Garment Costinga
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Transcript of Garment Costinga
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Arriving at the final price to be quoted to the buyer /retailer
It is the responsibility of marketing merchant
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Merchant
CAD
PurchaseSpecialprocess
departments
IED
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Fabric cost
Shell
Lining
Trims
buttons
Threads
Labels
Process
Cut, sew&finish
Specialprocess
Otheroverheads
Marketing Accounts &
administration
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How much is the consumption
Marker Obtained from CAD
What is the Cost per Meter
Data either given by fabric sourcing or mined from data base
Confirming cost with fabric mill if necessary
Wastages How much wastage need to be taken (normally in % terms)
Based on merchants experience and type of product
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At the time of order confirmation retailer is notproviding the size wise ratio. Now the CADdepartment asks you to advise won the ratio and theno. of ways for costing marker
What will be your decision?
Costing marker is the initial marker given by CAD todetermine the fabric consumption for cost quotation
Subsequently different markers will be developed byCAD which are called as production markers
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First mode of deciding Choose medium or large size and go for 4 or 5 way marker
Total marker length / no. of ways will give the fabricconsumption per garment
Is this enough Have you accounted for fabric shrinkage?
Can ask CAD to incorporate shrinkage into patterns What is the shrinkage % to add?
Either by experience or by testing
Will the costing marker be able to cover up even whendifferent markers need to be developed in different sizeratios
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Second mode of deciding
Check for previous orders
Are you able to detect a pattern in terms of size ratio?
If yes then follow the previous size ratios Do we have to add some percentage extra here?
There is every chance that buyer might tweak the ratiosso better have some buffer here
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Do I have to order extra fabric? Yes, because of Buyers allow exporter to ship extra % (anywhere
between 2-5%).Opportunity to earn more Penalties which buyer will impose if we fail to fulfill the
order below a certain percentage (say 97% or so)
How much extra to order? Process / styling difficulties
Over dyeing results in 8% rejections. So better cut 8% extra
and order fabric according to that Styles which have embroidery done on printing have more
chances of rejection as placement of embroidery & printtogether is difficult to achieve
Allowance given by buyer
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Labels
Usually nominated suppliers
Cost taken from data base
Interlining
Separate marker for interlining
Given by CAD
Laces Normally purchased in meters
Consumption given either by pattern master or IED
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Buttons
Manual count by merchant
Care to be taken to count extra buttons to be provided
Embroidery thread
Given by embroidery planner / designer
To be purchased in cones of 1000 /3000/5000 meters
Finishing accessories Carton box, carton dividers, matchbook ticket ,hanger
Sizer, poly bag (individual & master poly bags)
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Different type of threads used for differentOperations
Normally top stitching thread needs to be prominentlyvisible . So thicket thread is used
Overlock machines require different ticket sizecompared to single needle lock stitch machines
Finer threads are required for blind hem operations
Few operations need to be done with filament threads
Merchant does not have the time to analyze all this Merchants responsibility is to handover the garment
and the techpack to IED for thread consumption
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Operation
MC Top /Needlethreadratio
Bottom /bobbin/looperthread
ratio
Operationsew length
Topthreadconsumption
Bottomthreadconsumption
TopthreadTkt no
BottomthreadTkt no
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Can I trust the consumption given IED might give higher consumption to mask operation
inefficiencies / higher wastages in production floor Dead stock will be created because of excess consumption
calculation
Is there any way to avoid dead stock of threads Question the wastage percent taken
Often 15% wastage taken for threads without considering the orderquantity, color wise quantity
15% wastage is correct only for smaller order quantities with lot ofcolors
Order only 80% of the total thread requirement first. No onein production will keep track of threads. Check when theorder nears to the end for extra thread requirement and orderbased on the current consumption based on production andtotal cones utilized This is possible only if threads are locally sourced
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Elastic threads
Can be imported Lead time of 15 days
Smocking threads Glossy threads
Matching shades will be a problem if we have to purchaseagain
Beads & sequences Either by count or by weight
IED is responsible
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Style 1 Style 2
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Style 1
No pocket
No flap
No plaid matching
2 pockets
2 flaps
Plaid matching at front
2 way plaid matching
Flap & pocket plaids
match to front
Style 2
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Pre requirements to calculate production cost
Merchant is responsible to produce a garment made ofeither actual or substitute fabric
Need to give techpack along with the garment There are 3 ways to arrive at the production cost
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Merchant shows the garment to GM / factory manager/Production manager
Based on their experience productivity commitment istaken (Commitment either given by GM/ FM /PM)
Time taken for one garment is = 8 (hrs)/ Productivity(pcs)
Accounts / Finance department would give MC Hour
Rate MC Hour Rate = ( Total cost of running the factory per
day) / (total no. of sewing machines x hours per shift)
Production cost = Time in Hrs X MC Hour Rate
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Committed productivity is 6pcs per MC
MC Hour Rate is Rs 115
Time taken per garment is =(8/6) = 1.33 Hrs
Production cost = 1.33 X 115= 152.95 Rs
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IED provides SMV or SAM value
Based on past data of total SMV / SAM produced andthe total expenses incurred cost / SAMdata will beprovided by accounts department
Total SAM for garment x cost / SAM = Total cost ofproduction
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Total SAM for garmentgiven by IED is 45minutes
Cost / SAM given byaccounts / finance is 3 Rs
Total production cost =45*3 = 135 Rs
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Both methods calculated total cost based on thesewing content only
But in practical view point few styles are difficult to cutand few types of finish / packing is difficult
The time taken to cut a plaid shirt with matching andthe time taken to cut a solid shirt which has nomatching parameters are different
Stand up pack for shirt takes more time than hangerpack
Now how to accommodate these concerns?
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If possible better to workout the content of eachdepartment separately
Each department cost is to be analyzed and rates to befixed per hour
Estimation of time to be taken per garment is done foreach department
Adding up the individual department costs will
provide an accurate cost estimation of production
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Cut time estimation is 3.5 mins Sewing time estimation is 48 mins
Finishing time estimation is 8 mins
Cut work center rate is 100 Rs
Sew work center rate is 60Rs Finish work center rate is 80 Rs
Cut cost = 3.5 X (100/60) = 5.83 Rs
Sew cost = 48 X (60/60) = 48 Rs
Finish cost = 8 X (80/60) = 10.67 Rs Total production cost = 5.83 +48
+10.67 = 64.5 Rs
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Merchants responsibility to providesample with correct wash effect
Washing cost is determined by thewashing team based on Type of wash needed Feel & look of wash Tinting is required or not Weight of the garment
Different wash types have different costs/ Kg Softener wash : 30 Rs /Kg Enzyme Softener wash : 45 Rs/ Kg Reactive dyeing : 100 Rs /Kg Pigment & reactive dyeing : 130 Rs/ Kg
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Merchant has to providesample / artwork toembroidery department
Design is developed usingsoftware
Total no. of stitches isprovided by software Cost is calculated based on
1000 stitches Normal cost taken for single
color embroidery is 0.9 Rs /1000 stitches
This can go up to 1.2 Rs / 1000if no. of colors go high & no.of framings required is more
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Merchant has to providesample to either in-house printing in chargeor to the subcontractor
Printing costs vary basedon Wet Vs Dry prints Direct Vs Discharge Vs
Resist printing Rotary screen Vs Flat
screen Vs Transfer VsDigital printing
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Trial and error basis Need to get quotation from
different subcontractors Vendors production
capacity is an importantfactor
Cost is based on no. ofbead / sequin to beattached
Cost can be reduced byreducing the no. of knotsrequired to finish thedesign
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Few other special processes for which merchant mighthave to determine cost. They are Fraying of edges (intentional)
Smocking (if in-house factory does not have machines)
Braiding of draw cords
Special types of stitching machines (if machines are notavailable with in-house) Picot
Fagoting Zigzag
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Marketing overheads
Finance, accounts & distribution overheads
All these overheads are calculated as a percentage of
total turn over(i.e based on FOB)
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Indian government offers duty drawbacks if the fabricis purchased domestically
This drawback varies based on the fiber content anddifferent fabric have different duty drawbacks
Indian government pays the exporter a percentage ofthe FOB value for using domestic fabrics
This duty drawback needs to be subtracted from the
cost to arrive at total cost of garment
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FABRIC COST
TRIMS COST
PRODUCTION + SPECIAL PROCESS COSTOVERHEADS
DUTY DRAWBACK
PROFIT PERCENTAGE
FINAL PRICE QUOTED TO BUYER
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Cost sheet is a document in which all the cost are listedand the final price that is to be quoted to the buyer iscalculated
Cost sheet is prepared by merchants and signed offeither by their division mangers or CEOs or the MDdepending on the organization
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