Important Formula For IE Department

Important Formula For IE Department

01. Target: No. of worker x working hour x 60 / SMV x expected efficiency. 02. Target: 60/SMV. 03. Line/Team target:  (60/SMV) x Present worker x Organization efficiency. 04. Target per day : Working hour x 60 x No. of operator / Target SMV. 05. Capacity: Average of total observe time x 1.66 + 15% Allowance / 60. 06. Factory capacity: No. of operator x working minutes + Present % x average factory efficiency. 07. Capacity per day: Present operator x working hour x organization efficiency x Attendance. 08. Weekly capacity: No. of operators x Absenteeism x Clock minutes per week x Average factory efficiency. 09. Marker efficiency: Area of patterns in the marker / Total area of the marker x 100. 10. Load: (Contract size x work content) contract 1+ (Contract size x work content) Contract 2 + etc. 11. Load: Order quantity x Work content (SMV of garments). 12. Observe time: Total cycle time / No. of cycle. 13. Basic time: Average of observe time X Rating %. 14. Sam: Basic time x Allowance. 15. Rating: Observe time x Standard rating / Standard rating. 16. Cycle time: 60 / Team target. 17. Pitch time: Total SMV / Present operator. 18. Efficiency: Earn hour / Available hour x 100 19. Efficiency: SMV / Total time. 20. Earn hour: SMV x Production / 60. 21. Available hour: Working hour x Use machine. 22. Performance: (Earn hour / Available hour - Off standard time) x 100. 23. Improvement: 1-(Production / Capacity). 24. Balancing efficiency: 1-Balancing loss. 25. Balancing loss: AML-TML/AMLx100. 26. Standard time: Net operation time x (1+ Ratio of loss time). 27. Daily output: Working hours (seconds) + Standard time. 28. Output per operator:  Work hours (second) / Total time of         operations. 29. Required No. of operators: Targeted daily output / Daily output per operator. 30. Target daily capacity: Daily work hours / Standard process time (SPT). 31. Daily capacity per worker: Daily capacity / No. of workers = Daily Work hours / Standard total processing. 32. Organization efficiency: Pitch time / Bottle neck process time (x 100) = 100/140 x 100 = 71.4% 33. Upper limit: Pitch time / Target organization efficiency = 100 / 0.85 = 117.6 seconds. 34. Lower limit: 2 x Pitch time - Upper limit = 2 x 100 - 117.6 = 82.4 seconds. 35. Planned daily work flow:  Daily work hours / Standard process time   (SPT) x organization efficiency. 36. Accumulated average time: Daily work hours/Accumulated x No.of days x standard No.of workers in the group/No. of pieces produced. 37. SMV: Basic time + Allowance time + bundle time. 38. DHU: No. of deffect observe / No. of garments checked. 39. Booking fabric K.G:  Order quantity / 12 x Fabric consumption   per doz. 40. Garments K.G.: Total receive fabric kg - (Save return kg + Jute kg + Wastage fabric kg) 41. Input to sewing pcs:  Total in pcs - (Print Embroidery short &   wastage + Cutting wastage pcs.) 39. Fabric consumption (CM):  Length x chest x 2 x GSM / 1000 / 10000   x 12 + Wastage%. 40. Fabric consumption (Inch):  Length x chest x 2 x GSM / 1000 / 1550 x  12 + Wastage%. TML: Theoretical machine level. AML: Actual machine level. AQL : Acceptable quality level. PMTS: Pre method time study. GSM: Gram squire per miter. BHT: Bundle handle time. SUM: Standard allocated minutes. TS: Technical allowance. TP: Personal allowance. TER: Recovery allowance. TV: Total allowance. WH: Working hour.

 

How to calculation CM in Garments industry ?

 

CM stands “Cost of Making”. Cost of making is very common word in garment sector because we get order from buyer based on CM. It depends on direct & indirect cost of making of a product. If cost of making of a product is expensive then CM will be high & cost of making of a product is low then CM will be less. So, we should carefully calculate CM of a garment otherwise we may face huge loss. According to this garments industry, we want to know accurate CM calculation in the following way.

We will apply two methods of CM calculation.

1. Mathematical method.
2. Operation Breakdown Method by SMV.

Before CM calculation we have to know below important notes

1. Total factory monthly expenditure. Like as factory rent, utilities bill, commercial charge, transport, worker & staff wage etc.
2. Total Number of machine in the factory.
3. Total number of machine for a garments layout.
4. Production target as per layout of a garment.
5. Per month total working hours.
6. Per day total working hours.

 

1. Mathematical method.

We know CM formula in the following

CM = Overhead machine cost X require machine / produce quantity per day of a specific style

Overhead machine cost=Monthly total expenditure / (26 X running machine of a factory on that month

Example:

If overhead machine cost is $22 & required machine (60 machines) as per layout of a particular garment. Per day production output 1200 units then what will be CM?

CM= ($23 X 60 / 1200)
= $1320/1200
= $ 1.10

=$1.10X12(if we consider per doz)

=$13.20/dz

2. Operation breakdown method by SMV

We will calculate CM in the following way.

CM=SMVX Labor cost per minute

As we know,

Labor cost per minute=Total salary of the labors in a month / Actual minute worked in a month.

Example:

If a basic pant produced by 18 minute & labor cost is $ 0.08 then what will be CM.

Here given,

SMV=18 minute

Labor cost=$0.08

CM=SMVX Labor cost per minute

CM=18x$0.08

CM=$1.44(100% efficiency)

If we consider per dozen then

CM=$1.44×12

CM=$17.28

So, CM will be $17.28

 

Tailoring versus Garment units

 

Below is  showing some basic differences between a tailoring shop and a garment manufacturing unit:

S/L no.	Tailor shop	Garment unit
1	One person to make one garment.	A group of people take part in producing one Garment.
2	No special machines or guides.	Every individual operator can be engineered using special machines and work aids.
3	Through put time is very high.	Very less through put time.
4	Very less productivity.	High level of productivity.
5	Individual measurements for individual.	Standard sizes (S, M, L, XL, XXL) given by Buyer.
6	High in labor cost.	Reduced labor cost.
7	Constant consumption irrespective of size.	Consumptions vary from size to size.
8	Poor stitching quality.	High quality garments
9	Shrinkages not considered.	Highly concerned on shrinkages.
10	Single piece garment is being cut.	Bunch of garments is being cut in one shot.
11	No patterns. Only templates.	Patterns for each component of a garment.

 
The socio-economic changes and the rapid growth of electronic media have resulted in the increased development of ready-to-wear garments. Being well-dressed has become a part of everyday life as it is one of the factors which enhance the personality of a person and win him appreciation in social life. This in turn has led to rapid industrialization and growth of the garment industry. As a result the industry needs trained staff and professionals to carry out the manufacturing process more scientifically.