AI-powered monitoring boosts RMG productivity by up to 25%

Infographic: TBS

Bangladeshi readymade garment exporters are increasingly installing artificial intelligence-driven Internet of Things (IoT) devices on their production lines to boost productivity and maintain global competitiveness.

Some factories have installed the technology on part of their production lines, while others have connected every sewing machine to the system. Industry sources said a significant number of major export-oriented factories are planning to introduce similar technology.

Factory owners and officials said the systems can increase productivity by providing real-time information on production, machine performance and defects, with some factories reporting gains of up to 25% compared with manual monitoring.

Factories currently using such systems include Snowtex Group in Dhamrai, Fatullah Apparels in Narayanganj, Team Group in Savar, a Yunusco Group factory in Adamjee EPZ, and Sparrow Group in Bhaluka, Mymensingh. Some have introduced the systems partially.

An IoT-based production monitoring system was first introduced at the production stage by Fatullah Apparels in late 2020, according to industry sources.

Snowtex leads large-scale adoption
Snowtex Group appears to have introduced the technology on the largest scale among the factories contacted by The Business Standard.

During a visit to a Snowtex factory in Dhamrai last week, IoT devices were seen attached to sewing machines across the production floor. Company officials said the devices have been in use since 2023 on all around 10,000 sewing machines across its factories.

SM Khaled, managing director of Snowtex Group, said the company had observed a productivity increase of up to 25% after introducing the system.

"Our observation is that productivity has increased by up to 25% compared with the manual system," he said.

The system allows factory managers to see real-time production by individual machines and operators. If a machine slows down or a defect occurs, the problem is displayed on a central monitoring screen, allowing line chiefs or production managers to take action quickly.

Officials said the system can also identify whether a problem is linked to a particular machine or operator. This allows managers to respond more quickly and reduce downtime.

Others follow suit
Sparrow Group began using the system about six months ago. The company, which exports around $350 million a year, has installed the devices on about half of its sewing machines, said its Managing Director Shovon Islam.

"We have observed a 5% to 10% increase in productivity compared with the manual system," he said.

Sparrow plans to install the devices on all its sewing machines by 2027, he said, adding that the system is used to monitor both productivity and quality.

Ha-Meem Group, DBL Group, Urmi Group and Fakir Fashions are among the other major exporters planning to introduce production monitoring systems, industry sources said.

How the system works
The technology connects an IoT device to each sewing machine, with the relevant operator's name and identification number linked to the system.

Devices on each production floor are connected to a central system that displays production data. At Snowtex, the devices across its factories are also connected to a central database, allowing senior management to monitor production performance.

When a problem is resolved, the responsible employee can record the action through a designated mobile application. This allows managers to identify who addressed the problem and how long it took to resolve.

Factory officials and experts said the exact devices and software differ according to the needs of individual factories, although their basic functions are broadly similar.

An IT specialist at a factory, speaking on condition of anonymity, said the system has reduced the time needed to identify and resolve production-floor problems.

"Under the manual system, it took time to identify a problem on a production floor, and resolving it could also be delayed," the specialist said. "Now, when a problem occurs, there is competition to respond quickly because this is also an indicator of performance."

Workers receive production incentives
The introduction of digital monitoring is also being accompanied by more specific production targets and incentive schemes for workers.

Factories are setting hourly production targets for operators, with production incentive bonuses offered to workers who meet or exceed their targets. The bonuses are assessed based on production performance and defect rates.

Afizul, a Snowtex worker, said the introduction of PIB had created an opportunity for workers to earn an additional Tk2,000 to Tk3,000 a month on average.

Sharmin Akter, an operator at the factory, said she earns around Tk2,000 a month in additional bonuses after the new targets were introduced. Including overtime and other benefits, her monthly earnings have reached as much as Tk28,000, she said.

Workers with higher defect rates receive lower incentive bonuses, according to factory officials.

Labour leaders raise concerns over pressure
Labour leaders, however, argue that technology-driven productivity targets could increase pressure on workers.

Nazma Akter, executive director of Awaj Foundation, said workers could be expected to produce more than their physical capacity as factories adopt new technologies in the name of industrial engineering and higher productivity.

She argued that the additional incentives were insufficient to compensate workers for the increased pressure.

Interviews with workers produced mixed responses. One worker at a Dhaka factory said her hourly production target had increased from 28-30 pieces to 35 pieces after the introduction of the monitoring system.

Another worker said the pressure had increased somewhat but that she is satisfied because the system allows her to earn additional money at the end of the month.

Snowtex's SM Khaled rejected the argument that the technology increases workers' workload.

"When a problem occurs, we can identify whether it is caused by a machine, a guide or something else and resolve it quickly," he said. "This increases production, but it does not create additional pressure on workers."

A senior IT official at Team Group also said the system is designed to make better use of non-productive and idle time by identifying and resolving problems quickly rather than increasing workers' workload.

Digitalisation seen as key to global competition
Fazlee Shamim Ehsan, president of the Bangladesh Employers Federation, said Bangladesh remains behind China, Vietnam, Indonesia and Cambodia in terms of productivity.

He said digitalisation is becoming essential for Bangladesh's garment industry to remain competitive with these countries.

According to Ehsan, worker efficiency is estimated at 40%-50% in Bangladesh, compared with 60%-70% in China and Vietnam.

"For our businesses to remain competitive, there is no alternative to implementing digitalisation in industry," he said.