined. Planning for the garment production and collection of
information pertaining to the customer requirements is done.

Measure: In this phase the key internal processes that influence critical to quality (CTQ)
are identified and the garment defects are measured.

Analyze: This phase involves the data analysis for identification of parts of process
which affect the quality of the garment. There are a number of statistical tools available
such as Hypothesis Testing, Regression Analysis and historical Design of PFMEA, Box
Plot, ANOVA, Correlation, Regression.

Improve: This phase finds a permanent solution to the problem. This may involve better
forecasting, better scheduling, better procedures or equipment.

Control: In this phase, tools are used to ensure that the key variables remain within the
maximum permissible ranges continuously.

Currently there are analytic software for Six-Sigma programs that provide all necessary
data management, analysis, and graphics capabilities to determine the most important
factors, and perform data-driven decision-making [16].



2.2. Quality Standards

Quality standards are frameworks for achieving a recognized level of quality within an
organization. Achievement of a quality standard demonstrates that an organization has
met the requirements laid out by a certifying body. There are at least four different
sources of product standards: company standards, industry standards, national standards,
and international standards [10]. International standards are increasingly important for
doing business in a global environment. International Standard Organization (ISO) has
developed a set of standards for quality systems that is required for quality certification.
The ISO 9000 family of standards represents an international consensus on good
management practice. Its primary aim is to give organizations guidelines on what
constitutes an effective quality management system, which in turn can serve as a
framework for continuous improvement. ISO 9000 is not a product quality label or
guarantee. Compliance with the standards verifies product repeatability such that
products produced under a specified standard will have similar dimensions of quality.

Some garment industries view ISO certification is only necessary as a factor for exports.
Implementation of ISO helps the garment industries to enhance their product and process
quality, minimizes defective supplies and reworking. As it is a well recognized standard
for quality, it shows the customers that the industry takes quality seriously. ISO certified
companies focus more on the quality of their products and operations. It also motivates
the employees in improving quality. The cost of implementing ISO is comparatively
cheaper to the benefits derived out of it. Many ISO certified companies positively assert
that their total costs went down to a considerable extent after the implementation of ISO
[18].

There is no industry or government-mandated standards for textile or garment
performance, but voluntary standards are available for many products. These standards
are used by many textile mills and apparel firms to determine performance of materials.
Two government and trade supported organizations have developed standard
performance specifications for textiles and many other products. The American Society
for Testing and Materials (ASTM) and the American Association of Textile Chemists and



Colorists (AATCC) have established standard test methods related to performance
characteristics and physical parameters of textile products [18].

ASTM is the world's largest source of voluntary standards for different types of products,
including textile and apparel categories. ASTM annually publishes books of standards for
many products. ASTM published a series of recommended standards that can serve as
guidelines for purchasing fabrics with performance acceptable for forty-two apparel
product categories. These standards are used as guidelines in specifying fabric
requirements and negotiating purchase contracts.

AATCC is internationally recognized for its standard methods for testing dyed and
chemically treated fibers and fabrics. These standards are established to measure and
evaluate performance characteristics such as colorfastness to light and washing, durable
press finishes, shape retention, flammability, and the many other conditions to which
textiles may be subjected. The standards and test methods provided by ASTM and
AATCC often become a part of the materials standards and specifications used by
manufacturers.

2.3. Quality Improvement

Inspecting every product is costly and inefficient, but the consequences of shipping non-
conforming product can be significant in terms of customer dissatisfaction [11]. As a
result, the underlying aim of quality improvement is to ensure in a cost efficient manner
that the product shipped to customers meets their specifications. Higher product quality is
required for a company to become more competitive, both locally and in international
trade as shown in Figure 2.3. Improved quality increases productivity, hence, many
world-class firms and nations use quality as a powerful competitive tool [19].



Reduced Cost of Improved
Reduced Waste
Production Productivity

Improved
Improved Quality
Competitiveness

Increased Market Increased
Share Revenues

Fig. 2. 3 Quality and Competitiveness [19]

Continuous improvement of quality is needed since there are competition pressures and
customer needs are a moving target. Therefore, quality goals must keep shifting to
respond to the changes that keep coming over the horizon i.e. new technology, new
competition, threats, and opportunities [20]. The Deming’s plan-do-check-act (PDCA)
cycle is the most widely used tools for continuous improvement as shown in Figure 2.4

Plan

Act Do

Check

Fig. 2. 4 Deming’s PDCA cycle [21]

Plan: Identify an opportunity and plan for change.

Do: Implement the change on a small scale.

Check: Use data to analyze the results of the change and determine whether it made a
difference.

Act: If the change was successful, implement it on a wider scale and continuously assess
the results. If the change did not work, begin the cycle again.



A wide range of tools and techniques are used for identifying, measuring, prioritizing and
improving a process which are critical to quality. The basic quality improvement tools are
Check sheets, Histograms, Pareto diagram, Cause-and-Effect diagrams, Scatter diagrams
and Control charts.

A Check sheet is a paper form on which items to be checked have been printed already so
that data can be collected easily and concisely. Its main purposes are to make data-
gathering easy and to arrange data automatically so that they can be used easily later on.

A Histogram is a bar chart showing a distribution of variables. This tool helps identify the
cause of problems in a process by shape of the distribution as well as the width of the
distribution. The histogram clearly portrays information on location, spread, and shape
regarding the functioning of the physical process. It can also help suggest both the nature
of and possible improvements for the physical mechanisms at work in the process.

A Pareto Diagram is a bar graph used to arrange information in such a way that priorities
for process improvement can be established. Pareto diagram is used to display the relative
importance of data and to direct efforts to the biggest improvement opportunity by
highlighting the vital few in contrasts to the useful many.

A Cause-and-Effect Diagram is a tool that helps identify, sort, and display possible
causes of a specific problem or quality characteristic. The diagram graphically illustrates
the relationship between a given outcome and all the factors that influence the outcome.
It is used when we need to identify the possible root causes, the basic reasons, for a
specific effect, problem, or condition, sort out and relate some of the interactions among
the factors affecting a particular process or effect and analyze existing problems so that
corrective action can be taken.

A Scatter diagram is used to study the relation of two corresponding variables i.e. a
quality characteristic and a factor affecting it, two related quality characteristics, or two
factors relating to a single quality characteristic.



A Control chart is a graphical method for displaying control results and evaluating
whether a measurement procedure is in-control or out-of-control.

2.4. Quality Costs

A proper understanding of the cost of quality (COQ) is vital for a garment industry to
develop quality conformance as a useful strategic business tool to improve quality.
Quality costs are the costs associated with preventing, finding, and correcting defective
work [21]. Research shows that the costs of poor quality can range from 15%-40% of
business costs [22]. Many of these costs can be significantly reduced or completely
avoided.

There are four types of quality costs: prevention costs, appraisal costs, internal failure
costs, and external failure costs [23].

i. Internal Failure Costs: Costs from product defects prior to shipment to customer.
These include scrap, rework, retest, downtime, etc.

ii. External failure costs: Costs associated with defects found after shipment to
customer. They include complaint adjustment, returned material, warranty
charges, allowances, etc.

iii. Appraisal Costs: Costs associated with discovering the condition of products
and raw materials. They include incoming material inspection, inspection and test,
maintain accuracy of test equipment, materials and services consumed, evaluating
of stocks etc.

iv. Prevention Costs: The costs of all activities to prevent poor quality of products.
These include quality planning, new products review, training, process control,
quality data acquisition and analysis, quality reporting, improvement projects etc.



Total Cost of Quality

Total Cost of Quality is the sum of four types of costs i.e. Prevention Cost + Appraisal
Cost + Internal Failure Cost + External Failure Cost.

In today's business environment reduction of total cost of quality increases the
competitiveness and facilitates survival and further growth of a garment industry [23].

2.5. Self Assessment

Three most frequently used self-assessment models have been Japan’s Deming
Application Prize, the Malcolm Baldrige National Quality Award (MBNA), and the
European Quality Award (EQA). Each award is based on a perceived model of total
quality management. They do not focus solely on either product or service perfection or
traditional quality management methods, but consider a wide range of management
activities, behavior and processes which influence the quality of the final offerings [20].
The model of the European Quality Award is divided into two parts: enablers and results.
The enablers are leadership, people management, policy and strategy, resources and
processes [15]. These five aspects steer the business and facilitate the transformation of
inputs to outputs. The results are people satisfaction, customer satisfaction, impact on
society and business results which are the measure of the level of output attained by the
organization. The model consists of nine primary elements which are further divided into
a number of secondary elements as shown in Figure 2.5



Fig. 2. 5 The European quality award model [15]

2.6. Garment Production Process

Garment production process is fragmented and labor-intensive. With low capital and skill
requirements, it is ideally suited to the early stages of industrialization [24]. The
Ethiopian garment industry is segmented into tailors, domestic manufacturers and
exporters. Tailors undertake the bulk of production of the domestic market. A typical
tailoring shop consists of a tailor who deals with customers (helping with design and
measurement) and 3-4 workers who stitch the clothes. Consumers generally provide the
fabric; therefore, tailors have low fixed costs and pay lower wages. Generally, most tailor
made clothing are cheaper than ready-made apparel. Domestic manufacturers and
exporters produce western style ready-made apparel for either domestic or export.

This research focuses only western style apparel ready-made apparel. The traditional
style garments such as Abesha Lebse (Ethiopian traditional cloth) are excluded since they
are unique to Ethiopia and, therefore, not comparable across countries.



Apparel production process

The production of a final garment consists of the consecutive steps shown in Figure 2.6.
[25]

Pattern Making: Patternmaking is the process of creating all the correctly sized pieces
needed to make a complete garment. The traditional method of pattern making includes
creation of hard paper patterns. The modern garment making system has adopted the
digitization of pattern making process. Most of Ethiopian garment industries are still
using the traditional method because the cost of computerized systems is prohibitive.

Pattern Grading: Pattern pieces must be increased or decreased geometrically to create
a complete range of sizes. The process of resizing the initial pattern is called grading. The
grade rules are developed keeping in view the market segment for which the product is
intended such as men, women, youth, children, etc.

Marker Making: Fabric is the most important basic material for apparel making and it
accounts for around 50 per cent of the cost of a garment. Thus, material optimization or
maximizing fabric utilization is the fundamental factor for every garment firm. Marking
refers to the process of placing pattern pieces to maximize the number of patterns that can
be cut out of a given piece of fabric. Marker making considers fabric width, length, fabric
type and subsequent cutting method used. Although markers can be made manually or
using CAD software, the computerized method is more efficient.

Garment Cutting: Once the marker is made, pattern pieces must be cut out of the
specified fabric. Apart from using traditional tools, nowadays, computerized cutting
systems are widely used for garment cutting. Pattern specifications are kept into
consideration while cutting which ensure that the constructed garment is exactly similar
to the sample produced.

Garment Sewing: This is the main assembly stage of the production process where
fabric is stitched together and a garment is assembled. Computerized sewing machines
can be programmed to sew a specific number of stitches. However, sewing remains
largely labor-intensive.


Quality improvement in Ethiopian g ustries
garment indu

sing and Finishing: A
Press F After the se
ewing opera
ation, the constructed g
garments ar
re
exam
mined, presse tagged an bagged. Special deta
ed, nd ailing such a pleats, em
as mbroidery an
nd
scree printing to a garment a also adde
en o are ed.

Garment d
design

Creating pa
attern

Production p
P planning

Order fa
abric/accessories Schedu production pro
ule ocess

Pre-assem
mbly
Marker making
M Buddle (ensure a pattern
Spread (lay cloth on the
(de
etermine layout of cut pieces fr
from same ply of
ble)
tab
pa
atterns on fabric) fabric)

Assemb
bly

Ensure the pieces f together at the e of the sewing
E fit end
Sew
process

Finishi
ing

Trim Inspect Wash P
Press Pack

Fig. 2 6 Garmen production process [25
2. nt n 5]

23


Garment production techniques are divided into make through, assembly line and
modular methods [26]. The method used depends on the product type, quality level, order
quantity, level of technology and skills available as shown Table 2.1

In make through method a single operator undertakes the whole process. Therefore, little
supervision and organization are required. In addition, this method has a very low
throughput time because only one unit has to be finished at a time to complete the order.
The disadvantage of this system is that operator needs to conduct all the operations
required to produce the finished good and cannot learn any specialization.

Assembly line method is based on extreme division of labor. Its major advantage is that
both workers and machines are specialized, allowing for a dramatic increase in
productivity. In addition, the individual skills required by operators are greatly reduced.
However, this method of production needs excellent organizational ability so as to avoid
idle time. Factors like variations in individual operator performance, absenteeism and
machine breakdowns can easily upset the working schedule. In addition, this makes it
harder to handle style variations and dramatically increases the lead time associated with
a finished batch of products.

Modular: Modular formation consists of grouping tasks and assigning them to module.
These workers are cross-trained and can, therefore, easily move across tasks.
Compensation is based on the module’s output instead of that of the individual worker.
The key benefit of this method is the reduction in throughput time. However, the costs of
the switching to this method are very high as extensive training is required. It is
commonly used for high value-added, high fashion product.



Table 2. 1 Apparel manufacturing Methods [26]

System Description Characteristics Quality Ease of Operator Investment
Control style skill required
change required
Make Whole garment • Short runs Low High High Low
through is made by one • Little
operator supervision
Assembly Extreme division • Long runs High Low Medium High
line of labor • High
supervision
• Standard
products
Modular Employees are • Short runs High High High Medium
organized in • High
groups to carry supervision
out complete • High value
operations for a products
family products



3. METODLOGY, DATA COLLECTION AND ANALYSIS

3.1. Methodology

To undertake this research, a sample size of 11 garment industries (Wossi Garment, Unis
Garment, Oasis Abyssinia Garment, Mulat Garment, Haile Garment, GMM, Feleke
Garment, Ambassador Garment, Garment Evolution, Novastar Garment and Knit to Finish)
was selected out of a total 28 garment industries in the country. Detail list of these garment
industries are attached in Appendix 1. The sample size was decided after considering the
expected response rate, requirements for performing statistical analysis, available time and
survey cost. Moreover, the selected garment industries cover most types of products-
knitted and woven, T-shirts, polos, trousers, suits, jackets of different sizes. Although
the selected samples were limited to firms in Addis Ababa and Oromia Region where the
majority of the national garment industries (95%) are located, it is assumed that the
samples from these regions can give directions on the whole situation of garment industries
in Ethiopia. In order to obtain important information about the performance of Ethiopian
garment industries, the following organizations were contacted.

• Quality and standards Authority of Ethiopia
• Ministry of Trade and Industry
• UNIDO
• Ethiopian Garment Association
• Ethiopian Textile and Leather Industry Development Center
• Central Statistics Agency

In order to assess the quality related problems of the sector, primary and secondary data
were collected using a well structured questionnaire, interviews, personal observations
and review of previous research works.



3.1.1. Survey Questionnaire

The questionnaire was pilot-tested with a small sample of garment industries in order to
refine before distribution. Personal visits as well as phone calls were used to increase
response rate.

The type of questionnaire used to collect data is presented in Appendix 2. The survey
questionnaire contains 60 questions requiring four types of answers:

• The first type uses a nominal scale, Yes or No
• The second type uses an ordinal scale, Excellent, Very Good, Good, Fair, Poor
• The third type of scale is Very high, High, Moderate, Low and Nil
• The fourth type requires brief answer for subjective questions

The questionnaire in this survey is categorized into five different sections with reference
to the Ethiopian garment industries. The first category of questions (1to7) was designed
to explore the general quality awareness of the industries. These set of questions were
based on the philosophy of one of the quality gurus, Crosby.

The second category of questions (8 to 10) is related to the causes of poor quality in the
factories. The objective of these questions is to evaluate the impact of factors such as
skills, technology, management commitment and supplier relation.

The third category of questions (11 to 25) were designed to assess the quality
improvement efforts made by the management such as trainings, teamwork and customer
satisfaction.

The last category questions (26 to 60) deals with quality performance to understand the
current quality standards in Ethiopian garment industries. These questions deal with
quality planning, quality design, quality control, quality improvement, quality assurance,
quality documentation and cost of quality.



3.1.2. Structured Interviews

The design of the interviews was based on the research objectives. Interviews were
conducted with top management of the garment industries. The interviews were used to
cross check the reliability of the response to the questionnaire. It is also used to gather
additional information to compare the current QMS with respect to ISO standard.

3.1.3. Direct Observation

In this research direct observation is used as a means to assess the techniques used in
documentation and production processes as well as the existing facilities of the industries.
Important documents of the respective industries such as annual reports, company profile
brochure, and inspection data have been also used to perform quantitative analysis.

3.2. Data Collection and Analysis

A total of 110 questionnaires were distributed out of which 53% were completed by the
respondents. The most common reasons for non-response were low educational level and
unwillingness. The result of the statistical analysis of the questionnaire is presented in
Appendix 3. According to the first category of questions, the general understanding of
quality concept in the industries is higher at the top of the organization and gets lesser as
it goes down.

The second category of the questions reveals the causes of poor quality products in the
industries. As shown in Figure 3.1, the system of the organization such as policies, rules
and procedures are the primary obstacle to improve quality in the industries. Lack of
required knowledge and skill of employees is the second major contributor.



50%

40%

30%

20%

10%

0%
A B C D E
Series 1 40% 8.80% 19% 11.10% 21%

Fig. 3. 1 Obstacles to improve quality in the companies

A- The system of the organization (like policy, rules and procedures)
B- The internal working environment
C- Lack of consistency in the action being taken
D- Fear and resistance of the management
E- Lack of the required knowledge and skill

Figure 3.2 shows that poor quality of raw materials is the major cause of poor quality
products in the industries and inadequate training of workers in the industries also has a
great impact.



30%

25%

20%

15%

10%

5%

0%
A B C D E
Series 1 27.27% 23.63% 18.17% 20% 11%

Fig. 3. 2 Cause of poor quality products in the companies

A- Poor quality of raw materials delivered from suppliers
B- Inadequate training of workers in the company
C- Lack of top management commitment to quality
D- Low quality awareness of workers in the company
E- Unavailability of proper technology

Referring to the subjective answers, the quality related problems faced by the industries
are manifold and include:

1. Lack of quality awareness
2. Lack of proper training
3. Lack of skilled manpower
4. Lack of motivation of workers
5. Low technological level
6. Customer dissatisfaction because of late delivery
7. High rate of rework/rejects
8. Low quality fabric
9. Unavailability of Quality Management System
10. Lack of proper inspection techniques



11. Poor understanding of customers’ requirements

From the above responses, a Parteo diagram is constructed as shown in Figure 3.3 to
reveal the major causes of the problems.

Fig. 3. 3 Pareto diagram for quality related problems in the industries

A- Low quality fabric
B- Lack of quality awareness
C- Lack of skilled manpower
D- Low technological level
E- Managerial problems
F- Lack of proper inspection techniques
Others

The analysis of the Pareto diagram shows that poor quality of the raw material (fabric) is
the major cause of poor quality products in Ethiopian garment industries.



According to the respondents for the third category of the questions, the frequency of
trainings given to employees is very low as a result the overall skill of the employees is
low. Usually the industries give training only on hiring. The existence of strong
cooperation and teamwork is not satisfactory. 65% of the respondents agree that the
response of the industry to market change is low. The quality of products of the
respondent companies is not compatible with the quality of the products manufactured by
the market leaders. About 67.5% of the respondents say that the rate of rework in the
industries is high. 73% of the respondents agree that the biggest concerns of the
management are cost and schedules instead of quality.

According to the last category of respondents, most of the garment industries do not
identify customer requirements. There is a large gap between customer requirement and
the products of the industries. The degree of communication with the customers to
understand their requirement and translating into products is not satisfactory. About 52%
of the respondents agreed that the existence of favorable system for customers to express
their feelings is very low.

These industries don’t have quality improvement programs and they spend most of their
time on detecting the defects of the products rather than preventing the defects. As a
result, the quality control activities are inspection-based instead of prevention-based.
They use visual inspection techniques which are not an effective method and there is no
awareness and application of the statistical process control tools.

Because of poor management commitment to quality, most of the garment industries
don’t have their own business culture to support total employees involvement in quality
improvement. Therefore, the quality vision, mission objective statement and relative
measures do not exist.

68% of the respondents agree that the garment industries do not have self evaluation
techniques. As a result, the industries don’t have internal/external quality audit system
and also do not calculate their cost of quality. Therefore, they are unable to identify the
existing problems and take necessary measures.



According to 72% of the respondents, the garment industries do not have any mechanism
to evaluate the performance their fabric and accessory suppliers. The industries focus on
price instead of quality in the selection of suppliers.

According to the information from Ethiopian Garment Association, all garment factories
in Ethiopia are not ISO certified. But, four garment industries i.e. NovaStar Garment,
Maa Garment, Addis Garment and Nazrethe Garment are in the process of WRAP
certification. The Worldwide Responsible Garment Production Principles (WRAP) is
core standards for production facilities participating in the Worldwide Responsible
Garment Production Certification Program. The Program’s objective is to independently
monitor and certify compliance with these socially responsible global standards for
manufacturing, and ensuring that manufactured products are produced under lawful,
humane and ethical conditions. These industries want to use WRAP for marketing
purposes under AGOA export benefit.

3.2.1 Gap Analysis

One of the first steps in quality improvement is to compare the current Quality
Management System (QMS) to the requirements of the ISO 9000:2000 standard. This is
most commonly called a Gap Analysis. A Gap Analysis is used to assess an
organization’s scope, readiness, and its resources for building an ISO system [27].

Therefore, in this research a quality management preliminary gap analysis for Ethiopian
garment industries is done based on the data collected from the questionnaire, interview
and personal observation. The possible responses of the questions and their qualitative
interpretations are shown in Table 3.1. The preliminary gap analysis for ISO 9001:2000
in Ethiopian garment industries is shown in Table 3.2. Benchmarking for the analysis
result is shown in Table 3.3.



Table 3. 1 Qualitative interpretation of questions

0 The company does not know what is required or believe it is necessary
1 The company does not perform this activity
2 The company understands this activity is a good thing to do but do not do it
3 The company does this sometimes
4 The company does this but not very well
5 The company does this quite well.

Table 3. 2 Preliminary Gap Analysis for ISO 9001: 2000

Quality Management System Preliminary Gap Analysis Score
Decide on a number from 0 to 5 for each item below 1 to 5
1 Establishing, documenting, implementing and maintaining a QMS to any system including 1
ISO 9001, ISO 9002 or ISO 9003
2 Identification of the processes needed for QMS i.e. 1
a. The sequence of the production and service delivery processes
b. The criteria and methods needed to ensure the processes are effective, and
c. Have the resources and the information needed to support the processes
3 Availability of: 1
a. Quality Manual including Quality Policy and quality objectives
b. Written procedures and work instructions
4 Do the records provide evidence that the business processes are effective? 1
5 Commitment of Top Management to the development and implementation of a QMS 1
6 Communicating the importance of meeting customer and other business requirements to all 3
the employees by top management
7 Commitment of top management to ensure that customers’ requirements are top priority 2
8 Do quality objectives include requirements for production and delivery? 1
9 Are quality objectives measurable? 1
10 Have the responsibilities and authorities of managers and employees been defined and 3
communicated to them?
11 Does the management have the drive and resources needed 1
a. To implement, and maintain a QMS and continually improve its effectiveness,



and
b. To enhance customer satisfaction by meeting customer requirements
12 Procedures to select competent personnel for work activities 3
13 Provide training or take other action to help develop people 2
14 Adequate provision of: 2
a. Buildings, workspace and utilities
b. Process equipment
c. Supporting services such as transport or communication
15 Review customer order for: 3
a. Requirements specified by the customer, including the delivery and post-delivery
activities
b. Requirements not stated by the customer but necessary for specified use or known
and intended use
c. Statutory and regulatory requirements related to the product
16 Inform customers concerning 3
a. Product information
b. Enquiries, contracts or order handling, including changes
c. Channels for customer feedback and complaints
17 Planning and controlling product design and development activities 1
18 Maintain records of design or development review, verification and validation activities 1
and resulting action?
19 Inspection or confirmation of purchased products, materials, components and services 3
conform to the specified purchase requirements
20 Selection of suppliers depending on how important the purchased product is for production 2
21 Evaluation of suppliers (subcontractors or vendors) based on their ability to satisfy the 2
companies requirements
22 Ensuring that production has 3
a. The information that describes the characteristics of the product
b. The necessary work instructions,
c. Suitable equipment, and
d. The monitoring and measuring devices needed
23 Confirming regularly that production and service processes are capable of consistently 2
meeting the companies requirements
24 Proper handling of products during both production and delivery to the customer, by 3
providing suitable identification, packaging, storage, preservation and handling
25 Availability of instructions needed to identify inspection or monitoring activities to be 3
done during production or service delivery and the devices to be used



26 Measuring equipment are: 1
a. Calibrated or verified at specified intervals, or prior to use
b. Adjusted or re-adjusted as necessary
c. Identified to enable the calibration status to be determined
d. Safeguarded from adjustments that would invalidate the measurement result
e. Protected from damage and deterioration during handling, maintenance and
storage
27 Monitoring customers’ information to assure customer satisfaction 2
28 Conducting internal quality audits at planned intervals 2
29 Use of suitable methods to monitor and, where practical, measure the performance of 2
processes
30 Inspection of finished products and record the results 2
31 Identifying nonconforming products and reviewing them for disposition 3
32 Collect and analyzing data to assess the suitability and effectiveness of the QMS 1
33 Using data to evaluate or identify where continual improvement of the QMS can be made 1
34 Continually improving the effectiveness of the QMS 1
35 Taking corrective action to eliminate the causes of problems and to prevent their 1
recurrence
36 Determining and eliminating potential nonconformities in order to prevent their occurrence 1

Table 3. 3 Analysis table

The company is almost ready to complete ISO 9001 QMS and apply for
130-180 75% - 100%
certification/ registration.

The company is ready to implement the QMS. This will likely improve
80 -129 50% - 74%
its business results.

The company has a lot to do but should begin. You could consider
0 -79 0% - 49%
seeking help from a consultant or specialist.

The analysis of table 3.2 shows that the total scoring of Ethiopian garment industries is
66 which is below 50%. Therefore, we can conclude that Ethiopian garment industries
have a wide gap compared to an ISO 9001: 2000 system.



3.2.2 Benchmarking

For further analysis this research work has referred to the benchmarking done by UNIDO
taking selected reference countries and competitor countries as shown in Table 3.4 [12]

Reference countries

Romania: An important EU supplier of high quality garments mainly on Cut Make Trim
(CMT) basis using imported fabrics.

Turkey: 2nd major supplier of garments in EU after China. Turkey is well known for its
capabilities to deliver Free On Board (FOB) garments made from local fabrics.

Competitor countries

Bangladesh: An important FOB supplier for EU and US where 75% the country’s export
is textile and garment.

Egypt: An African country which has a policy to attract textile & garment companies.

Table 3. 4 Benchmarking of Ethiopian garment industries [12]

Reference countries Competitor countries
Ethiopia
Turkey Romania Egypt Bangladesh
1 Availability of technology 1 5 5 3 3
2 Average employees skills 2 5 5 3 3
3 Marketing abilities 1 5 4 3 3
3 Product development 1 5 4 2 3
4 Business environment 1 5 5 3 4
5 Certifications & testing labs 1 5 4 2 4
6 Technical flexibility 3 5 5 4 3
7 Productivity 1 4 5 2 3
8 Quality level 2 5 5 3 3
9 Management abilities 2 5 5 2 2
10 Value added 1 5 4 3 3
11 Availability of raw materials 2 5 3 4 4
12 Price competitiveness 1 5 2 5 5



Based on Table 3.4, this research work compares Ethiopian garment industries with
international best practice country (Turkey) and makes a performance gap analysis as
shown in Figure 3.4

6

5

4
Gap = ‐3.4 Ethiopia
3
Turkey Mean
2 Ethiopia Mean

1

0
1 2 3 4 5 6 7 8 9 10 11 12

Fig. 3. 4 Performance gap of Ethiopian garment industries with best practice country

From the benchmarking analysis, we can see that the gap between Ethiopia and best
performance country (Turkey) is very high.

3.2.3 COQ in NovaStar Garment PLC

This research work tries to look the total COQ in one of Ethiopian garment industries,
NovaStar garment PLC. Although the industry does not calculate its cost of quality, this
research work estimates its COQ for the fiscal year 2007/2008 based on the data collected
from document review.

Based on the components of COQ discussed in section 2.4, the total COQ is calculated as
follows:



Internal failure cost

Scrap: For the fiscal year 2007/2008 the industry consumed 285,000 m of fabric which
costs 285,000 m X 15 Birr = 4,275,000 Birr.

The amount of scrap was on average 175 m X 12 months=2,100 m

Therefore, the cost of scrap is = 2,100 m x 15 Birr = 31,000 Birr

Rework cost: The rework cost is the cost of re-processing the defective garments after
inspection. The industry produces on average 50,000 pcs of clothes per month and the
monthly production cost is 742,400 Birr.

Taking an average of 20% defective garments per month and the cost of reworking
defective garments per year is 1,776,000 Birr

External failure cost

Returns: According to the fiscal year 2007/08 the industry has lost a total of 332,000 birr
due to returned material.

Appraisal cost

Inspection cost: The industry has 8 inspectors with an a rage salary of 750 Birr

Therefore, the total inspection cost for the fiscal year 2007/08 is 750 Birr x 8 persons x
12 months = 72,000 Birr

Quality audit cost: The industry has 2 internal auditors with an average salary of 1,200
Birr

Therefore, the total quality audit cost for the fiscal year 2007/08 is 1,200 Birr x 2 persons
x 12 months = 28,800 Birr

Prevention cost

Quality related training: The industry does not have training cost and relies on training
given by MoTI



Total cost of quality

Total cost of quality = Internal failure cost + External failure cost + Appraisal cost+
Prevention cost

Therefore, the total cost of quality for the fiscal year 2007/08 is 2,239,800 Birr

Table 3. 5 Estimated COQ in NovaStar garment PLC

Quality cost element Total cost (Birr) Percentage

1 Prevention cost - -

2 Appraisal cost 100,800 4.5%

3 Internal failure cost 1,807,000 80.68%

4 External failure cost 332,000 14.82%

Total cost of quality 2,239,800 100%

From the analysis of total cost of quality in Table 3.5, the percentage of quality cost
elements is analyzed in Figure 3.5

90.00% 80.68%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00% 14.82%
10.00% 4.50%
0.00%
Appraisal cost Internal failure cost External failure cost

Qulaity cost elements

Fig. 3. 5 Percentage of quality cost elements in NovaStar garment PLC


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