Disclaimer:
Please be aware that the content herein has not been peer reviewed. It consists of personal reflections, insights, and learnings of the contributor(s). It may not be exhaustive, nor does it aim to be authoritative knowledge.
Overview
Prepared by (Name of the experimenter)
AccLabPY
On date (Day/Month/Year)
30/01/2023
Current status of experimental activity
Completed
What portfolio does this activity correspond to? If any
Employment Formalization (through labor productivity)
What is the frontier challenge does this activity responds to?
This activity is framed within the frontier challenge "Employment formalization", as increasing productivity of the garment workshops in Yaguarón can be pathway toward their formalization.
What is the learning question(from your action learning plan) is this activity related to?
The original learning question of our action plan was: how can we increase access to social insurance and improve the economic and physical security of employment in Paraguay's informal economy, particularly for women and in the recycling, construction, domestic work, and apparel industries?
Please categorize the type that best identifies this experimental activity:
Quasi Experimental (Analytical, observations, etc), Fully Randomised (RCTs, etc.)
Which sector are you partnering with for this activity? Please select all that apply
United Nations agency, Public Sector, Private Sector, Civil Society/ NGOs
Please list the names of partners mentioned in the previous question:
Asociación de Confeccionistas de Yaguarón
Municipality of Yaguarón
Martel (private garments distribution and selling company)
Education and Science Ministry
National Innovation Strategy / Presidential Delivery Unit
Design
What is the specific learning intent of the activity?
Our intent is to evaluate the effect of technical training and quality monitoring in the productive efficiency of new products within a garment cluster in the city of Yaguarón, Paraguay.
What is your hypothesis? IF... THEN....
Our hypothesis suggests that a combination of (1) training workshop owners on industrial time measurements, and (2) training workshop workers on production techniques while implementing continuous quality control of their work, should improve the productive efficiency of the workshops.
Does the activity use a control group for comparison?
Yes, a different group entirely
How is the intervention assigned to different groups in your experiment?
Random assignment
Describe which actions will you take to test your hypothesis:
The intervention was carried out in 2021, for a 2-month period in November and December. It consisted of a baseline component and an experimental component.
The baseline component included the following activities:
(a) the production of 7 prototypes of school overalls by each garment workshop interested in participating of the experiment, to diagnose their production and quality problems.
(b) the training of 21 instructors from the Textile and Garment Department of the Professional Promotion National Service (SNPP) in industrial timing and quality control specifically for school overalls, and
(c) the production of 3,000 school overalls by 15 small and medium-sized garment f workshops.
The experimental component included the following activities:
(a) half-day training for workshop owners on industrial time control, operational sequences, and production cost per minute, to generate awareness and knowledge of the value of the cost-time of production of the school overalls,
(b) 20-minute basic training for operators (seamstresses) on sewing techniques manufacturing and quality control of school overalls, and
(c) continuous quality control during the manufacturing process of the school overalls by the monitors who received training in the baseline component. The objective was to stop the production when detecting quality or efficiency problems and proposing alternatives and techniques of production to optimize production time and quality for the batch assigned to the garment workshop, in addition to recording production times and the percentage of rejections, which were later used in the evaluation of the experimental intervention.
An important side note: all the school overalls produced by this experimental intervention were donated to the Education and Science Ministry, which in turn has donated these overalls to low-income schools in different regions of the country. The production of the overalls was, in turn, part of a real contract between each garment workshop and a well-known private garments company, which in turn handled the logistics of delivering these school overalls to the Education and Science Ministry. The experiment was, therefore, an excellent case of multisectoral collaboration on a learning-oriented activity, which in turn had a positive externality: the donation of school overalls to low-income schools.
Results
Was the original hypothesis (If.. then) proven or disproven?
On average, the garment workshops in the treatment group used less number of minutes and received fewer rejections than the control group. In addition, the treatment group also took fewer days to complete the production. Therefore, the experiment shows that when garment workshops receive training on industrial processes and quality control, they improve their productive efficiency. The average of the productive efficiency for the control group is 79%, while the average for the treatment group is 52%. That is, the result indicates better performance for the treatment group. The difference of 27.14 in favor of the treatment group comes from the fact that this group was able, on average, to produce a school overall every 12.6 minutes, while the garments in the control group did it in 6.4 more minutes.
These results were subjected to a formal mean difference test to determine if the differences are statistically significant. With a p-value of 0.0348, the null hypothesis is rejected, so we conclude that the differences found in the average productive efficiency of the treatment and control groups are statistically significant. Likewise, we observed that there is a marked difference in the number of rejections between the treatment and control groups. The first group had an average of 10.83 rejected school overalls, while the control group doubled this number, reaching an average of 21.89 rejected overalls. Similarly, we applied a mean difference test to determine the statistical significance of the identified difference. In this case, the difference between the average number of rejections between the treatment and control groups is not statistically significant (p-value=0.1279).
During the experimentation period, we also made qualitative observations that we detail below. For the garment workshops, participating in the experiment involved producing a new product for a new customer in a very short period. The production of school overalls in a cluster traditionally dedicated to the production of jeans represented a challenge of flexibility and agility. To meet the request and these challenges, the workshops mobilized both their informal family and social relationships, as well as the more formal organizational relationships present in the cluster. The blurred line between the family home economy and entrepreneurship allows, on the one hand, high flexibility to respond to short peaks in demand, extending the hours worked and involving occasional family labor to respond to said temporary demand.
In addition to the particularities identified in the internal functioning of the workshop, our observations suggest that family networks, and the trust that resides within them, can be an important asset for the rapid formation of subcontractual exchanges. In addition to these informal relationships, we also observe associative relationships, articulated through the Yaguarón Garment Association (ACY), which serve as an asset to respond quickly and flexibly to demand peaks and demands for new products.
Learning
What do you know now about the action plan learning question that you did not know before? What were your main learnings during this experiment?
A central conclusion that emerges from this learning cycle is that the development of services and common or collective assets for garment clusters is an essential step to exploit their potential to adopt flexible manufacturing strategies. The experiment carried out demonstrates that when an entity external to the garment workshops provides a collective service, such as continuous quality monitoring, has a measurable impact in production efficiency. This means that this type of investment are rational and profitable, in addition to generating an economic and social return.
What were the main obstacles and challenges you encountered during this activity?
We faced many logistical challenges related to the interest of the workshops to participate in the intervention. This was mainly due to the time of year in which it was made, since the production of the school overalls took place during November 2021, a month that is characterized by demand peaks for clothing manufacturers. In addition, the intervention involved the manufacture of white overalls, and the workshops had to make important logistical changes within their production processes, since the simultaneous manufacturing of jeans (the product in which they are specialized) could compromise the quality of the overalls made. These factors decreased the number of workshops that finally participated in the intervention.
Who at UNDP might benefit from the results of this experimental activity? Why?
The Inclusive Development Portfolio of our CO also focuses on some activities related to employment formalization and our findings could help to shape and design new projects and activities oriented to improve the productivity of some industries such as the garment workshops, strengthening their processes and capacities as a step to encourage the formalization of these workshops and their collaborators.
Who outside UNDP might benefit from the results of this experiment? and why?
1. The Ministry of Industry and Commerce, since the results show that offering training and monitoring by the National Professional Promotion Service (SNPP), s a service offered by the Ministry of Labor, can be very effective in increasing the productivity of the garment sector, one of the productive sectors with the highest growth in the last 20 years (35%) and with greater flexibility to adapt to different challenges.
2. Garment workshop that receives the trainings in quality control and industrial time can improve their productive efficiency by following the indications and knowledge they gained.
3. The Association of Clothing Manufacturers of Yaguarón (ACY) as one of the findings of the experiment is that the association and networking between the different garment workshops is key to boosting Yaguarón's flexible manufacturing capacity.
4. The municipality of Yaguarón, given that the findings of the experiment and the exploration activities of this learning loop indicate that the Yaguarón cluster has the potential to grow, which could boost the industrial and productive growth of this region, generating jobs and other socioeconomic benefits.
Comments
Log in to add a comment or reply.