Cambodia’s garment sector employs more than 270,000 people, mostly young women from the countryside, earns more than $2 billion in exports annually, and contributes about $400 million per year to the country’s GDP.
How can the sector keep up this level of performance as it faces two challenges: the expiration of the Multi-Fiber Agreement in 2005 and the country’s decision to join the WTO It must boost productivity.
Aiming for Long-term Results
Drawing on a 2005 study by Nathan Associates, the purpose of the USAID-sponsored GIPC, a $3.4 million project, is to
- Raise productivity by training factory managers, supervisors, and team leaders in modern management techniques
- Prepare Cambodians to contribute to a stable yet diverse manufacturing economy, characterized by sound economic governance and supported by a shared vision for productivity and prosperity and
- Create a training organization that can improve productivity and industrial skills so that Cambodia becomes a supplier of choice in the international apparel market.
Training for Immediate Benefit
The Nathan-managed GIPC project has introduced a program to (1) train supervisors and middle managers in modern industrial engineering techniques, and (2) train a corps of technical advisors and consultants to work with factories to improve performance.
The GIPC’s curriculum for improving management and economic governance also complements Cambodian manufacturers admirable progress in labor standards.
Measuring the Benefit
The GIPC and participating companies measure productivity before and periodically after training to ensure that methods are applied correctly. Trainees gain knowledge and acquire skills that benefit them and their companies immediately. They learn, for example, about core manufacturing principles of time study and line balancing and controls, and how to apply these principles to operations.
We expect that participating companies will enjoy production gains through efficiency, cost-effective use of time and materials, more accurate pricing, and better control of quality, production, and timing.
In March 2006, the GIPC completed part of its pilot program, a two-week introduction to time study and work flow for three factories.
Sixty-four percent of trainees said that the course will help them improve their job performance.
For more information, please visit the project website or contact
+(855-23) 221-429 (fax)
2005 - 2009