ttcmso

Streamlining of SME's in Textile / Garment
Training Staff for Upgrading of Skills and Competencies to
Avoid
Laying Off Staff in times of Downturn and thereafter

The STAL-Project, sponsored by OSMEP (Office for SME Promotion) and executed by TTCMSO (Thai Textile Clothing Membership Organization) integrates important features out of the OSMEP Strategy Portfolio as given in the 2.nd. SME's Promotion Plan 2007 to 2011. The STAL-Project works through altogether 7 Project Steps which are:

1 Setting up + communicating the Project Business Model
2 Process Audit of 5 Sample Companies to test and adapt the Project Business Model
3 Develop a Benchmark Audit Tool to allow the implementation of the Business Model in 30 Companies
4 Develop an E-Learning supported Training Program for Staff-Education to avoid Lay Offs
5 Train Trainers for Implementation of the Benchmark Audit and the Training Program
6 Audit and Train 30 Companies
7 Report the results and motivate a wide range of Textile / Garment Companies to share the Project for their and their Staff's direct benefit.

Reason for the STAL-Project

Thailand's Textile / Garment is more and more loosing out and tracking behind other Textile / Garment Countries' Growth-Rate. Vietnam is on the verge of overtaking Indian Apparel Exports. The same happened to Bangladesh. Other countries such as Cambodia, Indonesia, Sri Lanka and Pakistan are gaining strength. The reasons are: These countries are able to supply products for less due to lower costs. China remains the frontrunner with US$ 115 billion worth of Garment Exports annually. India compares with US$ 9,7 billion, Bangladesh with US$ 11 billion, Vietnam US$ 10 billion. Bangladesh has larger factories as compared to India, they are more productive and have much lower labor-costs. In fact Indian labor ratios are 129% higher than in Bangladesh. Customers have recently started to avoid China due to labor problems and already too high production costs. As a result Business has shifted to alternative sources mainly to Bangladesh
 
Seen from the Economy of Scale and the Cost point of view, Thailand is no longer able to compete satisfactory on the mass world market. Resulting is a strong requirement for Strategy of Change, by-passing mass and standard Textile / Garment products. There is need to focus on high end added value products which can build up on existing Skill Platforms. Such change of strategy however needs Change of Mind-Set, Change of Strategy, Change of Processes, Upgrading SCM, efforts to work together with Strategic Alliance Partners and last not least a dramatic increase of competencies in Management, Manufacturing, Engineering, Computer and Operation Skills.

To survive and grow again the Textile / Garment Industry in Thailand needs to re-invent the way it is operating. The STAL-Project therefore is not alone about initiating and supporting the Redesign of Textile / Garment but also about Training + Education for enhanced Effectiveness and Higher Skill Levels and about Implementation of the Redesign instead of forcing Companies to lay off Staff during and after an Economic Downturn.
(All data here is taken out of BKK-Post of 12.02.2009 supplied by APEC)

How the STAL-Project is brought forward

The STAL-Project is to be build up based on 5 process audited companies and on TTCMSO's data infrastructure applying the TTTT (Textile Training Through Technology®) E-Learning Program Textile / Garment with its 6 Textile/Garment Program Packages. The arenas of focus will be to develop a work structure (Business Model) and implement a Process Audit to streamline Processes followed by developing a Benchmark Tool which allows a full scale Benchmark but also the calculation of Staff which may be underused during Downturn time. This underused Staff needs Training which is to be prepared and implemented. Later the trained and underused Staff will be taken back into the Process however with upgraded competencies and better prepared for additional Added Value.

During the second Project Step Process TTCMSO will involve RMUTT and BISD/DIP as Observers and later Trainers (Ajarns) to become acquainted with TTCMSO STAL-Project procedures. Those will cover 5 Process Audits in 5 Textile / Garment Companies implementing 12 criteria when auditing all departments and functional areas in such 5 Sample Companies. The objective is to define strengths and weaknesses related to Streamlining Requirements, number of Staff required during the weak business situation and their Training Needs (competency gaps) to be dealt with.

This task will be followed by introducing the Benchmark Tool to be applied and adapted to locate each company among its peers. The tool has originally been developed for Germany's Chemistry Industry and is to be redesigned + adapted for the requirements of Textile and Garment as described here. Main features in this Project Step are the development of the
Benchmark Tool itself so that the results of the 5 Process Audited Companies can be compared. In fact the Benchmark Tool will also be used to define Productivity, Staff number, Training Requirements of those Companies to be included in the Project later.

In the now following Project Step TTCMSO will work closely together with it's Strategic Alliance Partner, the THRC (Textile Human Resource Council in Ottawa, Canada), the E-Learning Program Developer, of which TTCMSO (through it's Strategic Alliance Partner IPB) is the indirect License Holder. The TTTT® E-Learning Program will be applied to generate Individual Company Learning Programs in the following Learning Segments:

• Management Skills
• Manufacturing Skills
• Engineering Skills
• Operations Skills
• Computer Skills
• Foundation Skills

The Program comprises 4.000 modules, is based on on-line technology, inter-activeness, multimedia, text printable on demand, process demonstrating and not least process supporting. For each participating Company in the STAL-Project TTCMSO will deliver an individual Training Program.

As soon as the Audit, the Benchmark, the E-learning Program have been finally developed and/or adapted, 30 participating STAL-Project Companies (SME-Sector only) will be worked through to benefit in the objectives of the STAL-Project named before. This phase of the STAL-Project which we name Train the Trainer will introduce the Arjans of RMUTT and BISD/DIP during TTCMSO's Training Sessions preparing the Arjans to cover the total spectrum of the STAL-Project which in detail are:

• Process Auditing of Companies using the Benchmark Tool
• Calculating the number of Staff when streamlining the Company
• Defining the number of unused Staff
• Train the unused Staff in the areas of competency gaps

Taking things further each of the 30 Companies to be dealt with will be taken care for by one Arjan Expert Team consisting out of either one or several Arjans. The Arjans which are involved at this Project Step make up for 10 Teams. 5 Teams from BISD/DIP and 5 Teams from RMUTT. Main tasks being Process Audit, Staff Calculation, Training to avoid lay offs but upgrade the added value knowledge base.

After the STAL-Project Program as shortly described here has been terminated, TTCMSO will invite The Textile / Garment Industry for a Textile / Garment Forum to offer the Industry getting acquainted with the results of the Project. Here the objective is to motivate as many Companies as possible to take over the results offered for redesigning and streamlining their companies to achieve higher Productivity, Knowledge and Added Value to gain or regain International Competitiveness. The STAL-Project therefore has not only a fact-value but at least as important, a mindset-change value to accelerate the growth-options given to the Textile / Garment Industry Sector.