Investigating the impact of normal and abnormal loss factors in garment industry: A case study based on a jeans manufacturer in India

Abstract

This study aimed to analyse the normal and abnormal loss of a jeans manufacturing company in India. Personal interview and observation method are used in this study. Abnormal loss in quantity and rupee value is computed for 40 days of production based on the observed data. Mean abnormal losses are computed and one sample t-test is applied to test the hypotheses that the mean abnormal loss is not equal to zero. The study revealed that a normal loss of 3 to 5% is expected in any garment manufacturing company due to loss during the cutting and shrinkage process. The p-values of one sample t-test were less than 0.05 for all the tested hypotheses, hence, all the null hypotheses (H01 to H05 mean abnormal losses equal to zero) were rejected. Further, it was found that fabric is the big contributor in terms of abnormal loss. Hence, proper training for workers and recruiting of trained workers are advised to reduce abnormal losses.