The manufacturing face of textile industry in the developed countries has changed over the years. With Set ups for economies of scale, high production rates, domestic manufacturing stagnant and decreasing, number of SKU increasing, lower batch sizes and Faster rate of new style introductions, it has become very difficult for the manufacturers to compete with low cost producers. The manufacturers can only compete if they are productive and keep improving their productivity to reduce costs. Analysis showed that while showing higher productivity, the system of measurement is flawed. Some of the factors such as medical costs, picks per shed that have not been considered in current productivity measures should be included to improve the accuracy of the productivity measures. This work shows the importance of accurate measurement of productivty and how manufacturers can improve processes and increase profits. This research work will be of immense relevance for all organizations related to manufacturing and not confined to textiles industry. This can also be used by students researching in the manufacturing field as a foundation to enhance and support their respective research works.