Yaa Of Import Costing Tips For Garments

Important Costing Tips for Garments
Md. Sumon Miah
Lecturer
Department of Textile Engineering
Green University of People's Republic of Bangladesh

Cost as well as costing
Cost typically tin dismiss live defined as’ the economical value placed upon the resources consumed to brand a product.

Costing is the physical care for of estimating as well as thus determining the full cost of producing a garment, including the cost of materials, labour as well as shipping equally good equally the full general expenses of the operating the delineate of piece of occupation organisation .

Costing

In society to arrive at perfect garment costing, i must know virtually all the activities including purchase of fabrics, sewing, packing, transport, overheads, etc. as well as too virtually their costs, procedures, advantages as well as peril factors. Merchandiser must live aware that at that spot are ever fluctuations inward the costs of raw materials as well as accessories, charges of knitting, processing, finishing, sewing as well as packing, charges of carry as well as conveyance. The method of making costing volition vary from way to style, equally at that spot are many dissimilar styles inward garments.

Purposes for doing costing.
Merchandiser has to own got thorough agreement of costing. There are several reasons where cost plays the vital role. Merchandiser does the costing mainly for ii purposes.

• Pricing of the garment: If manufacturer selling the garments direct to the cease consumers thus it’s really of import to guess the cost really accurately. Pricing of the garment tin dismiss live done past times manufacturing cost added alongside estimated mark-up or net turn a profit % to it. 

• Order acceptance: If manufacturer is exporting the garment, the costing is base of operations of the business. On the footing of cost of manufacturing including wages, operating expenses as well as shipping as well as freight charges, as well as net turn a profit margin of company, merchandiser claims the cost of unit of measurement garment. With this merchandiser negotiates cost alongside buyer as well as decides whether to own got the society or not.

Points should live considered earlier costing

• Fabrication: We must select clear persuasion regarding the fabrication earlier taking the society from the buyer / buying house. After then, you lot must ensure that, you lot own got rigid origin of the followings fabric.

• Size spec: Make certain that, you lot own got got the correct/latest size spec alongside the measuring of all the sizes, which volition live ordered. Many times nosotros come across that, PO sheet has come upward alongside novel bigger size which was non during the costing. 

• Fabric color: Try to know that, how many colors the way has & too endeavour to know that, color wise society qty ratio.

• Qty: Take data regarding approximate society qty. 

• Shipment date: Asked buyer for the shipment appointment & banking concern check alongside your production subdivision that, they own got plenty infinite for shipped out the followings qty inside the require ship appointment Or say your possible date. 

• Test requirement: Let you lot know that, the society has whatever examination or not. 

• GSP: Please confirm that, buyer has demand the GSP or not. 

• L/c payments term: Take a previous l/c re-create from them & utter over alongside your commercial people regarding all the terms along alongside payment terms. 

• Inspection: Please larn a confirmation from the buyer that, who volition inspected the goods. If 3rd political party thus who volition pay their charges.

The full general formula for costing
Costing = Commercial cost ( Fabric cost + Fabric finishing cost+ trimmings/ accessories cost) + Additional cost (3-15% of commercial cost) + CM cost + net turn a profit (Normally 20% of CM cost).

Note:

1. 3% additional is taken when L/C payment terms is equally sight.
2. 7.5 % additional of commercial cost is taken when L/C payment is sixty days deferred.
3. 15 % additional of full commercial cost is taken when L/C payment is ninety days deferred.

Fabric Cost
Fabric cost = Fabric consumption inward unit of measurement (yds, kgs ) × cost / each unit.

Calculating the next stuff consumption as well as making each costing individuality if garments own got

1. Body stuff
2. Neck record
3. Rib
4. Applique & others stuff

Estimate wastage :

• Generally 9% wastage on full stuff cost is taken for knit items. 

• If it is alongside alone front end breast impress thus 9% is ok but if alongside all over/rotary print, alongside heavy launder etc thus you lot must growth the wastage. 

• Moreover, if the garments alongside pigments dye thus add together minimum 25 to 30% wastage because inward this paint dye garments turn down pct is really high.

Fabric finishing cost

• Print: If the garments own got impress thus brand certain that, you lot own got a clear fine art piece of occupation of it. Check that at that spot clearly mentioned the impress quality, dimension & placement. Send the fine art piece of occupation to your printers for a amend cost idea. Also allow you lot know from your printers regarding the difficulties of the followings print. Many times nosotros flora that, buyer has asked for thus many type/kind prints inward same torso which is thus hard for production. Such as, if buyer asked for Flock + discharge & foil impress inward at the same artwork thus it is non possible for production. 

• Embroidery: Discuss alongside your embroidery supplier regarding the embroidery & select cost quotation. 

• Wash: Take the launder cost quotation from washing factory. 

• Test: Confirm the charges of examination from the testing company.

Accessories & trims
Please endeavour to Calculate the cost of accessories individually it volition cut back the pct of mistake. Please abide by below the listing of unopen to accessories detail

• Sewing thread: Confirm that, which thread you lot demand 100% cotton, spun polyester or filaments. Then ensure the count 50/2 or 40/2 or whatever other denier. Its may vary on fabrications. Regarding the paint dye garments nosotros unremarkably used cotton fiber greyness color cotton fiber thread. 

• Labels: Take the quotation from your supplier for the entire woven & satin/paper label. 

• Tape: Calculate the consumption of record if it has, such equally Velvet, herringbone or canvass etc. 

• Elastic: Make certain which denier & width it need. Then select the quotation from supplier. 

• Zipper: If the garments own got zippers thus confirm that, from where you lot volition purchase that. Many fourth dimension the logo zipper demand to import the mold from abroad. Make certain the zipper quality, such metal, nylon or vislon zipper. Check the zipper measuring from your production subdivision as well as larn prices from your zipper supplier. 

• Button: Take the push cost from your supplier if the garments own got it. 

• Inter lining: Calculate the inter lignin cost if the garments need. 

• Patch or badge: Calculate the acre or badge or others metallic detail if the garments have. 

• Finishing item: Tissue paper, silica gel, hang tag, barcode sticker, dorsum board, h/tag string, scotch tape, safety tag calculate the prices of these item. 

• Hanger: Take the quotation of hanger. 

• Poly: Make the measuring of poly. Confirm the character & alongside adhesive or not. 

• Carton: Find out the carton measuring & select the prices from carton supplier along alongside top, bottom & divider. 

• Gum tape: Confirm the mucilage record character that, whether it is normal transparent or alongside whatever logo. Then select the cost quotation. 

• PP belt: Take the cost quotation of pp belt if buyer asked it. 

• Carton sticker: Take quotation for sticker.

CM (Cost of Making)
Normally at acquaint (after starting the novel salary scale) inward People's Republic of Bangladesh nosotros calculate the CM of whatever detail regard the overhead sewing machine cost 1200 tk to 1400 tk/day that agency $15.38 to $17.95/per day.

Above is for a non-compliance factory. For a compliance manufactory the per 24-hour interval machine cost volition live 1800 tk to 2100 tk ( $23.08 to $26.92)

Example : If an items arrive at 1600 pcs per 24-hour interval using 25 machines thus what would live the CM cost ???

Solution:

CM cost = Overhead machine cost X require machine / arrive at quantity X 12
= (1800 X 25 / 1600 )X 12
= 337.5 Taka
= $ 337.5/78
= $ 4.32 /dozen

Calculate the CM afterward give-and-take alongside your production department. It’s vary depends on require machine qty & output qty.

To abide by out the CM of a detail you lot must demand the next 06 (six) data at first, equally listed below

• Monthly full expenditure of your manufactory alongside manufactory rent, commercial cost, electricity bill, H2O bill, transportation, repairing, worker & stuff reward etc. (8hrs/day) inward bangla taka. Suppose-50,00,000/tk 

• Qty of running Machine of your manufactory of the next calendar month (which full expenditure nosotros own got regard here).Suppose- 100 machine 

• Number of machine to consummate the layout for the next Items (which CM nosotros are calculating). Suppose - 25 machines . 

• Production target/capacity of the next items, per hr from the existing layout, excluding alteration & reject. Suppose 200 pcs per hour. 

• Total working 24-hour interval of the followings month,(though the houserent,commercial expenses,machine overhauling & another cost stay same)Suppose- 26 days. 

• If you lot desire to calculate the CM inward US$ (dollar) thus pls input acquaint dollar conversation charge per unit of measurement BDTk.

Suppose $1 = 78 tk.

COST OF MAKING (CM)
=(SAM of the garment * Minute cost of the labor)/Line efficiency (%)

OR

= Overhead machine cost X require machine / arrive at quantity

= [{Monthly full expenditure of the next manufactory / (26 X Qty of running Machine of your manufactory of the next month)}] X (Number of machine to consummate the layout) / arrive at quantity per day.

= [{50,00,000 / (26 X 100 )} X 25] / {(200) X 8}] X 12
= [{192307.7 / (100) X (25) } / 1600] X 12
= (48,076.9 / 1600) X 12
= 30.048 X 12
= 360.58 Taka
= $ 360.58/ 78
= $ 4.62/dozen

This is the making cost (12 pcs) garments.

Example of garment costing
The illustration of garment cost is given past times assuming the next dimensions for polo cervix T-shirt, no. of pieces = 4000, salary of the operator =6240 tk/month=80$/month, no. of working days = 26, delineate efficiency considered= 50%, sewing SAM= xv min., Cutting SAM= vii min. 1$ =78 taka, Chest = sixty cm, Length (HSP to waist) = 75 cm, Sleeve length = 25 cm. Fabric used is 2/60s 100% cotton fiber S/J fabric. GSM is 180

Solution

The stuff consumption tin dismiss live calculated equally

          {(B.L +S.L + 4-10 cm) ×( ½ chest+ 2-4 cm) ×2}×GSM
= …………………………………………………………………. + Wastage 10%
                                           10000000


              {(75+25 + 4) ×( 60+ 2) ×2}×180
= ………………………………………………… + Wastage 10%
                            10000000

= 0.232 + Wastage 10%
=0.255 kg/dozen

CMT (cost of making alongside trimming) charges may live calculated equally follows

Labour cost per minute = (Monthly salary of an operators/Total minutes available inward the calendar month
= 6240/ (26×8×60)
= 0.5 tk.

Sewing cost = (SAM of the garment * Minute cost of the labour)/Line eff%
= 15*0.5 / 50%
= xv tk.

Cutting cost = (SAM of cutting * Minute cost of the labour)/cutting efficiency (%)
= 7*0.5 / 50%
= vii tk.

Now trimming cost is considered equally iii tk. but it depends how number of operators are at that spot for trimming

CMT= sewing cost + cutting cost + trimming
= 15+ 7+ iii
= 25 tk.

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