INDUSTRY PROFILE #6
BLUE JEANS
Prepared By
Edward Hochberg
Reviewed By
George J. Coury
Robert W. Rugenstein
VITA
Published By
VOLUNTEERS IN TECHNICAL
ASSISTANCE
1600 Wilson Boulevard, Suite 500,
Arlington, Virginia 22209 USA
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(703) 243-1865
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Blue Jeans
ISBN: 0-86619-293-X
[C]1987, Volunteers in Technical
Assistance
INDUSTRY PROFILES
Introduction
This Industry
Profile is one of a series briefly describing small or medium-sized industries,
The
Profiles
provide basic information for starting manufacturing plants in developing
nations.
Specifically,
they provide general plant descriptions, financial, and technical factors for
their
operation,
and sources of information and expertise. The series is intended to be useful
in
determining
whether the industries described warrant further inquiry either to rule out or
to
decide upon
investment. The underlying assumption of these Profiles is that the individual
making use of
them already has some knowledge and experience in industrial development.
Dollar values
are listed only for machinery and equipment costs, and are primarily based on
equipment in
the United States. The price does not include shipping costs or import-export
taxes,
which must be
considered and will vary greatly from country to country. No other investment
costs are
included (such as land value, building rental, labor, etc.) as those prices
also vary.
These items
are mentioned to provide the investor with a general checklist of considerations
for
setting up a
business.
IMPORTANT
These
profiles should not be substituted for feasibility studies. Before an
investment is made in
a plant, a
feasibility study should be conducted. This may require skilled economic and
engineering
expertise. The following illustrates the range of questions to which answers
must
be obtained:
*
What is the extent of the present demand for the product, and how is it
now being
satisfied?
*
Will the estimated price and quality of the product make it competitive.
*
What is the marketing and distribution plan and to whom will the product
be
sold?
*
How will the plant be financed?
*
Has a realistic time schedule for construction, equipment, delivery,
obtaining
materials and supplies, training of
personnel, and the start-up time for the plant
been developed?
*
How are needed materials and supplies to be procured and machinery and
equipment to be maintained and repaired?
* Are trained personnel
available?
*
Do adequate transportation, storage, power, communication, fuel, water,
and
other facilities exist?
*
What management controls for design, production, quality control, and
other
factors have been included?
*
Will the industry complement or interfere with development plans for the
area?
*
What social, cultural, environmental, and technological considerations
must be
addressed regarding manufacture and use
of this product?
Fully
documented information responding to these and many other questions should be
determined
before proceeding with implementation of an industrial project.
Equipment Suppliers, Engineering
Companies
The services
of professional engineers are desirable in the design of industrial plants even
though
the proposed
plant may be small. A correct design is one that provides the greatest economy
in
the
investment of funds and establishes the basis of operation that will be most
profitable in the
beginning and
will also be capable of expansion without expensive alteration.
Professional
engineers who specialize in industrial design can be found be referring to the
published
cards in various engineering magazines. They may also be reached through their
national
organizations.
Manufacturers
of industrial equipment employ engineers familiar with the design and
installation
of their
specialized products. These manufacturers are usually willing to give
prospective
customers the
benefit of technical advice by those engineers in determining the suitability
of their
equipment in
any proposed project.
VITA
Volunteers in
Technical Assistance (VITA) is a private, non-profit, volunteer organization
engaged in
international development. Through its varied activities and services, VITA
fosters
self-sufficiency
by promoting increased economic productivity. Supported by a volunteer roster
of over 5,000
experts in a wide variety of fields, VITA is able to provide high quality technical
information
to requesters. This information is increasingly conveyed through low-cost
advanced
communication
technologies, including terrestrial packet radio and low-earth-orbiting
satellite.
VITA also
implements both long- and short-term projects to promote enterprise development
and
transfer
technology.
BLUE JEANS
Prepared
by: Edward Hochberg
Reviewed
by: Richard W. Rugenstein
George J. Coury
PRODUCT
DESCRIPTION
1.
The Product
Blue jeans
are work pants made from cotton denim. These blue
jeans have
four pockets, with brass rivets used at pocket
openings
where the stress is greatest. Waist sizes range from 28
to 44 inches,
while lengths are 30 to 36 inches.
There are
also fashion junior and children's jeans that can be
made with the
same equipment and similar materials.
2.
The Facility.
This Profile
describes one plant operating with one shift and
making 15,000
dozens of blue jeans a year, and another that
produces
22,000 dozens a year.
It is
especially important for a small factory to be able to
produce
varied styles. Therefore, it is
imperative to have a
designer/pattern-maker
available to quickly produce properly
fitted items
as requested by the customer.
GENERAL
EVALUATION
Capital
requirements for this plant are moderate and little
technical
skill is needed. The product is in wide
demand but
price
competition is often keen. Production appears suitable for
many
developing areas.
1. Outlook
A. Economic
Depends on the conditions in country.
B. Technical
Good used reconditioned sewing machines can
perform just as
well as some
of the items listed on page 4. They can cost half
the price of
new machines.
2.
Manufacturing Equipment Flexibility
The machinery
and equipment used to produce blue jeans are
similar to
the kind used in the apparel industry to manufacture
other types
of clothing. Therefore, this plant could manufacture
other
wearable items or other fabric products.
3. Knowledge
Base
A good
business plan is necessary. A two to three-year projection
should be
prepared and caution taken against overextension.
Management
should have:
a) Business experience
b) Knowledge of field
c) Sources of capital
d) Knowledge of market
e) Knowledge of procurement of material
& equipment
f) Capability to find government support
4. Quality
Control
Quality
control is very important, and specifications vary from
company to
company and garment to garment. For example, an
entire order
can be rejected for as little an error as the number
of stitches
per inch or the tension of the thread.
5.
Constraints and Limitations
In developing
countries there is usually an ample labor pool that
is easily
adapted to this industry. However,
there may be a
shortage of
designers, pattern-makers, cutters, and mechanics.
Other
considerations include:
--There are no special transportation
requirements, but good
highways would be helpful.
--Manager and supervisors should be fully
experienced.
--Some operators will be operating more
than one machine.
--After break-in period, production workers
should go on piece
work rates.
--Experienced cutters and
designer/pattern-maker are required.
MARKET ASPECTS
1. Users
Individuals, institutions,and
organizations.
2. Suppliers
In most urban
centers there are sales representatives of equipment
manufacturers
and jobbers of fabrics. It may be too
expensive to
go to the United States or other western nations to
look for
design, fabrics and machines. Hong Kong
and Tokyo are
also good
sources for these items.
3. Sales
Channels and Methods
Sales may be
made direct to large stores and to wholesale houses
for
distribution to small retail outlets. The market needed will
depend to a
great extent upon the purchasing power of the local
population.
One path to
explore is contracting with U.S. garment manufacturers
that could
supply a steady source of work for the plant.
However,
large investments in plant and equipment for exports
should not be
undertaken unless there is a written commitment
from the
manufacturer or contractor who can guarantee an outlet
for the
garments.
4. Geographic
Extent of Market
Domestic -
Product is easy to ship and transport costs are
normally low
in relation to product value. Market may be nationwide.
5.
Competition
A. Domestic Market
Very small makers and imports may provide
competition.
B. Export Market
The plant is relatively small and might
have great difficulty
in competing
with large-scale plants or with exports from areas
where labor
is plentiful and cheap.
6. Market
Capacity
Under average
conditions a population of about a million would
probably be
large enough to support production of a small plant.
PRODUCTION
AND PLANT REQUIREMENTS
Requirements
Annual Output:
15,000
dozen 22,000 dozen
1.
Infrastructure, Utilities
Small Plant
Medium Plant
Land
1/2 acre
1/3 acre
Building (one story)
6,000 s.f.
10,000 s.f.
Power
connected load 100 hp
120 hp
Fuel (for steam, heat)
Water (processing, sanitation, fire)
Other
__________
____________
2.
Major Equipment & Machinery
Small Plant
Medium Plant
Units Units
Tools & Machines
cloth spreader
(1)
(1)
cloth unwinder
(1)
(1)
cutting tables
(2)
(2)
cutting machine (heavy duty)
(3)
(4)
cloth drill
(1)
(1)
buttonhole machine
(1)
(1)
button stamp machine
(1)
(1)
riveting machine
(1)
(2)
feed-off-arm machine
(2)
(2)
double needle machine
(11)
(13)
bartack machine
(1)
(2)
safety stitch machine
(7)
(9)
single needle machine
(6)
(8)
overlock
(1)
(2)
pocket press
(1) (2)
double needle flatbed
for loops
(1)
(1)
Support Equipment & Parts
furniture & fixtures
hand trucks
(3)
(1)
20 hp boiler
(1)
(1)
pressing machine
(1)
(2)
chairs & workbenches
work tables
storage shelves
spare parts & tools
work baskets
truck/van
(1)
(1)
(*)TOTAL
ESTIMATED COST
of equipment
& machinery only
$114,000 $139,000
(*)Based on
$US 1987 prices. The costs provided are estimates and
are given
only to provide a general idea f or machinery costs;
they are not
intended to be used as absolute prices. Costs still
need to be
determined on a case by case basis.
(*)3.
Materials & Supplies
Small Plant
Medium Plant
Raw Materials
denim
360,000 yards
540,000 yards
lining
32,000 yards
45,000 yards
zippers
15,000 dozen
23,000 dozen
size tags
15,000 dozen
23,000 dozen
labels
15,000 dozen
23,000 dozen
thread (12,000 yd. cones)
4,200 cones
6,000 cones
buttons
1,410 gross
2,200 gross
rivets
7,500 gross
11,000 gross
Supplies
lubricants
office supplies
factory supplies
Packaging
4.
Labor
Small Plant
Medium Plant
Skilled
designer/pattern-maker
1
1
cutters
2
3
operators
26
36
pressers
1
2
floor help
6
8
Semi-skilled
Unskilled
4
5
Administration
manager
1
1
office
1
1
supervisor
1
2
mechanic/chauffeur
1
1
5.
Distribution/Supply flow
Small Plant
Medium Plant
Amount in/out per day
60 doz.
80-95 doz.
6.
Market Requirements
Small Plant
Medium Plant
-
1 million
(*)This
includes an approximate amount of materials used over a
period of a
year. It does not mean that a year's
supply must be
stored on the
premises.
PROCESS
DESCRIPTION
1. Diagram
<see plant layout and work flow>
bjx6.gif (600x600)
2. Remarks
Plant layout
indicates an orderly f low of work f rom cutting to
finished
goods. It should be fairly simple to arrange machines
and
operations according to need. An area
should be set aside
for design
and pattern making.
REFERENCES
Unless
otherwise stated, these addresses are in the United
States.
1.
Technical Manuals & Textbooks
Fashion
Institute of Technology 7th Ave. and 27th St.
New York, New
York 10001
Library and
Bookstore with full listing of books on design and
pattern-making,
marketing, etc.
Who Puts the
Blue in the Jeans? Adventures in the World of Work.
Random House,
Inc. 1976. 73 pp.
2.
Periodicals
Women's Wear
Daily & Daily News Record
Fairchild
Publications
7 E 12th
Street
New York, New
York 10003
Bobbin
Magazine
Bobbin
International, Inc.
PO Box 1986
1110 Shop
Road
Columbia,
South Carolina 29202
Apparel
Industries Magazine
180 Allen
Street
Atlanta,
Georgia 30328
Apparel World
366 Park
Avenue, South
New York, New
York 10016
3.
Trade Associations
American
Apparel Manufacturing Association
2500 Wilson
Blvd.
Arlington,
Virginia 22201
National
Knitwear & Sportswear Association
366 Park
Ave., South
New York, New
York 10016
4.
Equipment Suppliers, Engineering Companies
Hudson Sewing
Machine Co.
109 Johnston
St.
Newburgh, New
York 12550
(dealer in
all types of equipment)
The Singer
Company
135 Raritan
Center Parkway
Edison, New
Jersey 08837
(sewing room
equipment, cutting room equipment)
Kurt Salmon
Associates
350 Fifth
Avenue
New York, New
York 10118
(management
consultants, consulting services)
5.
Directories
Buyers Guide:
A Source
Guide for the Apparel Industry,
produced by
The Associate Membership Congress
American
Apparel Manufacturers Association
2500 Wilson
Boulevard
Arlington,
Virginia 22201
6.
VITA Resources
VITA has on
file a number of documents related to the textile and
apparel
industry. For example:
Selected
Information Resources on Textiles.
Compiled by J.A.
Feulner,
National Referral Center, Library of Congress, May,
1980. 17 pp.
XII-E-1, P. 1, 022470, 12.
7. VITA
Venture Services
VITA Venture
Services, a subsidiary of VITA, provides commercial
services for
industrial development. This fee-for-service
includes
technology and financial information, technical assistance,
marketing,
and joint ventures. For further
information,
contact VITA.
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