Increasing efficiency in the Chinese supply chain for CSR gains

The TüV Rheinland Group (Shenzhen) and CSR Asia (Hong Kong) with the support of InWEnt Capacity Building International have developed a multi-supplier training program for the apparel sector in China that links productivity and quality with CSR. Called FIT5 (Factory Improvement Training: an integrated 5 modules approach), the program is subtitled “Increasing efficiency in the Chinese supply chain for CSR gains”. The integrate modules are:

1. Communication;
2. Human resource management;
3. Lean manufacturing;
4. Occupational health and safety;
5. Social accountability.

The initial program starts with a group of six factories for a six-month training and onsite consulting curriculum designed to integrate efficiency and good workplace practices. Training sessions for each module begin with group sessions (bringing together management from all factories), followed by factory visits and onsite consulting by specialists in each area that are designed to deal with the specific needs of individual management teams. FIT5 has been initially designed for the apparel sector in southern China, but will be rolled out in other sectors and countries in Asia as applicable. The objective of the program, as shown in the figure above, is to deliver five modules in a continuous and integrated learning program that brings about behavioural change.

Improved productivity – Better CSR, ensuring sustainable development

Dealing with CSR issues in the absence of strong management systems, or developing powerful management systems without integrating CSR, has not resulted in sustainable change with regards to compliance to codes of conduct or other standards or laws applicable to the supply chain. This program integrates management training and CSR to unlock productive potential and improve compliance.

An ongoing learning system that locks CSR and greater productive efficiency together and results in sustainable behavioural change

The Course

Each factory receives a total of 28 training days (16 days in group – or public – seminars and 12 days of in-factory training). Around 30 managers will be trained in direct sessions. Many more will be trained during in-factory consultations and training. Consultation onsite involves the development of action plans designed to remediate key problems identified during pre-training assessment and during factory visits and training. This training program is not simply aimed at correcting problems, but affecting behavioural changes that are long lasting and bring about sustainable change. It is essential that factories and managers participating in the program are committed to implementing production changes and are willing to work with the training team to implement those changes.

Continuous and sustainable improvement

Module 1 changes the way managers communicate with each other, their clients and employees, and forms the foundation for all other modules. Lessons from Module 2 establish a coherent HRM system, reinforce learning from Module 1, and lay the groundwork for Module 3 on Lean Manufacturing. Lessons and consulting on Lean Manufacturing also strengthen learning outcomes from Module 2, and build the foundations for Module 4 on Social Accountability. Module 4 (SA) aids to reinforce the lessons from the previous module, and provides the basis for the final module on OHS. Factories learn to assess their own systems and enable continuous improvement for a sustainable model of development.

The course begins with a pre-training assessment, which identifies individual factory issues and act as a benchmark for a post-training assessment by which to evaluate program outcomes. Each module consists of seminars of varying duration, followed by factory visits to ensure that lessons are acted upon correctly. Expert consultants will review self-assessments completed by the factory and based on action plans for change to be completed both over the following month of the specific module and during the course of the program.

Each module will begin with a public seminar followed by in-factory assessment visits and consulting. Prior to the start of each module, each factory receives a report outlining the status of improvements and to act as discussion points for future suggestions.

It is expected that each factory will assign a manager (FIT5 Champion) to oversee and coordinate the program. This person will remain constant throughout the entire process and be the contact point in the factory.

The training program is highly interactive and will be overseen by experts from the TüV Rheinland Group (Shenzhen) and CSR Asia (Hong Kong). Both companies will draw on expert external consultants for various modules, and it is expected that participants will network with each other to discuss critical elements of implementation in their respective factories. We expect graduate managers to form an “alumni association” to further enhance the lessons learnt in the program.