## What does Right First Time (RFT) Mean?

Right First Time is lean tools that mean doing the thing right in the first time which can remove eliminate or repair and defects producing in garments manufacturing. RFT percent is one of the key performance indicator tools in Garments quality control. In this article, we will discuss What is RFT, RFT Factors and Calculation in Apparel Industry.

## Advantages/Benefits/Importance of Producing Right the First time

1. Reduce cost and penalty of quality failure
2. Improve quality and productivity
3. Remove re-work and repairing
4. Save time and energy
5. Save defects rectification cost
6. Improve work accuracy

## RFT calculation for Cutting, sewing, finishing, and Quality Control

Right First Time = (Number of passed goods or Lot / Number of total produced Garments or Lot) x 100

For example, If 200 pcs Garments is produced in the sewing section, found 13 pcs defect by QC then first pass quantity is =(200-13)= 187 pcs.

So, Sewing RFT will be = (187/200*100) % = 93.5%

 Date RFT Defect % 4/11/2017 95.67% 4.33% 5/11/2017 96.54% 3.46% 6/11/2017 96.57% 3.43% 7/11/2017 95.80% 4.20% 8/11/2017 96.20% 3.80% 9/11/2017 96.74% 3.26%

## Actual and Target RFT

 Date Actual RFT Target RFT Total Check Quantity 1-Jul 93.40% 96% 2500 2-Jul 93.50% 96% 2600 3-Jul 93.10% 96% 2400 4-Jul 94.20% 96% 3000 5-Jul 94.60% 96% 3500 6-Jul 93.50% 96% 2500

## RFT Key Factor Areas of Garments Manufacturing

There may have others area you need to count RFT, I am giving here what I know. Surely RFT is a performance measuring tool of quality control.

1. Cutting panels quality
2. Sewing output garments quality
3. Finishing packed garments quality
4. Final Audit RFT.

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

## Kanban Board in Garments Manufacturing Production Floor

What is Kanban? Kanban is a visual card or billboard; Japanese word which meaning Cards or board, a tool of lean manufacturing for visualization entire production teamwork to control production focusing on creating a production system more effective and efficient, focusing mainly in the production and logistics activities. Kanban is a visual system as ‘Signal card’ indicate what to do, items will put when needed, Kanban cards order necessary task, update with time and surely reduce wastage. In this article, you will have an idea of how kanban board in garments manufacturing production floor is used.

## Types of Kanban System

Generally, two types of Kanbans or Kanban Cards used in the apparel industry:

### Production Kanban

Production Kanban is the first step of Kanban implementation, production Kanban takes the place of standard production orders in material requirements planning (MRP) push.

### Transportation Kanban

Transportation Kanban system is very important that carried on the trolley, containers that are associated with the transportation to move through the loop again.

## Importance of Implementation Kanban Board in Apparel Industry

1. Reduce idle time in a production process.
2. Increase productivity, more effective and efficient production
3. Visualize work and optimize the flow of the work
4. Reduce WIP (Work in Process)
5. Improve workflow
6. Avoidance of over-production and limitation of stocks
7. Higher availability of materials
8. Reduce inventories
9. Improve communication between management and operational staff

## Garments Kanban Board Information Includes

1. Backlog
2. To do list
3. Doing List/ work-in-process List
4. Work completed List
5. Plan list
6. Lot name
7. Process name

This content also have the answer of below points

• Kanban system in Apparel manufacturing
• Set up Kanban board in the production floor
• Kanban board in sewing floor

If you have any confusion then please let me know.

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

## Management Levels and Their Functions in Textile and Apparel Industry

If you are involved with the apparel industry or you have an interest in working in any levels of management, then you must know the Management Levels in Garments Factory. When you clearly know the Management Levels and Their Functions in Textile and Apparel industry, you can easily decide who is responsible for what. Generally, you can find three levels of management in the Apparel Industry.

1. Top level management in Apparel Industry
2. Middle-level management in Apparel Industry
3. Lower level management in Apparel Industry

## Top Level Management in Textile and Apparel Industry

Top level management has the Supreme authority and most of owning a share in a garments factory. Their designation titled as MD (Managing Director), Director, Chairman, CEO (Chief executive officer), COO (Chief operating officer). They are mainly responsible for setting company policy, objective, ethics and employee code of conduct of employees as their job role.

### Functions of Top Management in Garments Factory

1. To establish company policies, define goal and objectives
2. Set up company structure and form a company’s core ethics
4. Appointing mid-level management
5. Taking strategic decisions and giving direction in a critical situation
6. Take the decision about Staff increment, employee promotion
7. Follow up factory profits loss and giving decision any types of financial matters
8. Keeping good relation with the buyer (Customer)
9. Follow up factory productivity and quality performance

## Middle-Level Management in Textile and Apparel Industry

Middle-level management is called executory level subordinate of senior management but above of lower level management. Generally, in the Textile and Apparel industry, their job titles are Production manager (PM), Executive officer, Officer, Manager etc. Company performance depends on Middle-level management.

### Functions of Middle Management in Garments Factory

1. Lead low-level management /operational staff directly.
2. Manage both top and lower level management
3. Appoint low-level management employees
4. Set production target and taking responsibility of production
5. Implement company goals, strategy, and policies
6. Implement all types of customer requirement
7. Responsible for company profit, losses, and performance to the buyer
8. Working for top level and customer satisfaction
9. Contact with all level of management

## Lower Level Management in Textile and Apparel Industry

Lower level management is in supervisory level, supervise worker directly. They also are known as operational staff who report directly to the mid-level management. In textile and Apparels industry their job title as Supervisor, controller and in-charge. Low-level management directly connected with work and ultimately responsible for company performance.

### Functions of Lower Level Management in Textile and Apparels

1. Supervise all Worker directly
2. Fulfill the production target
4. Report Middle-level management
5. Solve any problem of worker

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

## Compliance Audit in Apparel Industry

A compliance audit is one kind of audit which is specially designed for auditing the compliance issues related with the apparel industry. Different regulatory authorities set different type of regulatory issues. And buyers of garments ask from the company whether they are following their required compliance or not. These issues are checked by the auditing process which is known as compliance audit. After a compliance audit, they provide/ issue certificate. From the Compliance Audit Checklist in Apparel Industry a garments makers will be able to know what are the things buyers may ask from the company.

## Compliance Audit Checklist in Apparel Industry

Compliance Audit is very important for garments manufacturing factory. To get an order from the buyer, your company must have to pass social Compliance Audit. Buyer may cancel the order if your company fails to pass the Compliance Audit. In this article, I am giving a checklist for any buyer Compliance audit preparation.

## Areas/Categories of Garments Compliance Audit

1. Licenses, permits and Facility Information
2. Child and under-aged worker
3. Forced labor and Discrimination
4. Freedom of Association and collective bargaining
5. Right of worker
6. Disciplinary Practice
7. Working Hours
8. Wages, Benefits & Compensation
9. Workplace Safety
10. Occupational Health & Welfare
11. Environment Management
12. Management Practice & Sub-contractor /supplier control
13. Training records
14. Company Policies

### Licenses, Permits and Facility Information

• Factory profile
• Architectural & Structural Drawing Approval
• Soil Test Report Approval
• Generator permission
• Electrical permission/ Sub-station permission
• TIN certificate
• Export registration certificate and Import registration certificate
• Export promotion bureau certificate
• Rent agreement

### Child and under-aged worker

• Child labor remediation process
• Recruitment policy
• Personal file
• Agreement with the service provider/sub-contract

### Forced labor and Discrimination

• Any harassment or discrimination issues
• Policy on a prohibition of forced labor
• Awareness/Training register
• Job responsibility of security guard

### Freedom of Association and Collective Bargaining

• Policy on freedom association
• Awareness/Training register
• Formation procedure of worker association/trade union
• Meeting minutes of worker participatory committee
• Register for complain /Suggestion
• Grievance handling procedure

### Right of Worker

• Personal file of worker
• Service book
• Employee ID card

### Disciplinary Practice

• Policy on disciplinary practice or rules
• Leave Record
• Orientation training on factory code of conduct & legal requirement
• All kind of policy
• Disciplinary action log & record
• Awareness/training register
• Final settlement
• Others legal facilities

### Working Hours

• Working hour Approval
• Working hour record for all section
• Overtime hour record
• Attendance Register
• Declared holiday list
• Manpower list

### Wages, Benefits & Compensation

• Wages/payroll sheet (last 1 year)
• Overtime wages sheet (last six months)
• Payslips (last 1 year)
• Wages Increment record
• Maternity Benefit register & Record
• Group Insurance with manpower update list
• Policy on wages, overtime, payment date, calculation method, leaves & holidays etc.

### Workplace Safety

• Sub-soil/Geological investigation report
• Building structural plan/approval
• 3rd party assessment report
• Firefighting training record
• Fire drill record
• Firefighting team
• Firefighting equipment list
• Fire safety plan
• Personal file of Fire Officer
• Electrical & Mechanical Equipment periodical checklist
• Competency certificate of Electrician
• Competency certificate of Boiler Operator
• Chemical Handling Training
• Health checkup record
• Chemical list
• Safely machine operating training register
• Needle stock register, Broken & Missing Register
• Sharp tool policy
• Emergency evacuation diagrams
• Emergency exit doors
• Building structure safety
• PPE (personal protective equipment) use
• Aisle or Stairway

### Occupational Health & Welfare

• Personal file of Welfare officer
• Drinking water test report
• First aid training & List of the first aider
• Medical agreement
• Competency certificate of Doctor
• Competency certificate of Nurse
• Personal file of care governance
• Childcare register
• Canteen committee

### Environment Management

• Environmental risk assessment as per section
• Emergency procedure to reduce risk
• Environmental clearance certificate
• Waste disposal agreement /procedure
• Wastewater test report in-house and outside
• Energy survey/ Assessment record

### Management Practice & Sub-contractor /Supplier Control

• Awareness training record for new & old workers
• Mid Management training record
• Internal Audit record
• Policy on Sub-contract control
• Sub-contract control procedure & record

### Training Records

• Emergency evacuation & fire drill record
• List of firefighters trained by fire service/BGMEA
• Disciplinary Rules communication
• First Aid training record
• Chemical Training record
• Machinery safety training record
• Health and safety training record
• Training on KIABI compliance

### Company Policies

• Child Labor Policy
• Child labor Remediation Policy
• Disciplinary Rules/Policy
• CSR Policy
• Anti-Corruption/Bribery policy
• Sub-contractor/Supplier Monitoring
• Grievance Procedure
• Environmental Policy
• Energy efficiency plan
• Environment emergency procedure
• Deduction for late/after lunch assentation

Compliance Audit Checklist in Apparel Industry

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

## Garments Washing Defects

Garments washing is the process to improve hand feel, appearance and better outlook of garments. That’s why washing plays a vital role in garments manufacturing. Because of various washing defect, rejection of garments increases. We need to reduce the rate of washing defects/faults at a minimum level. Rejection increases the cost of overall manufacturing. For this reason, reducing washing faults is the major concern for all apparel manufacturing industry. One major KPI points are to reduce washing rejection in the apparel industry. I made a list of all types of garments washing defects so that you may have a better idea of garments defects.

## List of Garments Washing Defects

1. Garments Discoloration
2. Poor Hand Sanding
6. Over Washing
7. Washing Damage
8. Washing Spot
9. High pH Level
10. Poor Grinding
11. Lycra Out
12. Poor Sand Blasting
13. High Abrasion Effect
14. Color Bleeding at Pocket Bag and Label
15. Washing Mark
16. Poor Hand Feel

## Washing Defect Description

### Garments Discoloration

If garments or any parts of garments discolored in washing it’s called discoloration. It is one of the common defect problems.

### Poor Hand Sanding

Because of improper hand sanding, more or less hand sanding than the actual requirement.

### Care Label Fading or Damage

Care label is an important part of garments. Sometimes label fades or damage in washing.

All garments have an original buyer required shade/color standard. If washing fails to meet shade standard then it is considered as off shade defect.

Various types of shade in a lot, when fabrication and washing are the same for a whole lot.

### Over Washing

There a certain limit of garments washing time and temperature. Crossing washing limit is considered as over washing and defects have arisen for this is known washing defects of over washing.

### Washing Damage

Garments damage in washing is called washing damage.

### Washing Spot

Creating a spot in washing is called washing spot defect.

### High pH Level

pH level crossed the level of higher pH limit. pH level is the most important factor in garments washing. For higher level, pH quality of garments may reduce.

### Poor Grinding

Because of improper grinding, more or less grinding than the requirement.

### Lycra Out

Damage Lycra or Lycra coming out in the washing of spandex fabric.

### Poor Sand Blasting

Improper sandblasting, more or less sandblasting than the requirement.

### High Abrasion Effect

Much abrasion effect than the requirement.

### Color Bleeding at Pocket Bag and Label

Generally, different fabric uses for a pocket bag and labels in any garments. Due to garments body, fabric and pocket bag fabric is different, color bleeding occurred frequently in pocket bag and label.

### Washing Mark

Garments marked in different washing stages, by the different washing machine, dryer. Long spot mark created in any process of washing is called washing mark defects.

### Poor hand Feel

If you find Rough hand feels after washing of garments then that considered as a poor hand feel defects of garments washing.

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

Bangladesh is now one of the developing countries in the world. Ready Made Garments (RMG) has a huge contribution to the economic growth of this country. The current condition of RMG – Ready Made Garments Export of Bangladesh seems good because there is a positive growth of export earnings. According to Export Promotion Bureau of Bangladesh (EPB), for the year 2017 to 2018 (July 2017 to April), Bangladesh Apparel Export is growing at the rate of 9% which seems a significant amount.

## RMG Export Growth Over the Year 2010 to 2018

Here you can see that the growth rate of RMG export is always fluctuating, the reason behind this is a change in market demand, increase in the cost of making, political condition, market competitiveness, and the exchange rate of USD to BDT.

 Year Total Export Million USD Growth 2010 14855 25% 2011 19214 29% 2012 19788 3% 2013 23501 19% 2014 24584 5% 2015 26603 8% 2016 28668 8% 2017 29213 2%

## Bangladesh RMG Growth for the Year 2017-2018

Ready Made Garments industry is growing at the rate of nine percent compared with the previous year. But in 2016-17 this growth rate was only 2%. So there is a significant positive change in the export.

 Total RMG Export Growth 2017-2018 Year Woven Knit Total Growth 2016-2017 10,785 10,144 20,929 – 2017-2018 11,513 11,321 22,834 9%

 Product Type Million USD Percent Woven 11,513 50.42% Knit 11,321 49.58% Total 22,834 100%

We mainly divide our apparel product into two broad categories. One is knit and other is woven.

### Monthly RMG Export Growth for the year 2017-2018

Although the growth of Ready Made Garments increased in every month there was an exception for the month of September 2017. It is not clear why suddenly growth rate reached to a negative figure.

## Main Apparel Export Items of Bangladesh for the Year 2016-2017

Bangladesh is mainly exporting Shirts, T-shirt, Trousers, Jackets Sweater among these Trousers and T-Shirt are exporting a huge amount, which is contributing at the rate of 29% and 28%. So these two products added significant value to the export earnings of Bangladesh.

 Item Million USD Percent Shirts 2108 10% Trousers 6027 29% Jackets 3547 17% T-Shirt 5862 28% Sweater 3362 16% Total 20905 100%

## Bangladesh RMG Export to the World 2017-2018

Most of our RMG is Exported to the European Union, where we export about 65% of our total export of apparel. Our second biggest client is the USA and the third one in Canada.

 Region Million USD Percent EU Countries 14735 65% USA 3929 17% Canada 713 3% Others 3457 15% Total 22834 100%

1. Germany
2. UK
3. Spain
4. France
5. Italy
6. Netherlands
7. Poland
8. Belgium
9. Denmark
10. Sweden

## Export of RMG by Bangladesh in European Union (EU)

Here look into this list that for the last 10 month EU countries is contributing 14734.69 million dollars. So there is no question of EU is the largest buyers of garments in our country.

 EU Countries Million USD Percent Germany 4205 28.537% U.K. 2847 19.322% Spain 1714 11.633% France 1328 9.012% Italy 1086 7.371% Netherlands 717 4.866% Poland 645 4.381% Belgium 534 3.626% Denmark 504 3.420% Sweden 395 2.679% The Czech Republic 352 2.386% Ireland 131 0.890% Slovakia 64 0.433% Portugal 50 0.338% Slovenia 44 0.298% Greece 40 0.270% Finland 22 0.152% Austria 22 0.147% Romania 13 0.086% Croatia 10 0.069% Malta 5 0.033% Bulgaria 2 0.013% Hungary 2 0.012% Lithuania 2 0.011% Cyprus 1 0.006% Estonia 1 0.006% Latvia 0.5 0.004% Total 14735 100%

RMG Export Market of Bangladesh Source: Export Promotion Bureau of Bangladesh, BGMEA

Written by

Md. Nahian Mahmud Shaikat

Email: [email protected]

## List of Machinery for Knit Composite Dyeing and Garments Factory

### Knit Composite Factory

Generally knit composite receive yarn from spinning. The process starts with yarn dyeing and finishes with fully knitted garments ready to send to the customer. Different stages and process involved in a knit composite factory. In this article, I made a List of Machinery for Knit Composite Dyeing and Garments Factory which will be required for doing the process of a composite factory. Machinery and Equipment may have different brands sourcing from the different country, its varies from factory to factory but working principle is more or less same.

## Process List of Knit Composite Factory

1. Yarn Dyeing
2. Knitting section
3. Knit fabrics dyeing
4. Dyeing finishing
5. Washing section
6. Allover print section
7. Screenprint
8. Embroidery section
9. Knit Garments Cutting section
10. Knit Garments sewing section
11. Knit Garments Finishing section
12. Factory utility section

## List of Machine for Yarn Dyeing

1. Yarn Dyeing
2. Hydro
3. Dryer
4. Random Winding
5. Soft Winding
7. Lab Dyeing
8. Lab Dryer
9. Lab Washing

### List of Machine for Knitting Section

1. Single Jersey
2. Rib / Interlock
3. Three Thread Fleece & Heavy Jersey
4. Auto Stripes
5. Flat Knit
6. Fabrics Inspection

## List of Machine in Knit Fabrics Dyeing

Only dyeing machine is used in this section

1. Dyeing

## List of Machine in Knit Fabric Dyeing Finishing

Not only in garments, finishing is mandatory after fabrics dyeing as well

1. Stenter
2. Compactor
3. Dryer
4. Active Stabilizing Dryer
5. Slitter
6. Squeezer
7. Fabric Turning
8. Seuding
9. Raising
10. Fabric Heat Setting
11. Enzyme Cleaning
12. Fabric Inspection

## List of Machine for Knit Washing Section

1. Washing M/c
2. Sample Washing
3. Deep Dyeing
4. Ozone
5. Jeanologia
6. Tonello
7. Tumbler Dryer
8. Oven Dryer
9. Hydro M/c

## List of Machine in Allover Print Section

1. Rotary Print Machine
2. Flat Bed Print
3. Loop Steamer
4. Wash Machine
5. Stenter Machine
6. Compactor Machine
7. Screen washing Dry Machine
8. Flat Screen Dryer Machine
9. Flat Screen Coating Machine
10. Screen Engraver
11. Screen Banding
12. Luscher Blu Diod Exposing
13. Fimafe Screen Preparation Units
14. Rotary Sample Paint Machine
15. Color Kitchen Units

## List of Machine in Screen Print

1. Light Expose
2. Grunig
3. Mixer Unit
4. Flash Cure
5. V-2002 EX
6. Easy
7. Manual
8. Curing Oven
9. Hit Press
10. Traveling Carriage
11. Stone

## List of Machine in Embroidery Section

1. Sun Star
2. Wuhan Golden
3. Wuhan Golden
4. Yueming
5. Hashima
6. Dichi
7. Laser Cutter

## List of Machine of Knit Garments Section

As like woven Garments, there cutting, sewing and finishing section in knit garments. Please see below section wise machine list.

## List of Machine in Knit Cutting Section

1. Cloth Cutter
2. Plotter
3. Auto Cutter
6. Plotter
7. Pattern Cutter

## List of Machine in Knit Sewing Section

1. Single Needle Lock Stitch machine
2. Two Needle Vertical
3. Two Needle Lock Stitch machine
4. Three thread Over Lock Machine
5. Four thread Over Lock Machine
6. Six thread Over Lock Machine
7. Flat Lock Cylinder Bed
9. Flat Lock Fabric Trimmer
10. Flat Lock Tape Binding
12. Flat Lock Top Feeder
13. Flat Bed Machine
14. Latch Attaching
15. Back Tape Attaching
16. Single Needle –Two Thread Overlock machine
17. Single Needle Chain stitch machine
18. Button Attaching
19. Cycle Sewing
20. Picoting & Fagoting
21. Buttonhole machine
22. Single Needle Zigzag
23. Bartack
24. Snap Button
25. Rib Cutter
26. 4 Needle Flat Seamer
27. VT Fit of the Arm (Flat-Lock)
28. 2 Needle Fit of the Arm
29. 3 Needle Fit of the Arms
30. Shirring & Smoking Machine
31. 11 Needle Plan Machine
32. 18 Needle Pre-Close Elastic Machine
33. Elastic Attaching Machine

## List of Machine in Knit Garments Finishing Section

1. Iron
2. Vacuum board
4. Needle defect machine
5. Strapping machine

## List of Machine in Garments Utility Section

1. Generator
2. Boiler
3. Air Compressor
4. Air Dryer
5. Water Pump

Written by

A.M. Amirul Islam (Washim)
Email: [email protected]

## Garments Cost of Making (CM)

One of the highest productive industry is a garments manufacturing industry where different types of products are manufactured. It is required to calculate Garments Cost of Making time to time because the main motive of garments manufacturer is to make a profit. After making the garments it is offered to the buyers. But the problem is, what should be the required price of that item and how to calculate the cost of the garment of making (CM). To solve this problem first, you need to know the cost of making of each garments and then add your markup price to set the selling price. Here the cost of making means the cost of manufacturing garments.

Monitoring garments making cost is necessary continuously, so that trends of the cost of making can visiable to the decision makers and they actually know whether garments making cost is increasing or decreasing. Based on your change in garments cost of making you may take decision accordingly.

Normally, CM cost or Cost of Making a garments indicates the sewing line cost of each garments. But you can also calculate your whole factory cost of making of each garments.

## Calculate Garments Cost of Making

Here in this article, we will show you two different ways of calculation Cost of Making (CM) of garments.

• Normal Method of Calculation of CM
• Effective Way of Calculation of CM

## Pre Requirement of Calculation of  Garments Cost of Making

Before you start your costing by using the normal way, you need to know the followings:

1. Total Cost (TC) = Fixed Cost (FC) + Variable Cost (VC)
2. Production Capacity of Your Machine (Hourly)
3. Total Effective Working Hours Per Day
4. Number of Days Operation in a Month

### Fixed Cost of Garments Making

Fixed Cost are those cost of garments manufacturing which are fixed in nature. With the increase of a number of unit of production, your per unit fixed cost will be reduced. Some example of fixed cost is; salaries and wages, interest expense of bank loan, a rental expense of your factory building, depreciation expense of your fixed assets, etc.

### Variable Cost of Garments Making

Variable cost is the cost which is change over an additional number of unit of production. But per unit variable cost is fixed. The variable expense of garments making is; Utility (Electricity cost, Water cost, steam cost, Air cost) Expenditures, transportation cost, repair, and maintenance expense, etc. Here the most crucial variable cost is utility cost. We need to carefully handle the utility section to minimize utility cost.

### Hourly Total Production Capacity of  Garments Machinery

To identify hourly total production capacity, you need to identify the total number of machine and capacity of each machine. After that, you need to multiply the hourly capacity with machine number.

### Daily Production Capacity of  Garments

For calculating the daily production of your garments, you need to multiply your hourly effective production capacity into working hours each day.

### Monthly Production Capacity of Garments

To calculate monthly production capacity you have to multiply your daily production capacity with the number of working days in a month.

## Costing of Utility of Garments

• Electricity: To get electricity cost you need to identify the total kW consumption of your factory and then multiply total KW with Price of per Kw electricity. Remember the cost of electricity is much higher in case of fuel generator and local REB compared with Gas Generator.
• Water: Water cost is the cost of collecting water and the filtering cost. Normally in textile and garments, De-Mineralized (DM) water is used.
• Steam: First identify the total consumption of steam per machine each hour and then multiply with the number of machines.
• Compressed Air: In case of air you have to identify the compressed air cost for per cubic meter then multiplies with the total consumption.

## The Formula of Calculating Garments Cost of Making Considering Whole Factory Cost

Monthly Garments Cost of Making (GCM) = (Monthly Total Cost of Garments Operation)/Monthly Total Output Produced by the Factory.

• Here Total Cost include both fixed and variable Cost of your garments factory for one month
• Monthly total Production is the output produced by the factory.

Example: Suppose Your Factory Costing Related Information are;

• Salary & Wages Expense Tk. 20,000,000
• Monthly Interest on Bank Loan Tk. 100,000
• Depreciation Expense is Tk. 50,000
• Rental Expense of Building is Tk. 200,000
• Transportation Cost is Tk. 150,000
• Repair & Maintenance Expense is Tk. 50,000
• Utility Expense is Tk 10,00,000 where Electricity Cost is Tk 500,000, Steam Tk. 200,000, Water Cost is Tk. 100,000, Chiller Cost Tk. 100,000, Compressed Air Cost is Tk. 100,000.
• Total Number of Machine is 150
• Hourly Production Capacity of Each Machine 30
• The total Working hour is 8 hours per day
• The number of working days in a month is 26 Days.

Total Cost = 20,000,000 + 100,000 + 50,000 + 200,000 + 150,000 + 50,000 +1,000,000 = 21,550,000

Total Production = 150 * 30 * 8 * 26 = 936,000

Cost of Garments Making Per Piece of Garments = (21,550,000/936,000) = Tk. 23.02 (Piece)

### Effective Way of Calculation of Garments Cost of Making (CM)

• Total Number of Machine = 180 Unit
• Number of Workers Required = 200 Person
• Total Working Hours a Day = 8 HOurs
• Number of Working Days for a Given Month = 26 Days
• Workers Efficiency = 65%
• SMV of Trouser = 35 Minute
• Available Minute = (200 Workers x 8 Hours x 26 Days x 60 Minute) X 65%
• Available Minute = 16,22,400 Minutes in a Month

#### Fixed Cost of Garments Factory

• Salary & Wages Expense Tk. 40,00,000 Monthly
• Interest on Bank Loan Tk. 100,000 Monthly
• Depreciation Expense is Tk. 50,000 Monthly
• Rental Expense of Building is Tk. 200,000 Monthly
• Transportation Cost is Tk. 150,000 Monthly
• Repair & Maintenance Expense is Tk. 50,000 Monthly
• Utility Expense is Tk 10,00,000 Monthly

#### Calculation of Cost Per Minute of Garments Factory

• Salary = (40,00,000/16,22,400) = 2.47 Taka/Minute
• Interest = (100,000/16,22,400) = 0.06 Taka/Minute
• Depreciation = (50,000/16,22,400) = 0.03 Taka/Minute
• Rental Expense = (2,00,000/16,22,400) = 0.12 Taka/Minute
• Transportation = (150,000/16,22,400) = 0.09 Taka/Minute
• Repair & Maintenance = (50,000/16,22,400) = 0.03 Taka/Minute
• Utility Expense = (10,00,000/16,22,400) = 0.62 Taka/Minute
• Total Cost Per Minute = 3.42 Taka/Minute

So, the Cost of Making (CM) of Trouser = 35 Minute x 3.42 Cost Per Minute = 119.7 Taka

#### Minute Value or Cost Per Minute of Sewing Line of Garments

For calculation of garments sewing line cost per minute you can use the number of operators and helpers and determine the total available minutes. And then, divide the total wages and salary expenses of operators and works with the available minute.

Suppose Your Sewing Section has 30 machine and for this machine 30 operators and 5 helpers are working.

• Total Salary Expense = ( 30 Operators * Average Monthly Salary) + (5 Helpers * Average Monthly Salary)
• Salary and Wages Expense = (30*10000 Tk.) + (5 * 8000 Tk.) = 340000 Tk/Month.
• Available Minute Per Month = ((30 operators+5 helpers)* (8 hours *60 minutes)) * 26 days = 436800 Minutes in a Month

CM of Garments = (340000/436800) = .78 Tk./Minute

If a garments need 45 minutes to make then the total cost of making cost of that particular garments will be = (.78 TK * 45 minute) = 35.1 Tk./Per Piece

*(Calculation based on Assumption)

Here instead of Taka you can use any other currency as required.

After reading this hopefully you understand how to calculate garments cost of making. If you have any confusion then please let me know, I will try to clarify further.

Note: All these costing information is arbitrarily taken, so these values are not actual costing value.

Written by

Md. Nahian Mahmud Shaikat

## Calculation of Earnings and Loss for Garments Industry

Calculation of earnings and loss for garments industry is required to monitor whether factory operation is generation expected revenue or not. Based on your calculation of earnings and loss you can set production target to meet your expected level of profit for your business.

As sewing is one of the main operation of garments, you can take sewing as a factor and calculate earnings accordingly. You can use same formula for calculating profit or loss of your industry after shipment of your final product.

Let’s see the calculation at a glance.

Suppose, Your Factory’s last 3 Month Expenditure= 1466400\$

So, Per month Expenditure = (1466400\$/3) = 488800\$

So, Daily Expenditure = (488800\$/26) = 18800\$ [if fty run 26 days per month]

Your fty produced = 8800 Units per day

Per GMTS CM= 2.20\$ (It’s vary style to style, you need to calculate style wise from buyer given CM)

Then, Daily Earnings = (8800 X2.20\$) \$ = 19360\$

So, Your Daily Earnings = (19360\$-18800\$) = 560\$

## Template for Calculating Earnings and Loss for Garments Industry

I have developed an excel template to calculate earnings and loss for your convenience. You can use this template for any industry; specially for your daily garments production. I hope this will give you well understanding.  You can download this template for free, just click on daily production & CM earnings report.

### Daily Production & CM Earning Report

This template includes:

1. Production report
2. Production chart
3. Earning calculation and report
4. Per unit CM (Style wise)

This template can be very helpful for any Garments professional. Based on the output of this template you can prepare your report maintaining professionalism.

You will get not only earnings and loss report but also production report. In this way it will be helpful for everybody to see actual status of a factory. If you face any problem of understanding then please do not hesitate to contact with me.

Written by

A.M. Amirul Islam (Washim)

Phone:+8801929643301
E-mail: [email protected]

## Quality Improvement Techniques in Apparel Industry or Garments Industry

As quality is one of the key success factors, managers always try to devote their effort for improving the quality of garments. In this article we will show you how quality improvement techniques in apparel industry can be ensured.  Not only productivity but also quality improvement getting most importance in apparel industry. Without ensuring quality you should not make shipment of your goods to the customer’s destination. We have seen that sometimes our valuable customers reject the goods or hang the payment because of low quality goods which is not in accordance with the specification. Although there is continuous efforts is given but there may have some problem which is not correctable/repairable. So it would be a right decision to take all precautionary measures to avoid unexpected fault of your garments and ensure right quality.

## Garments Quality depends on these Quality Factors

If you want to ensure quality and continuous improvement then you have to avoid the following defects of the garments.

1. Fabric defect
2. Trims and accessories defect
3. Cutting defect
4. Construction and placement Defect
5. Seam and Stitching Defect
6. Finishing defect
7. Packing defect

Let’s have a short discussion about these quality factors/matters

### Fabric Defect

Fabric cost is at least 60% out of total garment Cost. Apparel Industry inspect fabric roll for quality matter. If your fabric roll fail in inspection you should return to fabric supplier and replace with the quality one. If your finished garment contains fabric defect, you are the one who will be responsible for that not fabric supplier.

### Trims and Accessories Defect

Apparel industry should check all trims and accessories after in housed. If they found any problem, they should return to suppliers for replacement.

### Cutting Defect

As per Running shade and Selvage report, marker will make for bulk cutting. Otherwise garments will contain part shading. All cut components should match with marker.

### Construction and Placement Defect

You will sewing garments as per buyer’s approved sample for bulk production. All stitching of every process should same as sample. Different parts placement should accurate. Up-down is not acceptable.

### Seam and Stitching Defect

All sewing machine should fit for sewing with accurate tension. Otherwise there are possibilities of skip stitches, puckering. Garments should be clear of some other stitching defects like: broken stitch, over stitch, down stitch, jam stitch, and joint stitch.

### Finishing Defect

After pressing Garments there should be no crease mark, puckering. Keeping good appearance is also necessary for garments.

### Packing Defect

There are zero tolerance any types of packing defect. Incorrect size, incorrect PO, incorrect quantity, folding defect include in packing defect. You should be careful about these defects.

### Inspection

You should check your quality of 100% garments in finishing. If repairable of defective garments, you should repair it quickly as you can. Before final inspection, you can do pre-final or shadow inspection to see quality of your packed garments. If you found lots of defect in packed garments, you should re-check all garments and take effective measures to resolve the quality problem of garments.

Finally quality improvement is a continuous process that’s why you have to give your effort continuously and this will be possible through proper monitoring every steps of garments manufacturing. If you can ensure monitoring and take immediate action to resolve the defects then obviously you product quality will be improved.

Written by

A.M. Amirul Islam (Washim)