CM Analysis and Feedback of Garments

CM Analysis and Feedback of Garments

This analysis is done in a famous knit factory of Bangladesh based on SMV, CM, and efficiency. SMV -efficiency variance, CM earning and loss report also included in this analysis. Hope this article would help you.

Dec’18 to Feb ’19 all unit DPR summary

  1. Total Sewing quantity: 14.28 M PCs
  2. Average MKT SMV/PCs: 8.93
  3. Average Sew SMV/PCs: 8.72
  4. Average Layout MP(OP+HLP): 36
  5. Average Used MP(OP+HLP): 38
  6. Average Expected Efficiency: 44.93%
  7. Average Achieved Efficiency: 42.54%
  8. Average MKT CM/DZn: $8.60
  9. Average PLAN TGT CM/DZn: $11.72
  10. Average SEW CM/DZn (USED)       :  $13.52
  11. MKT Vs Plan Tgt CM Variance: $3933.0123 M
  12. MKT Vs Used CM Variance: $6192.5275 M
  13. Plan Tgt Vs Used CM Variance: $2259.5151 M

Dec’18 to Feb’19 unit-01 DPR summary

  1. Total Sewing quantity: 5.49 M PCs
  2. Average MKT SMV: 8.44
  3. Average Sew SMV: 8.26
  4. Average Layout MP(OP+HLP): 34
  5. Average Used MP(OP+HLP): 42
  6. Average Expected Efficiency: 48.61%
  7. Average Achieved Efficiency: 35.74%
  8. Average MKT CM/DZn: $8.20
  9. Average PLAN TGT CM/DZn: $9.62
  10. Average SEW CM/DZn (USED)           :  $14.61
  11. MKT Vs Plan Tgt CM Variance: $228.0043 M
  12. MKT Vs Used CM Variance: $1024.7610 M
  13. Plan  Tgt Vs Used CM Variance: $796.7567M

Dec’18 to Feb’19 unit-02 DPR summary

  1. Total Sewing quantity: 4.14 M PCs
  2. Average MKT SMV/PCs: 9.30
  3. Average Sew SMV/PCs: 9.05
  4. Average Layout MP(OP+HLP): 37
  5. Average Used MP(OP+HLP): 33
  6. Average Expected Efficiency: 43.08%
  7. Average Achieved Efficiency: 52.08%
  8. Average MKT CM/DZn: $8.68
  9. Average PLAN TGT CM/DZn: $12.84
  10. Average SEW CM/DZn (USED)       :  $9.87
  11. MKT Vs Plan Tgt CM Variance: $515.6169 M
  12. MKT Vs Used CM Variance: $147. 5045 M
  13. Plan  Tgt Vs Used CM Variance: $368.1123 M

Dec’18 to feb’19 unit-03 DPR summary

  1. Total Sewing quantity: 4.64 M PCs
  2. Average MKT SMV/PCs: 9.18
  3. Average Sew SMV/PCs: 8.97
  4. Average Layout MP(OP+HLP): 37
  5. Average Used MP(OP+HLP): 39
  6. Average Expected Efficiency: 43.16%
  7. Average Achieved Efficiency: 39.51%
  8. Average MKT CM/DZn: $8.92
  9. Average PLAN TGT CM/DZn: $12.68
  10. Average SEW CM/DZn (USED)       :  $16.19
  11. MKT Vs Plan Tgt CM Variance: $508.2320 M
  12. MKT Vs Used CM Variance: $982.4476 M
  13. Plan Tgt Vs Used Tgt CM Variance:  $474.2156 M

*Data Source

  1. Data based on the Daily Production Report(DPR)
  2. CM based on Finance dept. report
  3. CPM based on Finance dept. data (.0358 $)

CM Variance

CM Analysis and Feedback of Garments

Unit Wise CM Variance

Unit Wise CM Variance

Buyer Wise CM Variance

Buyer Wise CM Variance

Average Marketing VS Average Used CM

Average Marketing VS Average Used CM

Average Plan Target VS Average Used CM

Findings from Analysis

  • CM loss at Marketing  $3,933.0123 [Dec’18-Feb’19]. Only Buyer ‘Promodoro’ Marketing CM gain $5.8259.
  • Average Marketing SMV & Average Sewing SMV difference 0.21. SMV used in production less than Marketing, which is a positive fact to gain profit.
  • CM loss of Unit-01 & Unit-03 in production, use of more manpower than Marketing, the achievement of less efficiency than Marketing are the reasons for the loss in CM.
  • In Unit-02, efficiency gain (52.08%) is more than expected (43.08%) but used CM is more than Marketing & Less than Plan target CM.  If there was no loss during Marketing, CM gain would be profitable.
  • Efficiency variation avg 2.40% than expected which results in total CM loss.

Feedback from Analysis

  • CM based target need to establish for-profit gain in CM.
  • The capacity calculation/ projection should be followed by CM considering SMV, Manpower, Working hour, Efficiency as well as Quality.
  • CPM should be standardized/similar for all buyer & all units.

The Necessity of CM Based Target Set-up

  • Currently, Garments profit calculation based on FOB. But in practice, it is the total performance of Textile, Fabric finishing, sewing, printing, embroidery, Garments finishing, logistics, etc. & investors profit percentage, deficiency cost.
  • Profit calculation & evaluation will be equal for all units.
  • CM based target can be used for other units like Textile, AOP, Finishing, Dyeing, etc. to measure performance more precisely.

Pre-activities for CM Based Capacity Allocation which we Want to do for Future

  • Production floor should be Industrial Engineering database controlled.
  • 6S/7S Training & auditing system should be established for all employees of all departments.
  • Floor IE must know operation breakdown, CM & Efficiency analysis.
  • Line balancing, workstation standardization, lean management training needed for IE & production people also.
  • No modification in Line layout (SMV, MP, M/C) will happen by approval of Corporate IE department.
  • The cutting section should be IE based CM calculation to improve efficiency & gain profit from Cut-make section.
  • Finishing section should be IE based CM calculation to improve efficiency & gain profit from the make-trim section.
  • The textile sector should be IE based to reduce re-process & re-work. In the long run, it will gain more profit from the textile sector.
  • Printing IE activities will be vast to CM based capacity allocate for making it more precise in profit gain & efficiency achievement.
  • Other production units need to Industrial Engineering controlled to achieve target efficiency & profit.

A Positive Outcome from Proposed Implementation Ideas

  • There will be no CM loss during marketing stage. Use of similar CPM will lead the marketing team to work for plant target CM wise order taking.
  • CM loss will not happen in the production stage with proper manpower utilization, efficiency achievements; quality products by IE based production system.
  • CM profit is the core profit percentage of FOB & our factory profit margin will increase by proper implementation of IE-based activity in every sector.

Written By
Sharmin Akther Diba
Industrial & Production Engineer
Rajshahi University of Engineering & Technology
Email: [email protected]
LinkedIn: Sharmin Akther Diba