Necessary IE Terms of Apparel Industry

Industrial Engineering – IE is one of the popular term used in the apparel industry, where this work for optimization of complex process within the industry. Optimization is applicable to men, machine, materials, methods, and monetary resources. Here in this article you will have details of necessary IE terms of apparel industry with examples.

Necessary IE Terms of Apparel Industry

Necessary IE Terms of Apparel Industry

Needed Industrial Engineering (IE) Terms Mostly Used in Apparel Industry

Very basic apparel industrial engineering terms discussed with example for clear understanding. List of terms are:

  1. Standard minute value (SMV)
  2. Efficiency
  3. Line target
  4. CPM & CM
  5. CM/COM/MC
  6. Broad calculation of garments cm
  7. Conventional vs modern profit theory
  8. Cost of making (CM) rule
  9. Work study
  10. Time & motion study
  11. Line balancing

1. Standard Minute Value (SMV)

  • SMV defined as the term Standard Minute Value, is mostly used in the garments industry and it is a common measurement calculated by the Industrial Engineer. Generally, SMV indicates the time taken to make garments by the workers using the right types of machinery.
  • SMV = BASIC TIME + (BASIC TIME × ALLOWANCE)
  • Suppose to complete an operation, a standard operator takes 1 minute.
  • We put 15% allowance (Men, M/c & Time)
  • SMV=1+(1×.15) Min
    =(1+.15) Min
    =1.15 Min
  • GMT SMV is the sum of SMV for all M/c & Manual operation to complete an item

Related Terms of SMV

  • Standard Operator: For a specific item & style, the potential operator who can give maximum output with the best quality & can improve productivity.
  • Let’s see an Example for better understanding,
  • Batsman faces 10 balls to score 5 Runs
  • Batsman faces 10 balls to score 12 runs
  • Batsman faces 10 balls to score 10 runs.
  • Obviously 2nd one is the potential batsman who uses his
  • Inputs (balls) to get maximum output (Runs)
Related Terms of SMV Standard Operator
  • Pre-defined Conditions: On time input arrival, single piece flow, running m/c conditions, defined quality status, etc. are called pre-defined conditions.
  • Basic Time: Actual time to complete an operation. In another word, basic time is the pick & drop time including an operation for quality output.

                        Basic Time= Pick time + Operation + Drop time;

                        Result , Input=Output with required quality

  • In a broad sense , a GMT SMV=Sum of all operation SMV, not SMV of GMT + allowance.

2. Efficiency

  • Efficiency defined as ’The comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (Men, M/c, Material, etc. )’’
  • Efficiency = Earned Minute/Available Minute
  • Earned Minute = Production (Pcs) x SMV
  • Available Minute = Manpower (Helper + Operator) x Working Time (Minute)

Calculation of Efficiency Percent

  • Suppose any GMT item SMV is 5.5 (For any fixed style SMV always fixed)
  • We use 22 Manpower(Operator & Helper) to achieve 1500 Pcs for 10 hours working shift
  • Earned Minute = 1500× 5.5 or 8250 Min
  • Available Minute = 22× (10×60) or 13200 Min
  • Efficiency = 8250 Min/13200 Minute or 0.625
  • Efficiency is expressed as % ,Then Efficiency =(0.625 ×100)% or 62.50%
  • Efficiency is a ratio, not a number.
  • Efficiency varies with Lead Time and Quantity. More Lead time & Quantity Increase Efficiency, on the other hand, less lead time tends us to use more MP or time to get the required output, so efficiency reduces.

3. Line Target

  • Target= (total MP X WH X 60)/SMV
  • Suppose We have 22 MP for 10 hr .GMT SMV is 5.5
  • Target =(22 X10 X60)/5.5 =2400 PCs/Hr (That is 100% TGT)
  • For expected efficiency this 100% Target is multiplied by efficiency to fix Line Target
  • Line Target =(2400X.625) ; (Lets , we have expected efficiency of 62.5%)
    =1500 PCs or 150PCs/Hr

4. CPM and CM                   

CPM Stands for Cost Per Minute which means Cost of every minute of garments sewing operations. To offer the best competitive price to the buyer and make maximum profit on garments selling CPM cost need to be kept at a minimum level.

For Calculating of CPM you need to sum all direct labor cost and any other operational cost for a particular order or for a particular period.

5. CM/COM/MC

  • Cost of Making (CM/COM)/Manufacturing cost(MC) have to calculate after calculating factory CPM.
  • CM = (SMV × CPM)/ Expected Efficiency%
  • Suppose , any GMT item SMV is 4.7, Expected efficiency = 65.8 % , CPM[let] = $0.0267
  • CM = (4.7 × .0267)/ .658
    = $0.19/PCs
    = ($0.19 ×12)/Dzn
    =$2.28 /Dzn

6. Broad Calculation of Garments CM

To calculate the Cost of Making of a garment you have to collect the following information:

  • First of all, you need to get the monthly information of factory rental expense, commercial expense, utility expenses (Electricity, Steam, Compressed Air, Water), transportation cost, repair & maintenance expenses, salary, and wages expense, etc. suppose for all these expenses the total cost is 70000 USD.
  • Secondly, the number of functioning machine for a particular month. Suppose the number of machines is 120. Cost associate in the first section is for this 120 machine.
  • You also need the number of machinery to do the layout for the particular item for which we are calculating the cost of making. Suppose the number of machines is 30.
  • By using the existing layout, the amount of target production per hour (excluding the alteration and rejection of garments). Suppose 250 pcs per hour production will be there.
  • The total number of working days for a particular month. This can be 26 days (30 days a month, 4 days of holiday in a month)

Cost of Making (CM) Rule

= {(Monthly total expenditure of the garments factory/ 26 days) / (Number of Functioning Machine of your factory for a particular month) X (Number of machine to complete the layout)} / [{(Production capacity per hour by using existing layout, excluding alteration and rejected quantity) X 8 working hours a day}] X 12 piece

= [{($70,000 / 26) / (120) X (30)} / {(250) X 8}] X 12

= [{2692.30 / (120) X (30)} / 2000] X 12

= (673.08 /2000) X 12

= .33654 X 12

= $4.04/dozen

7. Conventional VS Modern Profit Theory

  • Conventional : COST + PROFIT = PRICE
  • Modern : PRICE – COST = PROFIT
  • Price should be moderate to get maximum order!
  • Cost should be minimized to get maximum profit!

 9. Work Study                                   

  • A systematic study of methods of work to improve effectiveness & set standards
  • 2 stages:

1. Method study: study of current method & find out to implement the improved method

2. Work measurement: determine the standard time required to complete improved method

Benefits of Work Study

  • Productivity improvement
  • Efficiency increase
  • Improved workflow
  • Improved work layout
  • Improved standards

10. Time and Motion Study

  • Time study: a work measuring technique to calculate basic time by finding cycle time & adding allowance
  • Motion study: a technique to analyze operators motion & set a standard by eliminating unnecessary motion
  • Two different theory but need parallel running to improve system known as ‘method engineering’
  • Time & motion study is a conjugal technique to process control, improve dissimilar work performance & set standard goals
  • IE is a combined package to improve by time study, work study & motion study

11. Line Balancing

  • Line balancing is a manufacturing engineering function in which the whole collection of production-line tasks are divided into equal portions.
  • Well balanced lines avoid labor idleness & improve productivity
  • Line balancing is for keeping workload (theoretical mp/actual mp) as 1 or less than 1 by balancing work as per capacity & target
Line Balancing in Apparel Industry

Steps for Line Balancing

Steps of Line Balancing in Apparel Industry
  • Bottleneck’ (constraint m/c or mp or operation that reduces productivity) have to find out
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
  • Find same m/c / m/c condition such as gauge/pressure feet/device/thread etc.
Example of Line Balancing of T-Shirt

Written by

Sharmin Akther Diba

Industrial & Production Engineer

Rajshahi University of Engineering & Technology

Email: [email protected]

LinkedIn: Sharmin Akther Diba

Costing of Knit Garments

Costing of Knit Garments: During the consumption, it is good practice to use the measurement of middle size for calculation or the size which have most of the quantity. For example, If the style has 6 sizes then better to use size number 04 for consumption. Here we will show you the calculation consumption for the size “L”.

Costing of Knit Garments

  1. Body length of the garments in cm. Say it is – 73 cm
  2. Sleeve length of the garments in cm. Say it is – 19.5 cm
  3. Approximate stitching allowance at body hem, shoulder joint, sleeve hem joint (in cm). Say it is – 10 cm
  4. Chest width (1/2) in cm. Say it is – 52 cm
  5. Approximate stitching allowance at each facet seam (in cm). Say it is – 4 cm
  6. Fabric GSM (finish). Say it is – 160 gsm
  7. Approximate fabric wastage in various stage. Say it is – 10%

In this regard, fabric wastage depends on how many additional elements the garments have, which may change in any time. When there is rotary print in garments or enzyme stone wash than the amount of fabric wastage will be more than the normal level of wastage.

Knit Garments Costing Formula

Costing of Knit Garments, Knit Garments Costing

What need to know or do before start costing

Fabrication: Take clear idea regarding the fabrication before taking the order from the buyer/buying house. After then, you need to ensure that you have a strong a good source of fabric.

Size specification: You also need to ensure that there is a correct size specification with the measurement of all the sizes, which will be ordered. Most of the time we see that PO sheet has come with a new bigger size which was not included during costing.

Fabric color: Try to know that, how many colors the style has & also try to know that, color-wise order quantity ratio.

Quantity: Take information regarding approximate order quantity.

Shipment date: Asked buyer for the shipment date and check with your production department, whether they have enough space for shipped out the followings qty within the require ship date or tell you’re a possible date.
Test requirement: This will allow you to recognize the order need to any test or not.
L/C payments term: Take a copy from the respective party previously and discuss with your commercial people regarding all the terms along with payment terms.

Inspection: Get a confirmation from the buyer that, who will inspect the goods. If there involve third party then who will pay the charge.

GSP: Please confirm with the buyer that they need the GSP or not.

Calculating Fabric Consumption

Body Consumption: 

Calculate the body fabric consumption at first. If possible calculate it after making the pattern. Be confirmed regarding the dia. Calculate the consumption with adding + 5 gsm extra which fabric is sells in kg (s/j, pique, rib etc.). Or reduce 2” (in width) from the both side which are in yards (tricot, taffeta etc.). Moreover, if the garments are wash garments then make sure that, the pattern has the wash allowance.

Moreover, if clothes|the clothes} square measure wash garments then ensure that the pattern has the wash allowance.

Rib: Calculate the rib consumption carefully because sometimes the garments have a rib at cuff opening & bottom hem. Some individuals erroneously do the consumption considering one cuff.

Neck tape: Calculate the consumption of neck tape.

Applique & others fabric: Ensure that, you’re not missing any appliqué cloth.

Estimate the wastage: Normally we add 9% wastage for the knit items. However, it’s may vary depends on how many processes the garments have. If it is with only front chest print then 9% is ok but if with all-over /rotary print, with heavy wash etc. then you must increase the wastage. Moreover, if the garments with pigments dye then add minimum 25 to 30% wastage because in this pigment dye garments reject percentage is very high.

Others Item

Print: If the garments have print then make sure that you have a clear artwork of it. Check the print quality, dimension & placement. Send the artwork to your printers for a better price idea. Many times, we found that the buyer has asked for so many type/kind prints in the same body which is so difficult for production. Such as, if the buyer asked for Flock + discharge & foil print in at the same artwork then it is not possible for production.

Embroidery: Discuss with your embroidery provider concerning the embroidery & take quotation of price.

Wash: Take the washing cost from the washing factory.

Test: Confirm the charges of the test from the testing company.

Accessories and Trims

Sewing thread: Confirm that, which thread you need 100% cotton, spun polyester or filaments. Then you need to ensure the count 50/2 or 40/2 or any other denier. It’s may vary on fabrications. Regarding the pigment dye garments, we normally used cotton grey color cotton thread. Calculate the sewing thread consumption part by part & add require wastage percentage.

Labels: Take the quotation from your supplier for the entire woven & satin/paper label.

Tape: Calculate the consumption of tape if it has, such as Velvet, herringbone or canvas etc.
Elastic: Make sure which denier & width it need. Then take the quotation from supplier.

Zipper: If the garments have zippers then confirm that, from where you will purchase that. Many time the logo zipper need to import the mold from abroad. Make sure the zipper quality, such metal or nylon zipper. Check the zipper measurement from your production department and get prices from your zipper supplier.

Button: Take the button price from your supplier if the garments have it.

Inter lining: Calculate the inter lignin price if the garments need.

Patch or badge: Calculate the patch or badge or others metal item if the garments have.

Finishing item: Tissue paper, silica gel, hang tag, barcode sticker, backboard, h/tag string, scotch tape, security tag calculates the prices of these items.

Hanger: Take the quotation of a hanger.

Poly: Make the measurement of poly. Confirm the quality & with adhesive or not.

Carton: Find out the carton measurement & take the prices from carton supplier along with top, bottom & divider.

PP belt: Take the price quotation of pp belt if the buyer asked it.

Commercial Cost

Normally we add 3% of total purchase (Fabric cost+ other item cost + Accessories cost) as commercial cost if the L/C payments terms are as sight. If the L/C is 60 days deferred then you can add 7.5% additional cost of total price and it will be 15% for 90 days deferred.

CM (Cost of making)

Calculate the CM after finalizing CPM of the factory. It varies depending on Product SMV & Efficiency.

CPM (Cost Per Minutes) = (Direct Labor Cost + Operational Cost) of the month/ Usage Minutes (Available Minutes) of the month.

CM= (SMV × CPM)/ Expected Efficiency%

Price Break Down of Polo Shirt

Description: 100% cotton pique polo shirt with two buttons at front placket w/o any pocket. At first, we will calculate the consumption of body fabric from Size spec which we have got from the buyer.

Suppose,

i) The body fabric consumption is 5.10 kg / dozen

So, total yarn consumption will be = 5.10 + 9%

= 5.10 + 0.459

= 5.559 kg / dozen

ii) The current yarn price is $3.5.00/kg

iii) The current Pique knitting cost is $0.25/kg (Knitted by circular knit S/J M/c)

iv) Average color dyeing cost is $1.23 / kg

v) Normally Collar & cuff consumption is 60 gram/body (1 pc collar & 2 pcs cuff)

So, for 12 pcs it will be -0.06 X 12 + 9% = 0.78 kg / dozen

vi) Collar & cuff Knitting cost is $0.05 (knitted by flat knitting m/c)

Step: 1

Body fabric cost calculation:

Yarn price / kg = $3.50

Knitting cost /kg = $0.25

Dyeing cost / kg = $1.23

Finished fabric cost = $4.98

Step: 2

Collar & cuff cost calculation:

Yarn cost/Doz = 0.78 X $3.50 = $2.73

Knitting cost/Doz = $0.05 X 12 = $0.60

Dyeing cost = 0.78 X $1.23 = $.9594

Collar& Cuff cost / Doz = $4.2894

Step: 3

Total production cost:

Body fabric cost (5.559 kg X $4.98)  

= $27.68 / Doz

Collar & Cuff cost = $4.2894 / Doz

CM = $5.50 / Doz

Accessories Cost = $2.50 / Doz

Total production cost: = $39.97 / doz

Final Step

Fob pricing of per piece polo shirt:

Total production cost: = $39.97 / doz Commercial cost will be (3%) = $1.03 / doz (Except Cost of Making)

Profit will (20% of Cost of Making) = $1.10 / doz

Total FOB price (doz) = $42.1 / doz

Fob price per piece will be = $3.5083 / pc

Final quoted price for buyer = $3.51 / pc (FOB)

Written by

Sharmin Akther Diba

Industrial & Production Engineer, RUET

Email: [email protected]

Linkedin: Sharmin Akther Diba

Standard Minute Value: SMV in Garments, Calculation, Importance

Standard Minute Value: SMV in Garments, Calculation, Importance

The term Standard Minute Value – SMV is mostly used in the garments industry and it is a common measurement calculated by the Industrial Engineer. Generally, SMV indicates the time taken to make garments by the workers using the right types of machinery. In garments factory, you may find that many people used to the SAM – Standard Allowed Minute which is same as SMV. SMV varies garments to garments, style to style, factory to factory. Management and buyers ask for SMV and it is the responsibility of the IE department to calculate SMV and give it to the respective parties. Here in this article, I will share details of Standard Minute Value: SMV in Garments, Calculation, Importance with a practical example.

Industrial Engineering is concerned with the design, improvement, and installation of an integrated system of men, machinery, and materials. SMV is one of the most important tools used by IE.

Standard Minute Value - SMV in Garments, Calculation, Importance

The prime objective of industrial engineering is:

  • To Increase Productivity
  • To eliminate waste and non-value added activities
  • To come up with the optimum use of scarce resources that would bring out the best results.

Importance of SMV in the Apparel Industry

The reason Why we use SMV in Garments Factory is given below

  • SMV is calculated for doing a costing of garments
  • It is used for calculation of target and set the right target
  • For Calculating the Efficiency of workers
  • SMV is calculated for making a plan and take effective factory production decision.

For Calculating SMV – Standard Minute Value in Garments you must have a proper idea of machine operating procedure and working process of workers. Close observation of Industrial Engineer is required to calculate the right SMV for a particular product or style in your factory.

Basically, SMV is the sum of the basic time requirement and allowance applicable to it. Normally allowance is given at the rate of 10% based on the efficiency.

Formulas of Calculating SMV

SMV in Garments Formula

Calculation of SMV in Garments

SMV = (Basic Time + Allocated Allowance)

The formula of Basic Time = Observe Time x Rating Factor

Basic Time: Basic time is the most likely time required to make garments considering observe time and applicable rating factors.

Observe Time: Time taken to do a work when an observer is observing closely and record the worker’s work speed.

Calculation of Observe Time = Total Cycle Time is divided by Number of Cycle

Cycle Time: Cycle Time is the time between starting a garments manufacturing and finishing of those garments.

Rating Factor: Rating factor is assigned based on an evaluation of worker performance which is conducted through eye judgment. A worker can be fast, slow and rating is on a scale of 100% to lower.

Costing SMV is calculated for sending SMV information to buyers. Normally 5% additional time is added with the actual SMV.

Costing SMV = Actual SMV + (Actual SMV x 5%)

Example of Calculation of SMV in Garments

Suppose for making a product the following assumption is there

  • Observe Time = 25 Minutes
  • Rating of Operator = 80%
  • Considering Allowance = 10%
  • Basic Time = 25minutes x 80% = 20 minutes
  • Allowance = 20 x 10% = 2 Minute

So, SMV = 20 minutes + 2 minutes = 22 minutes for making a particular garments product

Calculation of Capacity of Single Operator in Garments

  • If an operator works for 10 Hours a day
  • 30 minutes to make a product

Capacity = (1 operator x 10 hours x 60 minutes)/30 Minutes = 20 Pieces of Garments by an operator

If you assign 100 operators then your capacity will be = 100 operators x 20 pieces = 2000 pieces a day

Calculation of Efficiency Percent

  • SMV 22 Minutes
  • Working Hours 10 a Day
  • Number of Operators 100 person
  • Actual Production 2000 pieces

Efficiency (%) = (2000 pieces x 22 minute)/(100 operators x 10 hours x 60 minutes) x 100 = 73.33%

whereas the target was,

Target = (10 hours x 60 minutes x 100 operators)/smv 22 minutes = 2727 Pieces of garments

SMV of Different Types of Garments Manufacturing

Hopefully, you understand what is Standard Minute Value: SMV in Garments, Calculation, Importance of SMV in the apparel industry. If you have any confusion then please let me know. I will try to clarify farther in details.

Written by

Md. Nahian Mahmud Shaikat

Garments Cost of Making (CM): Meaning, Calculation, Example

Garments Cost of Making (CM)

One of the highest manufacturing industry is a 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 the cost of the garment 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 the cost of making means the cost of manufacturing garments. Monitoring garments making the 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

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

How to Calculate Garments Cost of Making

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

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 = 200 Piece
  • Number of Operator’s 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 Operators x 8 Hours x 26 Days x 60 Minute) X 65%
  • = 16,22,400 Minute

Fixed Cost of Garments

  • 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

Cost Per Minute of Garments

  • 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

*(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

Costing of Polo Shirt

Costing of Polo Shirt

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

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

costing of polo shirt

Polo Shirt

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

Written By

Engineer Sheikh Nurja

B.Sc engineer of textile

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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]