Production Efficiency in the Readymade Garment Sector: To date we have carried out analysis on a project evaluating the effectiveness of a consulting intervention implemented by Impactt Consulting, Ltd. WThe consulting intervention was fully delivered in 25 large factories, and the analysis as based on both administrative records and baseline plus two follow-up surveys conducted with production workers and managers in participating factories. The initial results suggest that the consulting intervention did lead to some significant changes in practices and outcomes, but that these changes were quite modest in magnitude. We are still working to understand why even the most straightforward of the practices taught in the program had such low take-up rates among participating factories.
Work Progression Toolkit: A second project central to the work carried out to date was undertaken in collaboration with the International Finance Corporation (IFC, a unit of the World Bank) and the IFC / ILO Better Work Bangladesh program. The goal was to develop and test a module for the Better Work program that prepared female sewing machine operators to move into management positions. (Around 75 per cent of production floor workers in the sector are female, while 95 per cent of supervisors are male.) Fieldwork for this project was carried out in 27 factories during this reporting period. The factories nominated 240 female sewing machine operators for training. We completed diagnostics for each of the nominees, who then attended training and received trials as assistant line supervisors. Trainees were randomised to receive soft skills training alone, or soft skills training combined with technical training at the start of the trial period. Initial analysis of the data indicates that the combined soft-skills and technical training was effective in the transition to supervisory roles, while the soft skill training alone was not. Importantly, we find that diagnostic scores reflecting attitudes of the trainees at baseline predict both completion of the training program and effectiveness as a line supervisor. In particular, the extent to which the trainee’s family supports her working as a supervisor predicts completion of the training program, and the trainee’s initial confidence in her ability and desire to work as a supervisor predict performance in the role. We are presently discussing the results with the IFC and Better Work with the aim of helping them scale the project in Bangladesh and perhaps other countries.
“Small-n” project: In this project, we work intensively with a small number of factories in Bangladesh. The data we have collected from the larger sample of factories reveals two patterns: 1) There are substantial productivity differences across factories; and 2) There is substantial and persistent variation in productivity across production lines within factories. These patterns raise questions of differences in management practices across factories, and across lines within factories. For example, what prevents factories from spreading lessons from highly productive lines to less productive lines? The “small-n” project is designed to provide insight to this question. We began by analysing production data from the three participating factories, including an analysis benchmarking their outcomes to averages across other factories in the industry. This analysis was a first step in designing a set of interventions implemented at the line- or floor-level. We then measure and report to factory management the outcomes of these interventions. We are currently in the process of analysing the data from this project. We are interested in understanding both issues that arise when the interventions are implemented, and the way management uses the information provided on the outcomes of the interventions. We believe both of these will contribute to the literature on productivity and management practices by deepening our understanding of the decision-making processes within firms, and how these processes affect firm productivity.
