Wednesday, July 20, 2011

Calculate the CM of a Garments.

Learn Apparel Merchandising, Learn Fashion design.
Dear All,
My this post for these people, who's are still confused regarding the CM (cost of making) of a knit items (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. 


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


Now you should put the following information in the following form, which you will get here http://cmcostofaknitgarments.blogspot.com/ 


Otherwise you may follow the below rule:


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




Thanks
BIPUL  

23 comments:

  1. thk lot, daniel,0843843.

    ReplyDelete
  2. All of ur post really so helpful.
    Hope u'll continue it.

    Ur regarded,
    Md. Matiur Rahman.

    ReplyDelete
  3. This comment has been removed by a blog administrator.

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  4. This comment has been removed by a blog administrator.

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  5. Thanks a lot for sharing this. regards

    ReplyDelete
  6. thanks for sharing us such a valuable information

    Regards,
    Mamun

    ReplyDelete
  7. Really helpful & thanks for sharing...

    Thank you
    Bahalul!

    ReplyDelete
  8. Really helpful & thanks for sharing...

    Thank you
    Bahalul!

    ReplyDelete
  9. need sewing machine lay out of a polo shirt

    thank you
    mamun

    ReplyDelete
  10. Its totally outstanding..so helpful...i appreciate you.....

    ReplyDelete
  11. am higley appreciate....this is the real merchandising book as you said ...

    thanks a lot ...

    ReplyDelete
  12. can u send me formula of tee costing

    ReplyDelete
  13. Dear Bepul Bhai

    i can't understand above mentioned commercial cost please clearly define

    Thanks
    Regards
    Saad

    ReplyDelete
  14. Bro pls make the correction

    CM = [{(MTE / TWD) / (NRM / NML)} / (PCH x WHD)] x 12 / CR)}

    ReplyDelete
  15. (Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} it should be
    (Qty of running Machine of your factory of the following month) / (Number of machine to complete the layout)}
    Pls advise .....

    ReplyDelete
  16. How to calculate overhead operator cost..

    ReplyDelete





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