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

About Nahian Mahmud Shaikat

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