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Chapter 13 of 14 · Part IV · Draft web edition

Unit economics improve only when losses close

The financial benefit is not a higher dashboard score; it is more good garments at acceptable labour, energy, capital and working-capital cost.

Sections
7
Exhibits
5
Minutes
28
Sources
46
EX 61 · Performance (+100): removes 18.8. Running total 141 XAF fixed cost per good garment

The cloth is woven from this chapter's 5 exhibits: each weft is one exhibit's own data, normalised; each warp group is a section. The probe reads the exhibit's own value where it crosses. Procedural visualisation, not a measurement.

The chapter as a draft: 7 sections, 4 exhibit wefts, one shuttle.

Lead exhibit · 61ReconciliationderivedGood output lowers fixed cost per garment
050100150200200Baseline (600 good)-40Availability (+150)-18.8Performance (+100)-7.9Quality (+50)133Improved (900 good)

Read-outBaseline (600 good): total 200. Running total 200 XAF fixed cost per good garment

Method and source

Derived with illustrative inputs: XAF 120,000 fixed shift production cost divided by 600 baseline good garments equals XAF 200.00 per garment. Sequential recovery of 150 availability-equivalent units (to 750 units, XAF 160.00), 100 performance-equivalent units (to 850 units, XAF 141.18) and 50 quality-equivalent units (to 900 units, XAF 133.33) reduces fixed cost per garment by XAF 66.67 (33.33 per cent). Multiplicative loss categories follow S04; underutilisation context follows R12.

Unit: XAF fixed cost per good garment. Status: derived. Sources: R12, S04.

The chapter's warpBar: share of the reading · square: an exhibit

Section 13.0 · Opening · 1 min · no exhibit of its own · one movement Go to section ↓

Overture · 1 min

A garment factory does not bank an overall equipment effectiveness percentage or a theoretical line-balance ratio. It banks the margin between the revenue of shipped, first-quality garments and the total cost of the labour, electricity, materials, working capital and machinery required to produce them.[S04][S13] Across the preceding chapters, this paper has treated availability, speed, quality, standard minutes, constraint balancing and pull-based flow as one connected operating system. This chapter translates that operating system into unit economics. Its core argument is that unit cost falls sustainably only when real losses close at the system constraint without reappearing as rework, excess work in progress, exhausting overtime or oversized energy infrastructure.[S04][S30][S41][S44] In Cameroon, where reported capacity utilisation at incumbent textile plants stood between 10.83 and 48.9 per cent in July 2023 and underutilisation alone was reported to cost about CFAF 2 billion in 2020, the financial viability of domestic cotton-to-garment processing depends on how reliably installed lines convert attended hours into saleable output.[R06][R12]

¶ 01 · 7 sources

…incumbent textile plants stood between 10.83 and 48.9 per cent in July 2023 and…R06, R12

S04S13S30S41S44R06R12

13.14 min · 2 sub-steps · 1 exhibit

Fixed cost is absorbed by good output

Related · chapter 117 paragraphs step it

Related exhibit 51 · chapter 11ReconciliationderivedRework taxes capacity twice by removing good output and consuming repair minutes
0200400600500Scheduledshift ba…-50Availabilitydowntime-70Speed andmicro-stops380Grosspieces s…-57First-passdefects-24Displacedby re-se…299Netfirst-pa…

Read-outScheduled shift base: total 500. Running total 500 good-garment equivalents per shift

Method and source

Derived with illustrative inputs using the OEE loss structure in S04 and SMV accounting in S13: 500 scheduled shift garment equivalents less 50 availability loss and 70 speed loss leaves 380 gross pieces completed; 57 defective pieces (15 per cent first-pass defect share) reduce first-pass good output to 323 pieces, while inline re-sewing of 48 repairable pieces at 0.5 garment-equivalent cycle each displaces 24 additional new-garment equivalents of station capacity, leaving 299 net first-pass equivalents.

Unit: good-garment equivalents per shift. Status: derived. Sources: S04, S13.

Read this exhibit in its chapter ↗
13.1 · Introduction · paragraph 1 of 7

13.2 Nameplate capacity creates an accounting obligation before it creates revenue

Every industrial garment programme commits to fixed and semi-fixed period costs before the first bundle leaves the cutting room. Building lease or depreciation charges, sewing and pressing machinery amortisation, core supervisory and administrative salaries, security, insurance, software licences and contracted demand charges for electricity accrue by the calendar month rather than by the finished piece.[S01][S34] When a sponsor evaluates a factory on its nameplate machine count, those period costs are divided in the business plan by an assumed volume that reflects continuous operation at nominal speed. On the floor, however, period costs can only be absorbed by good output: units that pass final inspection and meet the customer's delivery specification.[S04] Every availability stop, speed loss, balancing delay and rejected garment shrinks the denominator of good units while leaving fixed period obligations unchanged.[S02][S04]

The economic distance between installed capacity and absorbed cost is visible in Cameroon's textile record. While roughly 95 per cent of national cotton fibre is exported raw and about 5 per cent is processed locally against a national target of 50 per cent by 2030, existing industrial assets have struggled to convert physical plant into sustained output.[R06][R07] In the July 2023 account of incumbent manufacturer CICAM, capacity utilisation was reported at 33.7 per cent at Garoua, 48.9 per cent at CICAM 1 and 10.83 per cent at CICAM 2, with prior underutilisation reported to have cost roughly CFAF 2 billion in 2020.[R12] Restructuring cost estimates for the incumbent ranged from CFAF 30.7 billion to CFAF 48.2 billion, with one relaunch plan cited at CFAF 70.2 billion, whereas the Camtext SA project announced on 12 November 2025 carries a capital commitment of US$300 million (180 billion XAF) to process 12,000 tonnes a year, with a projected return on investment near 11 years and optimal capacity around 2033.[R09][R10][R13] Whether restructuring legacy lines or commissioning greenfield capacity, capital recovery is governed by the volume of good output crossing the finishing boundary each shift.[R10][R12]

13.3 Good throughput at the constraint governs overhead absorption

GFT's Cameroon textile programme treats capacity utilisation and effective labour cost as the primary swing variables in factory unit economics. In a dependent sewing line, fixed-cost absorption is governed by the rate of good garments emerging from the constraint operation, not by average station busyness.[S30] If an upstream station runs fast while the bottleneck is starved, blocked or stopped for adjustment, the factory accumulates work in progress (WIP) rather than finished goods.[S09][S20][S30] Under Little's Law, for a stable system in long-term average conditions, extra WIP without a rise in constraint throughput simply lengthens throughput time, tying up working capital in cut fabric and delaying defect detection.[S22][S31][S32]

To keep unit economics grounded in physical reality, GFT separates five cost channels before claiming any financial gain from a productivity initiative:

  • Fixed production overhead per good unit: period depreciation, facility, management and fixed utility charges divided strictly by first-pass and acceptably repaired garments delivered in the period, an illustrative boundary grounded in OEE quality rules.[S04][S34]
  • Direct and indirect labour per good unit: attended operator, helper, mechanic and supervisor wages, social charges and lawful overtime premiums divided by good output, reflecting earned standard minutes rather than nominal headcount.[R16][S13][S1301]
  • Quality and rework cost: direct labour minutes, thread, trim and machine time consumed in unpicking and re-sewing defective seams, plus material scrap and margin loss on seconds or rejects.[S04][S09][S12]
  • Energy and utility cost per good unit: fixed subscribed-demand charges, variable grid kilowatt-hours across tariff schedules and backup generator fuel divided by good output.[S34][S35][S44]
  • Working-capital holding cost: financing cost, storage footprint and obsolescence risk of raw materials and bundles waiting between cutting, sewing and packing.[S22][S23][S31]

The effect of closing multiplicative OEE losses on fixed-cost absorption is shown in Exhibit 61. In this derived model using illustrative inputs, a sewing line carries XAF 120,000 of fixed production cost per shift. When availability, performance and quality losses hold output to 600 good garments per shift, each garment absorbs XAF 200.00 of fixed cost.[S04] Recovering 150 good garments through availability, 100 through performance and 50 through first-pass quality raises shift output to 900 good garments and lowers fixed cost to XAF 133.33 per garment, a 33.33 per cent unit reduction achieved without adding machines.[S02][S04]

As Exhibit 61 demonstrates, the unit-cost reduction is largest on the initial recovery of good volume because fixed cost per unit follows a reciprocal curve against output.[S04] However, Exhibit 61 cannot establish that those 300 additional garments have a buyer or that material supply is available to feed the line. Producing 900 garments against a confirmed order of 600 without an authorised downstream pull signal merely converts cash into unsold stock.[S24][S28] Overhead absorption improves unit economics only when recovered capacity produces ordered, defect-free garments that convert into cash.[S04][S24]

13.44 min · 2 sub-steps · 1 exhibit

Low nominal wages do not remove the productivity problem

Step 1 of 3Intro

Related exhibit 16 · chapter 04ReconciliationderivedEarned minutes reconcile output to attended labour
01,0002,0003,0004,0003,840Attendedminutes-480Unplanneddowntime-1,440Balanceand queue…-1,248Pace andskill gap-152Rework anddefects520Earnedstandard…

Read-outAttended minutes: total 3,840. Running total 3,840 labour minutes per shift

Method and source

Derived with illustrative inputs using the SMV and efficiency formulas in S13 and S0402: operation SMVs of 0.8 + 1.2 + 0.6 = 2.6 minutes; 200 good pieces earn 520 standard minutes; 8 operators x 480 minutes = 3,840 attended minutes (13.54 percent efficiency). Intermediate loss buckets are illustrative allocations of the 3,320 unrecovered minutes.

Unit: labour minutes per shift. Status: derived. Sources: S13, S0402.

Read this exhibit in its chapter ↗

13.4 · Introduction

Exhibit 16, chapter 04: Attended minutes

13.5 · Monthly wage comparisons mislead when divorced from standard minutes

A persistent error in industrial feasibility studies for emerging textile economies is to equate a low statutory minimum wage with a low unit labour cost.

Exhibit 16, chapter 04: Attended minutes

13.6 · Learning, turnover and rework multiply effective labour cost

Human proficiency and retention directly alter the denominator of earned minutes.

Exhibit 16, chapter 04: Unplanned downtime

13.4 · the bodyThe film above follows these sub-steps.

13.5 Monthly wage comparisons mislead when divorced from standard minutes

A persistent error in industrial feasibility studies for emerging textile economies is to equate a low statutory minimum wage with a low unit labour cost. In the shared evidence register, Cameroon's statutory minimum wage (SMIG) stood at XAF 41,875 a month in 2023 and was raised to XAF 43,969 a month from 23 February 2024, equivalent to about US$76 a month and representing a 5 per cent increase.[R14] By comparison, the register records an average salary across sectors in Cameroon of about US$359 a month, and a Cambodia garment-sector minimum wage benchmark of US$204 a month for 2024 (with currency conversions treated as estimates against a CFA franc peg of 655.957 per euro and reference ranges near 590 to 610 per US dollar in 2023 and 563 to 577 more recently).[R15][R17][R32] Looked at solely as monthly payroll figures in Exhibit 62, the statutory floor in Cameroon appears far below the Asian garment benchmark.[R14][R17]

¶ 01 · 4 sources

equivalent to about US$76 a month and representing a 5 per cent increaseR14

Exhibit 62

R14R15R17R32

The comparison in Exhibit 62 is incomplete for three operational reasons. First, a factory sells standard minutes of garment work content embedded in finished pieces, not attended months.[S13][S1301] Cut and Make (CM) labour cost per piece equals the garment's Standard Minute Value (SMV) multiplied by direct labour cost per attended minute, divided by achieved line efficiency.[S13][S1301] When line efficiency falls because of poor balancing, waiting for bundles, breakdowns or learning gaps, labour cost per earned minute rises in inverse proportion.[S09][S15][S1301] Second, factories require mechanics, inspectors, cutters, supervisors and planners paid well above the statutory minimum wage, moving blended payroll toward higher formal-sector brackets.[R14][R15][S40] Third, statutory working hours in Cameroon are bounded by the 40-hour non-agricultural week in the Labour Code, with a 48-hour maximum and overtime paid at 1.2 times the base rate.[R16][S33] Relying on chronic overtime to offset low daytime efficiency raises hourly wage rates while inducing fatigue that depresses output over the long run.[R16][S41]

¶ 02 · 10 sources

statutory working hours in Cameroon are bounded by the 40-hour non-agricultural week in the Labour CodeR16, S33

Exhibit 62

S13S1301S09S15R14R15S40R16S33S41

13.6 Learning, turnover and rework multiply effective labour cost

13.6

Human proficiency and retention directly alter the denominator of earned minutes. In the apparel manual-skill study cited earlier, manual-machine operators increased their average capacity from 60.6 per cent to 79.4 per cent over six weeks.[S18] In the ILO SCORE case at Edget Garment in Ethiopia, line-balance efficiency rose from 24 per cent to 75 per cent and daily output increased from 50 to 120 pieces when work was rebalanced and workplace cooperation was introduced.[S37] Moreover, learned capability is perishable: in the UNU-WIDER panel study of Ethiopian manufacturing workers, almost one-third left before six months and half left within the first year.[S39] While that turnover rate is an Ethiopian observation rather than a Cameroon forecast, it demonstrates the cost mechanism: when an experienced operator leaves a critical station, the line returns to the lower end of the learning curve, training costs recur and downstream stations wait.[S18][S39]

¶ 03 · 3 sources

…increased their average capacity from 60.6 per cent to 79.4 per cent over six…S18

S18S37S39

Quality losses compound the labour penalty. When a garment fails inspection and requires unpicking and re-sewing, operator minutes consumed per unit rise while earned standard minutes remain fixed.[S04][S13] Individual piece-rate incentives that reward raw speed without a quality gate encourage operators to push defective bundles forward, creating long lead times and low quality as documented in NBER evidence.[S32] Conversely, the ILO Factory Improvement Toolset programme across Asian garment factories showed that structured industrial engineering raised sewing-room line achievement by 9.49 per cent while reducing both WIP and defects per hundred units by 22 per cent.[S12] Better Work Ethiopia similarly reported that lines led by newly trained supervisors achieved higher productivity and quality alongside reduced absenteeism.[S40]

¶ 04 · 5 sources

…raised sewing-room line achievement by 9.49 per cent while reducing both WIP and defects…S12

S04S13S32S12S40

This arithmetic explains why GFT's labour-cost tool evaluates wages, learning curves, turnover, absenteeism and SMV efficiency together rather than quoting statutory minimum wages in isolation.[R14][S13][S18][S39]

¶ 05 · 4 sources

R14S13S18S39

13.72 min · 2 sub-steps · 1 exhibit

Maintenance value should be read through lost capacity

13.8 Equipment breakdowns cost what the constraint loses

Total Productive Maintenance (TPM) targets zero breakdowns and zero defects by eliminating six losses: equipment breakdown, setup and adjustment slowdowns, idling and short-term stoppages, reduced capacity, quality-related losses and startup or restart losses.[S02] Treating preventive maintenance as a deferrable discretionary expense misreads the cost of lost capacity. In the apparel monitoring study of Company X, cumulative downtime logs showed 4,923 minutes lost to technical malfunction, 3,694 minutes to machine adjustment, 2,432 minutes to faulty needles and 1,427 minutes to thread breakage, disrupting downstream flow and generating stitch defects.[S06][S09]

¶ 01 · 3 sources

cumulative downtime logs showed 4,923 minutes lost to technical malfunctionS06, S09

S02S06S09

Empirical evidence from the NIST Manufacturing Extension Partnership (MEP) illustrates how structured maintenance translates into recovered capacity and avoided capital expenditure.[S08] In a documented NIST MEP case at a manufacturing cell experiencing recurring lathe breakdowns, implementing TPM reduced downtime, lifted cell productivity by about 22 per cent, raised OEE from 39 per cent to 45 per cent and cut lost capacity from 61 per cent to 55 per cent, as plotted in Exhibit 63.[S08] By recovering six percentage points of effective capacity on its bottleneck equipment and adding visual inspection cues, the plant avoided US$250,000 in new machine purchases.[S08]

¶ 02 · 1 source

lifted cell productivity by about 22 per centS08

Exhibit 63

S08

Exhibit 63Before and aftersourcedMaintenance improved OEE and reduced lost capacity in one NIST case
3040506070Overall equipment effectivenessLost capacity

Read-outOverall equipment effectiveness: Before TPM 39, After TPM 45. Difference +6 (per cent of cell capacity)

Method and source

Sourced from the NIST MEP case study (2022-10-04): after Total Productive Maintenance was implemented on a bottleneck machining cell, OEE increased from 39 to 45 per cent and lost capacity fell from 61 to 55 per cent. Single-case non-apparel limitation applies; demonstrates the capacity-recovery mechanism.

Unit: per cent of cell capacity. Status: sourced. Sources: S08.

While Exhibit 63 records a single non-apparel case and is not a fixed forecast for a sewing room, its economic mechanism applies directly to garment assembly.[S08][S09] Before buying extra lockstitch or overlock machines to meet an order target, management should check whether existing machines are losing 40 to 60 per cent of planned time to avoidable breakdowns, needle faults and adjustments.[S08][S09] Buying machines to mask unmaintained equipment inflates capital outlay, floor congestion and electrical load without fixing underlying failure modes.[S02][S08]

¶ 01 · 3 sources

…whether existing machines are losing 40 to 60 per cent of planned time to…S08, S09

Exhibit 63

S08S09S02

13.9 Maintenance return depends on station position in the flow

13.9

Not every minute of recovered machine availability carries the same financial value. Workstation OEE is affected by equipment-independent conditions such as input starvation.[S06] Conversely, Theory of Constraints establishes that an hour lost at the bottleneck is an hour lost for the whole line, whereas an hour lost at an unconstrained station with protective capacity may have zero effect on daily finished output.[S23][S30] GFT therefore evaluates maintenance economics across three operational tiers:

¶ 02 · 3 sources

S06S23S30

  1. Constraint and single-point-of-failure equipment: spreaders, cutters, fusing presses, steam systems and the highest-utilisation sewing stations identified by sustained upstream queues.[S20][S30] Breakdowns here directly reduce shippable garments once buffers empty, so preventive maintenance and critical spares earn the full contribution and overhead-absorption value of recovered line throughput.[S02][S20][S30]
  2. Quality-critical sewing and finishing stations: collar, cuff, placket, buttonhole, bartack and pressing stations where tension or temperature drift causes defects.[S02][S09] In Company X, Lock Stitch Repair and Stain accounted for 54.77 per cent of defects and the top five categories for 87.56 per cent.[S09] Maintenance here pays back by preventing rework labour, seconds discounts and scrap.[S04][S09]
  3. Non-constraint stations with protective capacity: basic seam operations whose cycle time sits well below line pitch time.[S16][S28] Operator autonomous maintenance (cleaning, lint removal, needle checks and lubrication) keeps downtime within the protective margin without costly sensors.[S02][S09]
Key figures from chapter 03 · Exhibit 12Key figuressourcedOutages belong in the capacity model
  • -9.0%TFP penalty in outage-exposed firmsAverage revenue-based TFP gap across 84 countries, 2006 to 2019 (S36)
  • 93.3%Cameroon firms experiencing outagesSurveyed Cameroon firms reporting outages in 2024 (S0301)
  • 2.0%Sales lost by affected Cameroon firmsReported sales value lost to outages in Cameroon in 2024 (S0302)

Read-outTFP penalty in outage-exposed firms: -9.0%. Average revenue-based TFP gap across 84 countries, 2006 to 2019 (S36)

Method and source

Sourced from World Bank research and Enterprise Survey indicators: unconditional average revenue-based total factor productivity (TFP) gap for outage-exposed manufacturers across 84 developing countries, 2006 to 2019 (S36); share of surveyed Cameroon firms experiencing electrical outages in 2024 (S0301); and average value lost due to electrical outages as a share of sales for affected Cameroon firms in 2024 (S0302). Cross-country and sector-aggregate figures are context, not a single-factory garment forecast.

Unit: percent. Status: sourced. Sources: S36, S0301, S0302.

Read this exhibit in its chapter ↗

13.102 min · 1 sub-steps · read with a related exhibit

Electricity cost contains fixed and variable elements

Related · chapter 12 · Exhibit 57Status lampssourcedOutages can destroy productivity before a sewing line starts

Read-out · sourcedProductivity penalty: -9%. Lower average revenue-based TFP for outage-exposed firms across 84 countries (S36)

Method and source

Sourced from World Bank 84-country manufacturing study 2006 to 2019 (S36) and World Bank Enterprise Surveys Cameroon 2024 Country Profile published 2025 (S1202). The 9% TFP gap is a multi-country average across 84 developing economies, not a Cameroon-only econometric estimate.

Unit: reported survey and econometric indicators. Status: sourced. Sources: S36, S1202.

Read this exhibit in chapter 12 ↗

13.11 Two-part industrial tariffs penalise low utilisation and peak spikes

13.11

In garment manufacturing, electricity powers sewing motors, cutting tables, air compressors, lighting, ventilation and electric steam or finishing loads.[S16][S43] In Cameroon, electricity regulator ARSEL issued Decision 00000427 on 12 December 2022 fixing untaxed electricity sale tariffs for medium-voltage (MT) customers served by utility ENEO.[S34] The regulatory text specifies two additive terms: a fixed monthly charge per kilowatt of subscribed demand and a variable charge per kilowatt-hour consumed, differentiated by operating hours and consumption schedules.[S34] Following a tariff freeze since 2012, the regulatory framework initiated progressive annual increases from 1 January 2023 through 2026 of 5 per cent per year for medium-voltage consumption between 0 and 3 MW and 10 per cent per year between 3 and 10 MW.[S1302]

¶ 01 · 4 sources

electricity regulator ARSEL issued Decision 00000427 on 12 December 2022 fixing untaxed electricity sale…S34

S16S43S34S1302

This two-part, rising tariff architecture links production discipline directly to unit energy cost:

¶ 02
  • Subscribed-demand dilution: Because the fixed demand charge (XAF per subscribed kW per month) is billed regardless of output, low utilisation leaves a fixed capacity charge sitting on a small garment volume, while uncoordinated simultaneous equipment starts force a higher subscribed kW tier.[S34][S44]
  • Time-of-use and overtime penalties: When daytime losses force evening overtime shifts to meet delivery dates, production shifts into higher-cost peak tariff windows while incurring the 1.2 times statutory overtime wage rate.[R16][S34][S41]
  • Outage and backup-generation premiums: IFC documents that Cameroon's grid supply is limited and unreliable.[S35] In the World Bank's study across 84 developing countries from 2006 to 2019, outage-exposed manufacturers showed a 9 per cent lower unconditional average revenue-based total factor productivity.[S36] Outages either halt output while wages and fixed demand charges continue or force diesel backup generation at a much higher cost per kWh.[S34][S36][S1302]

13.122 min · 2 sub-steps · 1 exhibit

Energy per garment can improve through the denominator alone

Step 1 of 4250 good units

Exhibit 64 · derivedBase load changes energy per garment without an efficiency gain

23456250 good…500 good…750 good…1,000 goo…
23456250 good…500 good…750 good…1,000 goo…

250 good units

250 good units: Total energy per garment 6, Variable process energy 2 (kWh per good garment) · derived

500 good units

500 good units: Total energy per garment 4, Variable process energy 2 (kWh per good garment) · derived

750 good units

750 good units: Total energy per garment 3.3, Variable process energy 2 (kWh per good garment) · derived

1,000 good units

1,000 good units: Total energy per garment 3, Variable process energy 2 (kWh per good garment) · derived

Method and source · Exhibit 64

Derived with illustrative inputs using the UNIDO base-load mechanism (S44): fixed shift base load of 1,000 kWh plus variable process energy of 2.0 kWh per good garment. Across 250, 500, 750 and 1,000 good garments, total energy intensity falls from 6.00 to 4.00, 3.33 and 3.00 kWh per garment purely from spreading the fixed 1,000 kWh base load, while variable process energy remains flat at 2.00 kWh per garment.

Unit: kWh per good garment. Status: derived. Sources: S44.

13.12 · the bodyExhibit 64 above; its figures are illustrative where marked.

13.13 Base load creates a false efficiency signal when volume rises

Sustainability scorecards and energy audits track specific energy consumption (SEC), defined as kilowatt-hours of electricity or megajoules of thermal energy per garment.[S44] UNIDO's Practical Guide for Implementing an Energy Management System warns that when a facility has a large fixed base load, production volume strongly distorts energy per unit.[S44] When volume rises, total energy is divided by more units, so the ratio falls and appears to show an improvement in energy performance even when no physical efficiency measure has occurred.[S44]

¶ 01 · 1 source

S44

In a garment factory, base load is substantial: hall and compound lighting, IT servers, central ventilation, compressor pressure maintenance against pipe leaks, and steam-boiler standing losses draw energy whenever the building is open, while clutch motors or idle control boards draw standby power between sewing bursts.[S16][S19][S43][S44]

¶ 02 · 4 sources

S16S19S43S44

The separation between a denominator effect and a process-efficiency gain is illustrated in Exhibit 64. Using the derived illustrative inputs from the paper outline, suppose a plant section consumes a fixed base load of 1,000 kWh per shift plus 2.0 kWh of variable process energy per good garment.[S44] At 250 good garments per shift, total energy is $1,000 + (250 \times 2.0) = 1,500\text{ kWh}$, or 6.00 kWh per garment. At 500 good garments, intensity drops to 4.00 kWh per garment; at 750 good garments, it is 3.33 kWh per garment; and at 1,000 good garments, total energy is $3,000\text{ kWh}$, or 3.00 kWh per garment.[S44]

¶ 03 · 1 source

…a fixed base load of 1,000 kWh per shift plus 2.0 kWh of variable…S44 · illustrative

Exhibit 64

S44

As Exhibit 64 shows, moving from 500 to 1,000 good garments per shift cuts total energy per garment by 25 per cent (from 4.00 to 3.00 kWh) without changing a motor, insulating a pipe or sealing an air leak.[S44] Diluting the 1,000 kWh base load over 1,000 garments saves 1.00 kWh of electricity cost and carbon emissions per garment relative to running two separate shifts at 500 garments each.[S16][S44] Yet mistaking volume dilution for technical efficiency causes management to overlook the separate savings available from lowering the 1,000 kWh base load or the 2.00 kWh variable draw.[S43][S44]

¶ 04 · 3 sources

moving from 500 to 1,000 good garments per shift cuts total energy per garment…S44

Exhibit 64

S44S16S43

13.14 Linear regression separates utilisation gains from technical efficiency

13.14

To prevent denominator confusion in monthly reviews, GFT applies the linear energy-volume model from UNIDO practice:[S44]

¶ 05 · 1 source

S44

$$E_{\text{total}} = E_{\text{base}} + b \cdot G_{\text{std}}$$

¶ 06

Here, $E_{\text{total}}$ is metered energy consumption, $E_{\text{base}}$ is fixed non-process base load, $b$ is marginal energy per unit, and $G_{\text{std}}$ is good output normalised by style work content (earned standard hours).[S13][S16][S44] Tracking $E_{\text{base}}$, $b$ and $G_{\text{std}}$ separately assigns ownership to production supervision (diluting $E_{\text{base}}$ over higher daytime $G_{\text{std}}$), facilities maintenance (cutting $E_{\text{base}}$ by isolating idle compressor loops, zoning lighting and insulating steam headers) and process engineering (reducing $b$ through servo drives, condensate recovery and fewer rework passes).[S02][S04][S16][S43][S44]

¶ 07 · 6 sources

S13S16S44S02S04S43

13.152 min · 1 sub-steps · read with a related exhibit

Efficiency should precede additional energy capacity

13.16 Oversizing renewable and backup systems locks in operational waste

Where grid outages disrupt production and medium-voltage tariffs are rising, sponsors look to solar photovoltaics, battery storage and backup generators to protect availability.[S34][S35][S1302] However, sizing a solar array, battery bank or generator directly from the utility bills of an unoptimised plant is a costly error. UNIDO's industrial decarbonisation case study of Lotus Garments in Egypt states the rule directly: a plant must optimise its energy-management system through efficiency measures before investing in renewable applications.[S43]

¶ 01 · 4 sources

S34S35S1302S43

Every kilowatt of avoidable base load (unsealed air mains, uninsulated steam pipes, or twenty lines running at 35 per cent efficiency when twelve balanced lines at 60 per cent could deliver the same good output) inflates peak demand and daily consumption.[S15][S43][S44] Sizing a solar-plus-storage microgrid before closing those operational and thermal losses forces the investor to buy solar panels, inverters and batteries simply to power air leaks, idle motors and rework loops.[S04][S43][S44] Closing production and energy losses first reshapes infrastructure sizing in four ways:

¶ 02 · 4 sources

or twenty lines running at 35 per cent efficiency when twelve balanced lines at…S15, S43, S44

S15S43S44S04

  1. Lower peak demand reduces inverter and generator ratings: Balancing lines and staggering start-ups trims peak kW draw, shrinking generator and inverter kVA ratings and monthly subscribed demand.[S34][S43]
  2. Higher daytime throughput aligns load with solar generation: Closing OEE losses during the eight-hour daytime shift avoids evening overtime, allowing rooftop solar photovoltaics to serve the load directly without cycling batteries or buying peak-tariff grid power.[R16][S04][S34][S41][S43]
  3. Reduced base load shrinks battery autonomy requirements: Isolating non-essential base loads and consolidating work onto balanced lines reduces the battery storage needed to ride through a two-hour outage.[S30][S35][S44]
  4. First-pass quality eliminates double-energy garments: Raising first-pass yield removes the extra mechanical and thermal energy consumed by unpicking, re-sewing and re-pressing defective pieces.[S04][S09][S12][S43]
  5. GFT note: Sequence operational loss closure before sizing power hardware

    In GFT's Cameroon textile programme, the unit-economics, footprint and solar-storage workflows are linked by a mandatory stage gate. Project teams should not freeze capital specifications for rooftop solar, battery storage or backup generators from raw nameplate machine lists or unadjusted baseline bills.[S43][S44] First, establish the balanced line count required to meet good demand at realistic efficiency; second, separate essential sewing and cutting loads from reducible base loads; third, execute housekeeping and maintenance fixes on compressed air, lighting and steam; and only then size the hybrid power system around the verified daytime load profile.[S02][S35][S43][S44]

13.173 min · 3 sub-steps · 1 exhibit

Investment cases require measured baselines and explicit advice limits

Exhibit 658 paragraphs step it

Exhibit 65RegisterillustrativeA utilisation investment case needs six reconciled benefits
Benefit or cost stream
1. Incremental good output
Physical measure
First-pass and approved garments per shift at constraint
Financial conversion basis
Contribution margin or fixed-cost absorption per good unit
Double-count guard
Count only if backed by confirmed buyer orders and material supply

Read-outBenefit or cost stream: 1. Incremental good output. Physical measure: First-pass and approved garments per shift at constraint. Financial conversion basis: Contribution margin or fixed-cost absorption per good unit. Double-count guard: Count only if backed by confirmed buyer orders and material supply

Open the full register (6 rows)
1. Incremental good outputFirst-pass and approved garments per shift at constraintContribution margin or fixed-cost absorption per good unitCount only if backed by confirmed buyer orders and material supply
2. Direct labour efficiencyAttended labour minutes per earned standard minute (SMV)Verified CPM and avoided overtime premium (1.2x base)Do not count both headcount reduction and volume expansion from same hours
3. Rework and scrap reductionDefects per hundred units and unpicking minutes loggedSaved repair labour, thread, trim and avoided seconds discountExclude repair minutes already credited in net line efficiency
4. Energy and demand savingsIntercept base load (kWh), slope (kWh/SMV) and peak kWARSEL MT fixed kW charge, variable kWh rate and diesel avoidedSeparate volume-driven base-load dilution from technical efficiency
5. Working-capital releaseWIP pieces and throughput time across stable line boundaryCost of capital on cut-fabric inventory and reduced floor spaceOne-off cash release on inventory reduction, not a recurring shift saving
6. Intervention and operating costHardware, software, training hours, spares and technician timeFull capital outlay plus recurring licence, calibration and wage upliftInclude ramp dip during changeover and ongoing supervisor time
Method and source

Illustrative GFT investment-evaluation table showing the six cost and benefit streams that must be reconciled from a measured pilot before capital release. Methodological boundaries follow S08 (maintenance capacity recovery), S09 (apparel OEE monitoring), S34 (two-part medium-voltage tariff) and S44 (base-load separation).

Unit: Verification rules and cost boundaries. Status: illustrative. Sources: S08, S09, S34, S44. Illustrative figures are teaching examples, not measured factory results.

13.17 · Introduction · paragraph 1 of 8

13.18 Case studies prove mechanisms rather than transferable percentage targets

Technology vendors and consultants often insert published case-study gains directly into five-year cash-flow projections. Empirical studies cited in this paper confirm that operational interventions work: Company X raised apparel OEE from 42.91 to 52.27 per cent using monitoring devices and digital balancing; process redesign raised output from 1,300 to 2,000 leggings per day with the same resources; the ILO Factory Improvement Toolset raised sewing-room line achievement by 9.49 per cent while cutting WIP and defects by 22 per cent; kanban and single-piece flow in an Ethiopian factory cut WIP by 48.5 per cent and throughput time by 80.3 per cent; Edget Garment raised balance efficiency from 24 to 75 per cent and daily output from 50 to 120 pieces; and TPM in the NIST MEP case raised OEE from 39 to 45 per cent while avoiding US$250,000 in equipment purchases.[S08][S09][S10][S12][S31][S37]

Each result is a sourced observation of a mechanism, not a transferable financial guarantee for a line in Douala, Garoua or Dibamba.[R10][R12][S03] Published OEE figures do not share a uniform definition across studies, and percentage gains depend on the starting baseline: a plant at 24 per cent balance efficiency has far more recoverable capacity than a line already at 58 per cent efficiency facing fabric or grid constraints.[S03][S35][S37]

13.19 Six benefit streams must reconcile without double counting

To build an auditable business case, GFT requires sponsors to reconcile six physical and financial streams in a single evaluation table (Exhibit 65). Counting the wage savings of headcount reduction while simultaneously counting the margin of extra garments produced by those same operators double-counts recovered labour minutes.[S13][S1301] Similarly, counting volume-driven kWh-per-garment reductions as technical energy savings while already crediting fixed-overhead absorption on higher volume double-counts base-load dilution.[S34][S44]

Inspecting Exhibit 65 shows why disciplined factories stage capital commitments. Stream 1 (incremental good output) dominates when the factory is capacity-constrained and turning away profitable orders, or when higher throughput lets the plant consolidate two underutilised shifts into one well-utilised daytime shift.[R12][S04] When order volume is fixed by buyer demand, the benefit must instead be captured in Stream 2 (avoided overtime premiums), Stream 3 (lower scrap and rework), Stream 4 (shorter operating hours reducing base load) and Stream 5 (lower WIP working capital), net of Stream 6 intervention costs.[R16][S02][S08][S12][S31][S40][S44]

13.20 Sensitivity bands and staged gates protect capital allocation

Because greenfield and turnaround lines face uncertainty in learning speed, turnover, grid stability and order mix, GFT tests every utilisation investment across three scenarios before releasing funds:[S18][S35][S39]

  • Conservative downside case: assumes operator learning progresses at half the rate of published studies, first-year turnover requires continuous replacement training, grid outages match worst-quarter frequency and style changes shorten runs.[S18][S35][S39]
  • Measured pilot baseline case: uses the actual availability, performance, quality, SMV efficiency and kWh-per-standard-hour coefficients recorded during a controlled four-to-eight-week trial on a single pilot line.[S04][S09][S13][S44]
  • Target stabilised case: reflects the unit cost achievable once standard work, hourly balancing, autonomous maintenance and pull release have run across multiple style changeovers without regression in first-pass yield or attendance.[S12][S24][S26][S40]

By binding financial projections to physical loss closure, the sponsor closes the loop between the sewing floor and the boardroom. Only when operational discipline reduces lost capacity at the constraint, lifts earned standard minutes per attended hour, eliminates rework loops, shrinks waiting inventory and trims wasted base-load kilowatts does unit cost genuinely fall.[S04][S13][S30][S44] Chapter 14 now translates this technical and economic discipline into a four-phase implementation roadmap, defining the sequence of gates, owners and scorecard measures needed to build a learning garment line from the first shift.

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Every knot is a source this chapter cites; select one to read its record, or filter the register by grade. Publication dates and inherited-source limits stay explicit. Read the paper's full evidence summary.

46 sources · 299 citation marks on this pageMost cited: S44, 26 times

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R06 · Grade C · inherited record

Cameroon Trade Hub

Inherited evidence R06

About 95 percent of cotton fibre exported raw against 5 percent processed locally; industrialisation target of 50 percent local processing.

Publication date unrecorded. Inherited source-text record. The original publication has not been independently reopened for this web edition.

Chapter source notes

S04 MDPI, Applied Sciences. 2020-09-17.

S13 International Finance Corporation and International Labour Organization, Better Work. 2025.

S30 Lean Enterprise Institute. 2006-09-08.

S41 Better Work, International Labour Organization and International Finance Corporation. 2011.

S44 United Nations Industrial Development Organization. 2015.

R06 Cameroon Trade Hub. Publication date unrecorded; inherited source-text check.

R12 Business in Cameroon. Publication date unrecorded; inherited source-text check.

S01 International Organization for Standardization. 2014.

S34 Agence de Regulation du Secteur de l'Electricite, Republic of Cameroon. 2022-12-12.

S02 National Institute of Standards and Technology. 2018.

R07 Ecofin Agency. Publication date unrecorded; inherited source-text check.

R09 Ecofin Agency. Publication date unrecorded; inherited source-text check.

R10 Ecofin Agency. Publication date unrecorded; inherited source-text check.

R13 Business in Cameroon; MMI News. Publication date unrecorded; inherited source-text check.

S09 Wiley, Engineering Reports. 2025-07-26.

S20 MDPI, Machines. 2023-11-02.

S22 Massachusetts Institute of Technology, MIT OpenCourseWare. 2012.

S31 Journal of Textile and Apparel, Technology and Management, North Carolina State University. 2022-03-03.

S32 National Bureau of Economic Research. 2007.

R16 WageIndicator. Publication date unrecorded; inherited source-text check.

S1301 Online Clothing Study. 2025-05-11.

S12 International Labour Organization. 2023.

S35 International Finance Corporation, World Bank Group. 2022.

S23 Massachusetts Institute of Technology, MIT OpenCourseWare. 2004.

S24 Lean Enterprise Institute. 2020-07-02.

S28 Lean Enterprise Institute. 2016-01-13.

R14 WageIndicator. Publication date unrecorded; inherited source-text check.

R15 wage.is. Publication date unrecorded; inherited source-text check.

R17 just-style. Publication date unrecorded; inherited source-text check.

R32 Wise; XE. Publication date unrecorded; inherited source-text check.

S15 Wiley, Engineering Reports. 2020-04-03.

S40 Better Work, International Labour Organization and International Finance Corporation. 2023.

S33 Republic of Cameroon, English text mirrored by Ministry of Commerce of China. 1992-08-14.

S18 MDPI, Applied Sciences. 2021-11-23.

S37 International Labour Organization, SCORE and SIRAYE. 2022-06-01.

S39 United Nations University World Institute for Development Economics Research. 2021.

S06 IEEE, IEEE Transactions on Semiconductor Manufacturing. 2005-02-28.

S08 NIST Manufacturing Extension Partnership. 2022-10-04.

S16 MDPI, Energies. 2019-07-19.

S43 UNIDO Industrial Energy Accelerator. 2020.

S1302 Business in Cameroon. 2024-02-07.

S36 World Bank, Development Research Group. 2023.

S19 MDPI, Applied Sciences. 2020-04-29.

S10 MDPI, Engineering Proceedings. 2024-10-21.

S03 National Institute of Standards and Technology. 2020.

S26 Lean Enterprise Institute. 2020-07-02.

Keep the thread · chapter 13 of 14

Chapter 14 picks up the thread.

Move the shuttle along the rack to preview any chapter: its sections, exhibits and reading time. Draft web edition. This research is not investment, legal or tax advice; illustrative models are not measured factory results.

The paper's rack · 14 boltsBolt length: reading time

14Part IV: Turn measurement into sustained performance

A gated roadmap turns the first line into a learning system

Release the next commitment only when a measured trial shows that good throughput, safe work and controlled flow survive ordinary operating conditions.

  • 14.1First, freeze definitions and capture the baseline
  • 14.2Second, stabilise standard work and the constraint
  • 14.3Third, reduce batch and changeover losses together
  • 14.4Fourth, build the people and power envelope
Reading time
24 min
Exhibits
5
Sections
7
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