CM Calculation
CM Calculation
CM Calculation
SAM of pants= Target per day/ per macine / 8 hrs shift (@ 100% efficiency) =
Target per day/ per macine / 8 hrs shift (@ 50% efficiency) = (Note - for order qty of 6000 units) Target per day/ per macine / 8 hrs shift (@ 30% efficiency) = (Note - for order qty of 6000 units)
CM (@ 50 % efficiency) =
CM (@ 30 % efficiency) =
Factory Expenses per day (including depreciation) Total available hours (Number of machines X normal working hours ie 8 hrs.) + (OT machines X OT hours)
(MHR X 8hrs) / (Target per day/ per macine / 8 hrs shift (@ 50% efficiency) 120 (MHR X 8hrs) / (Target per day/ per macine / 8 hrs shift (@ 30% efficiency) 200
Output/per day CM Fabric/meter cons Fabric/garment CM Trims 100.00 1.35 135.00 100.00 100.00 436.35 43.64 479.99
800
500
100 114.2857
Profit @ 10% PC
The scientific method for estimating CM (Cut and make) cost of a garment involve two steps as
1. First determine SAM of the garment (refer garment SAM calculation) and
2. Then multiply garment SAM with labor cost per minute. How to calculate the minute cost of the operator? Formula = (Monthly salary of the operators/Total minutes available in the month) Suppose Operator monthly salary is INR 5000.00 Total available capacity (in minute) = 26*8*60=12,480 minutes So, per minute cost = 5000/12480 = 0.4006 INR Formula for labor cost= SAM X Minute cost of the labor If Sewing SAM is 15 minutes then estimated make cost will be = 15*0.40=6 INR
And Cutting SAM is 2 minutes then estimated cutting cost will be = 2*0.40=0.8 INR So, Total estimated CM cost is (6.00+0.80)=6.8 INR
2. Then multiply garment SAM with labor cost per minute. How to calculate the minute cost of the operator? Formula = (Monthly salary of the operators/Total minutes available in the month) Suppose Operator monthly salary is INR 5000.00 Total available capacity (in minute) = 26*8*60=12,480 minutes So, per minute cost = 5000/12480 = 0.4006 INR Formula for labor cost= SAM X Minute cost of the labor If Sewing SAM is 15 minutes then estimated make cost will be = 15*0.40=6 INR
And Cutting SAM is 2 minutes then estimated cutting cost will be = 2*0.40=0.8 INR So, Total estimated CM cost is (6.00+0.80)=6.8 INR
efficiency % =
SMV and SAM:- The Smv is calculated based on the gsd data and is standard ineffective of factory conditions. SAM is calculated based on factory efficiency and vary depending on your factory conditions labor efficiency policy allowances etc. therefore your sam varies due to this.
Productivity can be expressed in many ways but mostly productivity is measured as labour productivity, machine productivity or value productivity. These three term can be defined asLabour productivity - Output per labour (direct +indirect) in a given time frame (in pieces) Machine productivity - Output per machine in a given time frame (in pieces) Value productivity - Total value of output in a given time frame.
smv -time required to stitch the garment(including m/c allowance/operator allowance)
sam=smv/costed effeciency
efficiency%=
achived minute(no. of garment producexsam of one garment) available minute(no of operator worksxtime of each operator)
480min/14min*no of operators=target@100%effeciency
480x12 30x480
40%
BASIC CAPACITY CALCULATIONS In the clothing industry, most companies still work to standard minutes, which is the calculated or measured standard time to produce a garment. A basic calculation may be as follows: 8 working hours per day = 480 minutes 10 operators per team Capacity = 4800 minutes per day Standard Minutes for T-shirt style a = 12 std min @ 100% efficiency = 4800/12 = 400 pieces per day However, it may be necessary to take into account the skills and efficiency of different teams, or the ability of a team to make different products. For instance, if a team normally make woven garments, to change to a knitted T-shirt means that they are less skilled at handling that item of clothing. If they can only achieve 75% efficiency, the output is only 300 pieces per day. The impact on the production plan is huge. Many readers will be used to volume manufacturing of widgets and know about the steady automation of their industries. The clothing industry is still very heavily dependent on human labour, despite increasing use of automated processes. Add to this the whims of the fashion market, which cause constant style changes (equivalent to the constant engineering changes that manufacturing engineers so hate), and you have huge difficulty in achieving efficiencies and optimising operator skills. If you can keep a team of operators making the same type of product as long as possible, production loss is minimised. The plan must also consider the
specialist support areas. Working back from the sewing plan, it is necessary to calculate where the loading will impact resources. The plan must then allow for post-sewing operations such as garment washing (where relevant), otherwise the sewing plan will be acceptable but WIP builds up in the other areas. Critical path analysis is a vital tool in this process if the plan moves, so must the priorities.
Characteristic of 100% Performance or Normal operator Fluid motions without hesitation No false starts or duplications Consistent, coordinated, effective rhythm No wasted actions or work Attention centered on the task How to get accurate rating? To improve accuracy in rating an operator, observer must Has knowledge of the operation and the specified method or standard operating procedures for that task. Concentrates on operator motions Is alert to fumbles, hesitations, and other lost motions- these are seldom or absent in 100% performance. Eliminates or ignores interruption or events not in the operators control. Avoids a corrupting bias when observing fast and slow operators in succession Knows that increasing the number of cycles observed increases accuracy
A slower is performance rate, which will produce fewer pieces per hour, is recorded as a percentage below 100%. A faster performance rate that produces more pieces per hour is recorded as greater than 100%. Characteristic of 100% Performance or Normal operator Fluid motions without hesitation No false starts or duplications Consistent, coordinated, effective rhythm No wasted actions or work Attention centered on the task How to get accurate rating? To improve accuracy in rating an operator, observer must Has knowledge of the operation and the specified method or standard operating procedures for that task. Concentrates on operator motions Is alert to fumbles, hesitations, and other lost motions- these are seldom or absent in 100% performance. Eliminates or ignores interruption or events not in the operators control. Avoids a corrupting bias when observing fast and slow operators in succession Knows that increasing the number of cycles observed increases accuracy
Time study tools: A stop watch Time study format One pen or pencil How to conduct Time Study?
Step 1: Preparation Ready with stationeries like time study format, stop watch (digital one) and pencil Select one operation for Time study Tell the operator that you are going measure time he/she taking to do the job. Observe the operation carefully and break down operation into elements. Fill the basic information in the time study format. Like machine category, guide or attachment used. Step 2: Time capturing
Table -1
Table-2
An operation cycle consists of material handling, positioning and aligning parts, sewing, trimming threads and tying and untying a bundle. So in the time study format, divide whole task into various elements according to the motion sequences of the operation. For example, in operation collar run stitch, task elements may be i) pick up panel to sew first seam, ii) turn collar to sew second seam, iii) turn collar to sew third seam iv) check work and dispose and v) waiting for next pieces. Step 1: Preparation Ready with stationeries like time study format, stop watch (digital one) and pencil Select one operation for Time study Tell the operator that you are going measure time he/she taking to do the job. Observe the operation carefully and break down operation into elements. Fill the basic information in the time study format. Like machine category, guide or attachment used. Step 2: Time capturing Now measure the time taken for completing each elements of the operation cycle by the operator. Time should be captured in seconds. Similarly, capture element timing for consecutive 5 operation cycles. During data capturing only note down reading (see following table-1) of the stop watch and later calculate element timing. If you found any abnormal time in any elements record time during time study and later discard that reading. Or you capture time for one more cycle. Abnormal time may be occurred due to bobbin change, thread break, power cut or quality issues. Table -1
From the Reading (R) calculate time taken for each element for all five cycles just by deducting previous Reading from elemental reading. Sum up times of five cycles for each element. Note, if you discard any reading than in that case no. of cycles will be four. Calculate average element times. This average time is called basic time. (in the following table-2 it is noted as average time) Table-2
To convert basic time to normal you have to multiply it with operator performance rating. Here for example, rating has been taken 100%. Now you have add allowances for machine allowances, fatigue and personal needs etc. Add machine allowance only to those elements where machine is running and fatigue and personal needs to all elements. Now we got standard time for each element in seconds. Sum up all elemental time and convert seconds into minutes. This is standard minutes or SAM.
Assume that Total production in day =1200 pieces Total labor (operator +helpers) = 37 Working time = 600 minutes (10 hours)
differ from one garment to another. Calculation of labor efficiency is shown below. Consider above data. SAM (Standard allowed minutes) of the garment = 8.9 Minutes produced by each labor =(32.4 pieces X 8.9) = 288 minutes Available minutes was 600 So, Labor efficiency = (Produced minutes/available minutes) = (288/600*100)% = 48%
b) How many operators are working in the line? c) How many hours line will work in a day? d) Average Line efficiency level? e) Total break time for lunch and tea. Formula for production estimation is
Daily production = Total man minutes available in a day/SAM * Average Line efficiency Total available man-minutes =Total no. of operators X Working hours in a day X 60
So, Total available man minutes = 30 X (8 X 60 45) = 13050 minutes Daily estimated production = 13050 /20 * 50% = 326 pieces
Machine break down Imbalance line (WIP control) Continuous feeding to the line Quality problems Individual operator performance level. Operator absenteeism
Suppose, SAM of the garment is 20 minutes, 30 operators line, works 8 hours shift day. Line works at average 50% efficiency. Operators get total 45 minutes for lunch and tea break. So, Total available man minutes = 30 X (8 X 60 45) = 13050 minutes Daily estimated production = 13050 /20 * 50% = 326 pieces You can expect above output from that line if everything is gone well. You can see the production of a line is directly proportional to the line efficiency; no. of operators and working hours. And production is reverse proportional to the garment SAM. If efficiency of a line increases you can expect higher production. Similarly if SAM of style reduces at that also you Factors that hamper production: Any one of the following can reduce production of assembly line. So to get estimated output, you have to take on the following areas. i. ii. iii. iv. v. vi. Machine break down Imbalance line (WIP control) Continuous feeding to the line Quality problems Individual operator performance level. Operator absenteeism
A sequence of operations is involved in making a garment. In bulk garment production, generally a team works in an assembly line (Progressive Bundle system) and each operator do one operation and give it other operator to do next operation. In this way garment reached to end of the line as a completed garment. In the assembly line after some time of the line setting, it is found that at some places in the line, work is started to pile up and few operators sit idle due to unavailability of work.
When this situation happens in the line it is called an imbalanced line. Normally it happens due to two main reasons a) variation in work content (time needed to do an operation) in different operations and b) operators performance level. To meet the production target, maintaining smooth work flow in the line is very important. So it is very important to know basics of quick line balancing. How to balance an imbalanced line has been explained in the following. The main job in line balancing is to eliminate or reduce WIP (work in process) at bottleneck operations. To do that you have to know which operations are bottleneck in the line. Through capacity study and target setting you will find existing bottlenecks in the line. Tools required: i) Stop watch ii) Spread sheet or Calculator Step 1: Capacity study: List down all operations (with operator name) as per operation sequence in a paper. Using stop watch cycle time (time study) for each operation for five consecutive cycles. With average cycle time calculate hourly capacity of the operators. (i.e. operation cycle time 30 seconds and total allowances is 20% then capacity is 100 pieces per hour). Draw a line graph with per hour capacity data. Step 2: Target setting: With the above capacity data set your target output per hour from one line. Generally it is calculated using following formula (Target per hour= Total no of operators X 60 /garment SAM). Check current hourly operator production report. Draw a straight line with target output data on the line graph. Step 3: Identification of bottleneck areas: Now go to the capacity study table and compare each operators capacity with the target capacity. Each individual operator whose capacity is less than the target output is bottleneck operation for the line. It is impossible to improve imbalanced lines output without improving output Step 4: Eliminate bottlenecks from the line: Now to eliminate bottleneck areas use following methods which suites best to your situation but dont jump without trying initial steps. i. Club operations where possible. Where there is higher capacity than the target output, give that operator another operation with less work content. Considering machine type and sewing thread colours. ii. Shuffle operators. Operations that have low work content use low performer there. And where work content is higher use high performers. iii. Reduce cycle time using work aids and attachments. To assist the operator in handling parts during sewing, positioning cutting and disposing finished task, work aids, guides or attachment can be used. Think of that if possible provide operator with aids. It will reduce operation cycle time. iv. Improve workstation layout and improve methods. Most important area for improving output from a particular operation is using best workstation layout and best method of work. There is always a chance that though improving method of bottleneck operations you can do line balancing.
v. Add more operators at bottleneck operations. Adding one additional machine in easy task than others. Before adding one more machine compare the cost-benefits of putting additional machine into the line. It can be simple compared by estimating machine productivity in both cases. vi. Do extra work at bottleneck operations. At lunch break and Tea break when each operator of the line goes for break, bottleneck operator can continue work to feed next to his operator. Later he can take break. At the end of the day tell this operator to work for one hour extra to reduce the WIP. Important things to keep in mind: basis and check output of each operator. Once you have eliminated one i. Conduct Time Study hourly bottleneck, you will find a new bottleneck operation. Follow the same methodology to improve line balancing.
Net available time = 4500 minutes / shift (10 operators total man-minutes) Customer demand = 500 pieces / shift Takt time = (4500500) = 9 minutes / piece Important things to be noted that, Takt time cant be measured with a stop watch. Takt time is not the time it takes to perform a task. Takt time is only reduced or increased by changes in production demand or net available time to work. How Takt is used to in Garment Production? Takt time is a very important tool for Lean Line or One Piece Flow Production.
Net available time = 4500 minutes / shift (10 operators total man-minutes) Customer demand = 500 pieces / shift Takt time = (4500500) = 9 minutes / piece Important things to be noted that, Takt time cant be measured with a stop watch. Takt time is not the time it takes to perform a task. Takt time is only reduced or increased by changes in production demand or net available time to work. How Takt is usedsays, it is the demand of customer or simply demand of following processes. To set a As the definition to in Garment Production? production assembly line takt time is taken as a base to determine work content to be given to each Taktexample, demand from production lineLine or One Piece FlowIn one hour you had only 3600 seconds. So For time is a very important tool for Lean is 60 pieces per hour. Production. takt have fordistribute all be 60 seconds/piecesoperators. All operations will have different work content. So You time to the line will operations within 20 (3600 seconds/60 pieces). So, you know that your target of to equalise work content each operator will get work of about 60 seconds work content. For this, few