Calculate the CM of a Garments.

Calculate the CM of a Garments.

To find out the CM of a item you must need the following 06 (six) information at first, as listed below:

i. Monthly total expenditure of your factory with factory rent,commercial cost, electricity bill, water bill, transportation, repairing, worker & stuff wages etc. (8hrs/day) in bangla taka. Suppose - 50,00,000/- tk


ii. Qty of running Machine of your factory of the following month (which total expenditure we have consider here). Suppose - 100 machines 


iii. Number of machine to complete the layout for the following Items (which CM we are calculating). Suppose - 25 machines 


iv. Production target/capacity of the following items, per hour from the existing layout, excluding alter & reject. Suppose - 200 pcs per hour 


v) Total working day of the followings month,(though the house rent,commercial expenses,machine overhauling & some other cost remain same)Suppose- 26 days. 


vi). If you want to calculate the CM in US$ (dollar) then pls input present dollar conversation rate BDTk. Suppose - $1 = 74 taka.

CALCULATION OF 

COST OF MAKING (CM) 

= {(Monthly total expenditure of the following factory / 26) / (

Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} / [{(Production capacity per hr from the existing layout, excluding alter & reject) X 8}] X 12 / (Dollar conversion rate)


= [{(50,00,000 / 26) / ( 100 ) X (25)} / {(200) X 8}] X 12 / 74


= [{192307.7 / (100) X (25) } / 1600] X 12 / 74 


= (48,076.9 / 1600) X 12 / 74


= 30.048 X 12 / 74


= 360.58 / 74


= $4.873 / dozen (this is the making cost (12 pcs) of the following items) 

However, normally at present (after starting the new salary scale) in Bangladesh we calculate the CM of any item consider the overhead sewing machine cost 1200 tk to 1400 tk/day that means $16.216 to $18.92/per day. 


Above is for a non-compliance factory. For the a compliance factory the per day machine cost will be 1800 tk to 2100 tk ( $24.32 to $28.37)


SO, if the an items produce 1600 pcs per day using 25 machines then the CM will be 


= Overhead machine cost X require machine / produce quantity X 12 / $74


= 1400 X 25 / 1600 X 12 / 74


= $3.547/DOZ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Factory Layout:

Factory Layout Factory layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. with in the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of damage to the finished product.

ESSENTIALS:

ESSENTIALS a) Proper and efficient utilization of available floor space b) To assure that work proceeds from one point to another point without any delay c) Provide enough production capacity d) Reduce material handling cost

ESSENTIALS:

ESSENTIALS e) Reduce hazards to personnel f) Utilize labor efficiently g) Provide ease of supervision and control h) Allow high machine or equipment utilization

Slide 5:

Types Of Factory Layout Vertical Layout Horizontal Layout

Block Diagram Simple Horizontal Garment Unit:

Block Diagram Simple Horizontal Garment Unit PANAL CHECKING DEPARTMENT STORE ROOM PACKING & LOADING DEPARTMENT STICHING & CROPING DEPARTMENT FINISHING & CHECKING CUTTING DEPARTMENT PRINTING DEPARTMENT

Types OF factory layout:

Types OF factory layout Horizontal All operations are in single floor Conveyor belt system is use Max land required

Block Diagram Simple Vertical Garment Unit:

Block Diagram Simple Vertical Garment Unit Floor 4 PANAL CHECKING DEPARTMENT Floor 6 STORE ROOM Ground Floor PACKING & LOADING DEPARTMENT Floor 2 STICHING & CROPING DEPARTMENT Floor 1 FINISHING & CHECKING Floor 5 CUTTING DEPARTMENT Floor 3 PRINTING DEPARTMENT FLOW OF GOODS

Types OF factory layout:

Types OF factory layout Vertical One operations on single floor Lift system is use Minimum land required

Types Of Systems:

Types Of Systems Single Product line system Single Style Of Garment Faster Production Rate Bundles Are Passed To Machines

Types Of Systems:

Types Of Systems Module bass Product line system Multi Style of Garments More Efficient Production Pieces Are Passed To Machines

Example:

Example UNICON INTERNATIONAL

Factory Layout Of UNICON:

Factory Layout Of UNICON Ground floor Firs-t floor

Core Departments Of UNICON:

Core Departments Of UNICON Cutting Depart Centralized cutting According to ratio GGT machine for minimizing waste

Core Departments Of UNICON:

Core Departments Of UNICON Stitching Single production line system Module based production line system Cropping

 

Core Departments Of UNICON:

Core Departments Of UNICON Finishing & Packing Depart Pressing Checking Packing