Calculate Garments Cost of Making

One of the highest manufacturing industry is garments manufacturing industry where different types of garments are manufactured. Calculate Garments cost of making time to time is the right decision because the main motive of garments manufacturer is to make a profit where they manufacture garments and then sell it. But the problem is, what should be the required price of that item and how to calculate garments cost of making. To solve this problem first, you have to know the cost of garments making then add your markup price to set the selling price. Here cost of making means cost of manufacturing garments. Monitoring garments making cost is necessary so that trends of the cost of making can be identified and you can actually know whether your garments making cost is increasing or decreasing. Based on your change in garments cost of making you may take decision accordingly.

Calculate Garments Cost of Making

How to Calculate Garments Cost of Making

Pre Requirement of Calculation of  Garments Cost of Making

Before you start your costing 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 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 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 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 Gus 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 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

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 100,000, 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)

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.

Costing of Polo Shirt

Costing of Polo Shirt

Description of product

Here I am going to calculate price of a polo shirt of having following configuration:

100% cotton pique polo-shirt containing two buttons in the front placket having side band with flat-knit collar and cuff and Small embroidery on left chest.

costing of polo shirt

Polo Shirt

For calculating price of polo-shirt at first we have to calculate the fabric consumption from the size spec sheet given by buyer.

If you want to know how to calculate the consumption of polo-shirt then you can check my other article “Fabric consumption of polo-shirt”.

Let consider,

Fabric consumption per dozen : 3.80 kg
So, Yarn consumption will be : 3.80 + (3.8×8%)
  = 4.104 kg/dz

So, Fabric costing

So, costing for yarn per dozen = US$3.90 × 4.104 kg/dz(price of yarn = US$3.90/kg)
= US$ 16 /dz
Knitting charge (pique) = US$ 0.15 × 4.104/dz(Knitting charge = US$ 0.15/kg)
= US$ 0.62/dz
Dyeing Charge = US$ 1.3 × 4.104/dz(Dyeing Charge = US$ 1.3/kg)
= US$ 5.34/dz
So, Finished fabric cost per dz = (16+0.62+5.34) US$/dz
= 21.96 US$/dz

For Collar & Cuff Costing

Yarn cost = 0.70 × 3.90 US$/dz
= 2.73 US$/dz
Knitting Charge = 0.07 × 12
=0.84 US$/dz
Dyeing Charge = 1.3 × 0.70
= 0.91 US$/dz
So, Finished collar & Cuff cost = (2.73+0.84+0.91)US$
= 4.48 US$/dz

Now, production cost per dz

For Fabric = 21.96 US$
For Collar & Cuff = 4.48 US$
Cost Management (CM) = 6 US$
Accessories cost = 3 US$
So, Total Production cost   = 34.44 US$/dz

Finally FOB price

Total production cost = 34.44 US$/dz
Commercial Cost (3% of total production cost) = 0.88 US$/dz (without CM)
Profit ( 20% of CM) = 1.2 US$/dz
Total FOB Price Per Dz = 36.52 US$/dz
So, FOB price per piece      = 3.04 US$/pc

Final quoted price for Buyer = 3.1 US$ / pc (FOB)

 

By

Engineer Sheikh Nurja

B.Sc engineer of textile

Merchandiser at buying house

If you like this article please do not forget to share on facebook and put your valuable comments.

How to Measure Fabric Weight of Big Quantity

How to Measure Fabric weight of Big quantity

To know the fabric’s weight

For measuring fabric weight in large quantity we can follow the following way which now I am going to present for you. Wish it will be helpful for you who are related to textile. After reading this article you will have a proper idea of how to measure fabric weight of big quantity.

how to measure fabric weight of big quantity

Huge quantity contained different fabric.

Usually, we measure GSM (Gram per square meter) by GSM cutter.

  • We can get GSM by fabrics construction also. Let’s try to get GSM of the following construction:

(20 × 16/128 × 60) twill.

We know,

GSM = {(EPI/Warp count) + (PPI/ Weft count)} × 25.64
Here ,    EPI = 128
PPI = 60
Warp count = 20
Weft count = 16

So GSM will be = {(128/20) + (60/ 16)} × 25.64

=260 GSM

  • Then you can get GLM (Grams per linear meter) via GSM.
GLM = ( GSM × fabric width)/39.37
When

 

GSM = 260
Width = 58
GLM = (260 × 58)/39.37
=383

So 500-meter fabrics total weight = GLM × Fabric quantity.

= (383 × 500 m) (here fabric quantity = 500m)
=191500 grams
=191500/1000 Kg.
=191.5 kg.

So, this is the way how we can measure fabric weight by the known GSM of this fabric. If you have any question related this post never hesitate to ask me.

Written by

A.M. Amirul Islam (Washim)
E-mail: [email protected]
Cell : +8801929643301

Calculation of Weaving Cost and Profit

Calculation of Weaving Cost and Profit

There are lots of weaving factory in our country. So, it’s very important to know about the calculation of weaving cost calculation. So, today I am presenting a sample calculation of weaving cost and profit.

calculation of weaving cost and profit, Weaving Fabric in a Loom

Weaving Fabric in a Loom

Cost for following fabric construction

   (128X60)/(20X16)

Twill 100% cotton fabric.

  • Per yard cost for warp yarn: 45 BDT (for example)
  • Per yard cost for weft yarn: 24 BDT

So per yard yarn cost: (45+24) = 69 BDT
Weaving charge: 18 Tk/yard
Total- 87 taka.

  • Dyeing wastage: 5%m

So, for dyeing wastage: 5% of 87

= 4.35 taka
So, including dyeing wastage cost is : (87+4.35)=91.35tk

  • Dying charge: 32 taka/yard

So, including dying cost total cost is – (91.35+32) =123.35tk/yard

  • If desired Profit is: 15%

So profit = 15% of 123.35 taka

= 18.50 taka

  • So overall price (you have to sell): (123.35+18.50)  = 141.85 BDT/YARD

= 1.89$(us)/yard (Here 1$ = 76.68)

Written by

A.M. Amirul Islam (Washim)
E-mail: [email protected]