Distribution Network
Content
Overtime was reduced in all factories that took part in a three-year
project conducted among the Chinese partners of western companies by
Impactt, the international ethical consultancy specializing in supply
chains.
The number of workers' days off increased and, although this change was not wholly consistent with Chinese law, it was a starting point for more improvements.
Impactt's Overtime Project involved labour-intensive manufacturers of garments, beauty products, furniture and accessory products in Guangdong province, Hangzhou and Xiamen supplying 11 companies – Body Shop International, Debenhams, Hennes & Mauritz, Ikea, Kingfisher, Lambert Howarth, Marks & Spencer, Next, New Look, Pentland/Ellesse and Sainsbury.
In its report, just released, Impactt emphasizes that part of the process was improving quality management, and the result was a 25 per cent reduction in the number of orders sent back by buyers for re-working. One factory achieved a productivity increase of 190 per cent.
The achievements were reflected in pay. When productivity rose and hours were cut, pay at least remained static but in most cases increased.
Impactt found a big factor in teh success was the switch from punitive measures such as fines to incentives, including quality bonuses and loyalty payments.
However, communication was an area in which little progress was achieved. At the end of the project workers had hardly any way of putting their concerns to management and said they felt uncomfortable doing so.
The number of workers' days off increased and, although this change was not wholly consistent with Chinese law, it was a starting point for more improvements.
Impactt's Overtime Project involved labour-intensive manufacturers of garments, beauty products, furniture and accessory products in Guangdong province, Hangzhou and Xiamen supplying 11 companies – Body Shop International, Debenhams, Hennes & Mauritz, Ikea, Kingfisher, Lambert Howarth, Marks & Spencer, Next, New Look, Pentland/Ellesse and Sainsbury.
In its report, just released, Impactt emphasizes that part of the process was improving quality management, and the result was a 25 per cent reduction in the number of orders sent back by buyers for re-working. One factory achieved a productivity increase of 190 per cent.
The achievements were reflected in pay. When productivity rose and hours were cut, pay at least remained static but in most cases increased.
Impactt found a big factor in teh success was the switch from punitive measures such as fines to incentives, including quality bonuses and loyalty payments.
However, communication was an area in which little progress was achieved. At the end of the project workers had hardly any way of putting their concerns to management and said they felt uncomfortable doing so.
Super Featured
No
Featured
No