CM Calculation(1)

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MHR= Total available hours= (assume the MHR to be Rs. 100) SAM of pants= Target per day/ per macine / 8 hrs shift (@ 100% effi Target per day/ per macine / 8 hrs shift (@ 50% effic (Note - for order qty of 6000 units) Target per day/ per macine / 8 hrs shift (@ 30% effic (Note - for order qty of 6000 units) CM (@ 50 % efficiency) = CM (@ 30 % efficiency) = Vishwanath Phone number (09880953186)

Transcript of CM Calculation(1)

Page 1: CM Calculation(1)

MHR=

Total available hours=

(assume the MHR to be Rs. 100)

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) =

Vishwanath Phone number (09880953186)

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Factory Expenses per day (including depreciation)Total available hours

(Number of machines X normal working hours ie 8 hrs.) + (OT machines X OT hours)

36 mins

480 mins / SAM of pants13.33

6.67

4

(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

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1000

800 1.25500 2

Output/per day 800 500

CM 100 114.2857Fabric/meter 100.00cons 1.35Fabric/garment 135.00CM 100.00Trims 100.00

436.35

Profit @ 10% 43.64PC 479.99

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Garment CM cost estimation using SAM or SMV

The scientific method for estimating CM (Cut and make) cost of a garment involve two steps as

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

In the clothing manufacturing, supplier gives final manufacturing cost to buyer prior to order confirmation. For that factory prepares cost sheet estimating costs in different heads. Cost heads like Fabric, Trims and Packing materials, Labor cost and Overheads.

At this stage, supplier only get one sample of the garment and specification of fabric and trims for the reference. For raw material cost suppliers directly take price quote from fabric and trim suppliers. For labor cost it is very important to estimate as near as it will be during actual production.

1. First determine SAM of the garment (refer garment SAM calculation) and 

2. Then multiply garment SAM with labor cost per minute.

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How to calculate SAM of a garment?

Method 2 - Through Time Study:

SAM or Standard Allowed Minute is used to measure task or work content of a garment. This term is widely used by industrial engineers and production people in the garment manufacturing industries. For the estimation of cost of making a garment SAM value plays a very important role. In past scientists and apparel technicians did research on how much time to be allowed to do a job when one follows standard method during doing the job. According to the research study minute value has been defined for each movement needed to accomplish a job. Synthetic data is available for each movements.

General Sewing Data (GSD) has defined set of codes for motion data for SAM calculation. There is also  other methods through which one can calculate SAM of a garment with out using synthetic data or GSD. Both method has been explained in the following.Method 1- Using synthetic Data:

In this method 'predetermined time standard' (PTS) code are used to establish 'Standard Time' of a garment or other sewing products. Step 1: Select one operation for which you want to calculate SAM.

Step 2: Study the motions of that operation. Stand by side of an operator (experienced one) and see the operator how he is doing it. Note all movement used by the operator in doing one complete cycle of work. See carefully again and recheck your note if all movement/motion are captured and correct. (for example motions are like - pick up parts one hand or two hand, align part on table or machine foot, realign plies, etc.)

Step 3: List down all motion sequentially. Refer the synthetic data for TMU (Time measuring unit) values. For synthetic data you can refer GSD (without licence use of GSD code prohibited but for personal use and study one can refer GSD code and TMU values) or Sewing Performance Data table (SPD). Now you got TMU value for one operation (for example say it is 400 TMU). Convert total TMU into minutes (1 TMU=0.0006 minute). This is called as Basic Time in minutes. In this example it is 0.24 minutes.

Step 4: Standard allowed minutes (SAM) = (Basic minute + Bundle allowances + machine and personal allowances). Add bundle allowances (10%) and machine and personal allowances (20%) to basic time. Now you got Standard Minute value (SMV) or SAM. SAM= (0.24+0.024+0.048) = 0.31 minutes.

Step 1: Select one operation for which you want to calculate SAM.

Step 2: Take one stop watch. Stand by side of the operator. Capture cycle time for that operation. (cycle time – total time taken to do all works needed to complete one operation, i.e. time from pick up part of first piece to next pick up of the next piece). Do time study for consecutive five cycles. Discard if found abnormal time in any cycle. Calculate average of the 5 cycles. Time you got from time study is called cycle time. To convert this cycle time into basic time you have to multiply cycle time with operator performance rating. [Basic Time = Cycle Time X performance Rating]

Step 3: Performance rating. Now you have to rate the operator at what performance level he was doing the job seeing his movement and work speed. Suppose that operator performance rating is 80%. Suppose cycle time is 0.60 minutes. Basic time = (0.60 X 80%) = 0.48 minutes

Step 4: Standard allowed minutes (SAM) = (Basic minute + Bundle allowances + machine and personal allowances). Add bundle allowances (10%) and machine and personal allowances (20%) to basic time. Now you got Standard Minute value (SMV) or SAM. SAM= (0.48+0.048+0.096) = 0.624 minutes.

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efficiency % = total output x SMVTotal time(480min) x no.of opertors

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

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 as-

Labour productivity - Output per labour (direct +indirect) in a given time frame (in pieces)

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efficiency%= achived minute(no. of garment producexsam of one garment)

available minute(no of operator worksxtime of each operator)

No. of mcs = sam X 1.3

for polo-14min 480min/14min*no of operators=target@100%effeciency

14/50%=28min

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480x12

30x480 40%

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BASIC CAPACITYCALCULATIONSIn the clothing industry, most companies still work to standard minutes, which is the calculated ormeasured standard time to produce agarment. A basic calculation may beas follows: 8 working hours per day = 480minutes 10 operators per team Capacity = 4800 minutes per day Standard Minutes for T-shirt stylea = 12 std min @ 100% efficiency =4800/12 = 400 pieces per dayHowever, it may be necessary totake into account the skills and efficiency of different teams, or theability of a team to make differentproducts. For instance, if a team normally make woven garments, tochange to a knitted T-shirt means thatthey are less skilled at handling thatitem of clothing. If they can onlyachieve 75% efficiency, the output isonly 300 pieces per day. The impacton 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 veryheavily dependent on human labour,despite increasing use of automatedprocesses. Add to this the whims ofthe fashion market, which cause constant style changes (equivalent tothe constant engineering changes thatmanufacturing engineers so hate),and you have huge difficulty inachieving efficiencies and optimisingoperator skills. If you can keep a teamof operators making the same type of product as long as possible, production loss is minimised.The plan must also consider thespecialist support areas. Workingback from the sewing plan, it is

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necessary to calculate where the loading will impact resources. Theplan must then allow for post-sewingoperations such as garment washing(where relevant), otherwise thesewing plan will be acceptable butWIP builds up in the other areas.Critical path analysis is a vital tool inthis process – if the plan moves, somust the priorities.

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The Concept of Operator's Performance Rating

What is 100% performance or Normal Performance?

Characteristic of 100% Performance or Normal operatorFluid motions without hesitationNo false starts or duplicationsConsistent, coordinated, effective rhythmNo wasted actions or workAttention centered on the taskHow 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 operator’s control.Avoids a corrupting bias when observing fast and slow operators in successionKnows that increasing the number of cycles observed increases accuracy

Definition of Performance Rating:

Rating is a subjective comparison of any condition or activity to a benchmark, based upon our experience. While the mechanics of time study record the time a task did take, applying a rating will determine the time a task should take.

The concept of 100% performance is a critical element of time study and performance measures. Normal performance is the rate of output which qualified workers will achieves without over-exertion over the working day sifts provided they know and adhere to the specified method and provided they are motivated to apply themselves to the work. This performance is denoted as 100% on standard rating and performance scales.

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%.

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How to do Time Study for garment operations?Definition of Time Study:

A stop watchTime study format

One pen or pencil

How to conduct Time Study?

Step 1: PreparationReady 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

Time study is a method of measuring work for recording the times of performing a certain specific task or its elements carried out under specified conditions. An operator does same operation (task) throughout the day. Time study help to define how much time is necessary for an operator to carry out the task at a defined rate of performance.Time study tools:

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.

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.

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Table-2

Step 4: Calculation of Standard time

Step 3: Calculation of Basic time

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)

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. 

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How to measure labor productivity?Definition

Most simply, productivity is the ratio between output and inputs. 

Within a factory, industrial engineers or factory managers and line supervisors measure the number of garments produced by a line of sewing machine operators in a specific time frame. Generally factory works 10 to 12 hours a day. Total production (output pieces) of a line and total labor involved in producing those   pieces is required to calculate labor productivity. See following example, Assume that 

   Total production in day =1200 pieces

   Total labor (operator +helpers) = 37

   Working time = 600 minutes  (10 hours)

So, Labor productivity per 10 hours is =Total pieces produced/ total labor input = (1200/37) Pieces =32.4 pieces.

Another productivity measure is labor efficiency, which is a comparison of the time spent working productively to the total time spent at work. These metrics are appropriate for analyzing and comparing the productivity of a particular production line or factory that turns out specific apparel products. However, comparing productivity levels across products or operating lines can be difficult 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%To compare productivity estimates across products, factories, or even industries, economists define labor productivity as the production value added that each worker generates. In this case, labor productivity equals the value of production divided by labor input. The value of production is generally measured as value added, equal to the gross value of sales minus the value of purchased inputs such as fabric, trim, and energy. Labor input is measured by total work hours. Labor productivity can thus be estimated at the national, aggregate level and for specific industries in an economy.  

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How to estimate garment production?

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

One of the visitors asked this question that how to estimate production of a style from the line.  It is a very important question, because it is the basic knowledge about production management and each people who are working in production must know how estimated production is calculated.

Following article will clarify you the calculation procedure. 

Production means total number of garment pieces produced by operators in a line/batch at a given time (for example: 8 hours day time). Production is also termed as daily output. To estimate production following information is necessary.

a)    Standard allowed minutes (SAM) of the garment. It means how much time is required to make one complete garment including allowances. 

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.

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.

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 can expect higher output.

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.              Machine break down

ii.            Imbalance line (WIP control)

iii.           Continuous feeding to the line

iv.           Quality problems

v.            Individual operator performance level.

vi.           Operator absenteeism

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How to Balance a Traditional Sewing line?

Tools required:

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) operator’s 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.

i)                     Stop watchii)                   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 operator’s 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 line’s output without improving output of the bottleneck operations. A bottleneck operation is like a weak link chain.

Step 4: Eliminate bottlenecks from the line: Now to eliminate bottleneck areas use following methods which suites best to your situation but don’t 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.

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Important things to keep in mind:

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.

i.                     Conduct Time Study hourly basis and check output of each operator. Once you have eliminated one bottleneck, you will find a new bottleneck operation. Follow the same methodology to improve line balancing.

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Use of Takt Time in Apparel IndustryWhat is Takt Time?

Net available time = 4500 minutes / shift (10 operators total man-minutes)

How Takt is used to in Garment Production?

Takt time is a very important tool for Lean Line or One Piece Flow Production.

Takt time is the allowable times to produce one product at the rate of customers’ demand. This is NOT the same as cycle time, which is the normal time to complete an operation on a product (which should be less than or equal to TAKT time).

Takt time is the calculated pace of production based on the average speed at which the customer is buying a product or service. The formula is net available time to produce per time period divided by customer demand per time period. For example when,

Customer demand = 500 pieces / shift Takt time = (4500÷500) = 9 minutes / pieceImportant things to be noted that, Takt time can’t 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. As the definition says, it is the demand of customer or simply demand of following processes. To set a production assembly line takt time is taken as a base to determine work content to be given to each operator in the line. For example, demand from production line is 60 pieces per hour. In one hour you had only 3600 seconds. So takt time for the line will be 60 seconds/pieces (3600 seconds/60 pieces). So, you know that your target of production. According to this target and garment work content (suppose men’s full sleeve shirt) you have to determine how many operator should be taken to set the line. Let’s assume SAM of the shirt is 20 minutes or You have to distribute all operations within 20 operators. All operations will have different work content. So to equalise work content each operator will get work of about 60 seconds work content. For this, few operators will do multiple operations with low work content.