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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
= $3.547/DOZ
Thanks
BIPUL
Dear All,
My this post for these people, who's are still confused regarding the CM (cost of making) of a knit items (garments). To find out the CM of a item you must need the following 06 (six) information at first, as listed below:
i. Monthly total expenditure of your factory with factory rent,commercial cost, electricity bill, water bill, transportation, repairing, worker & stuff wages etc. (8hrs/day) in bangla taka. Suppose - 50,00,000/- tk
ii. Qty of running Machine of your factory of the following month (which total expenditure we have consider here). Suppose - 100 machines
iii. Number of machine to complete the layout for the following Items (which CM we are calculating). Suppose - 25 machines
iv. Production target/capacity of the following items, per hour from the existing layout, excluding alter & reject. Suppose - 200 pcs per hour
v) Total working day of the followings month,(though the house rent,commercial expenses,machine overhauling & some other cost remain same)Suppose- 26 days.
v. If you want to calculate the CM in US$ (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
THANKS
ReplyDeletethk lot, daniel,0843843.
ReplyDeleteAll of ur post really so helpful.
ReplyDeleteHope u'll continue it.
Ur regarded,
Md. Matiur Rahman.
really helpful article.
Deletethanks a lot
ReplyDeleteAjhar
Thanks a lot
ReplyDeleteAjhar
This comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteBepul bhai thanks for ur great posts
ReplyDeleteThanks a lot for sharing :)
ReplyDeleteThanks a lot for sharing this. regards
ReplyDeletethanks for sharing us such a valuable information
ReplyDeleteRegards,
Mamun
Really helpful & thanks for sharing...
ReplyDeleteThank you
Bahalul!
Really helpful & thanks for sharing...
ReplyDeleteThank you
Bahalul!
need sewing machine lay out of a polo shirt
ReplyDeletethank you
mamun
Its totally outstanding..so helpful...i appreciate you.....
ReplyDeleteam higley appreciate....this is the real merchandising book as you said ...
ReplyDeletethanks a lot ...
can u send me formula of tee costing
ReplyDeleteDear Bepul Bhai
ReplyDeletei can't understand above mentioned commercial cost please clearly define
Thanks
Regards
Saad
Great great great
ReplyDeleteBro pls make the correction
ReplyDeleteCM = [{(MTE / TWD) / (NRM / NML)} / (PCH x WHD)] x 12 / CR)}
(Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} it should be
ReplyDelete(Qty of running Machine of your factory of the following month) / (Number of machine to complete the layout)}
Pls advise .....
How to calculate overhead operator cost..
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