Part II- Garment Costing

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EiTEX GarmentCostingStudyMaterial PartII

BahirDarUniversity IVFashionDesign 1

I.ApparelManufacturing

1.2Production

Operations

in

Apparel

Manufacturing:

The

following

are

the

operations

involvedintheproductionofgarmentsinanapparelmanufacturingfirm.

Patterndevelopment,grading,layplanning

Stockroomfabricandtrimmings

Cuttingspreading,cuttingandbundling

Sewingprefabrication,assembly,finishing

Pressingironing,pressing,steaming

Inspectioninitial,finalandaudit

Warehousepacking,shipping

ProcessSequenceofApparelManufacturing

1.2.1TypesofGarmentProductionSystems:

Theway

in

which

the

input

resources

of

the

production

(such

as

men,

materials,

machines

and

materialhandling)isorganizedandarrangedisknownasproductionsystem.Sofar,therearefive

typesofproductionsystemsusedinapparelindustry:

Technologyenabled Manufacturing Systems: Following are the different types of garment

productionsystemsusedinthegarmentindustry.

1.StraightLineSystem2.ConventionalBundleSystem3.ProgressiveBundleSystem

4.UnitProductionSystem5.ModularManufacturingSystem



1.StraightLineSystem

Thiswas

avery

successful

and

popular

mass

production

system

in

the

50s

but

not

so

today.

Here,theproductionunitissinglegarment,assembledinsequenceandpassesfromoperation

to operation. The layout planned and chutes are custom made with operator seated

behind/opposite tothenextone. Workfedbygravitychutesorpushingalongbench,conveyor

canbeused.Alloperations takesametimetocomplete.Eachoperatormakessameamountof

money determined by output at end of the line. The pictures shown here below show the

different types of layout for this system.

AdvantagesofStraightLineSystem:

Lowlevelofworkinprogressisaccumulated.

Throughputtimecanbeaslittleasthelabourcontent.

Nobacktrackingofmaterialadlessmaterialhandlingtime

Smallspaceisrequiredforeachoperator


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Shadingcontrolisextremelyeasy

Disadvantages:

Evenaminorproductchangecannotbeaccommodated

Qualityproblemseasilyaccumulate.

Machinebreakdowncanbecriticalandtroublesome.

specializationandworkplaceengineeringisdifficult.

Preproductionplanningskillisessential.

Thelineispacedbytheslowestoperation.

Applications:

Production

of

simple

garments

e.g.

underwear

Productioncontinuesforlengthyperiods,say8weeksormore

2.ConventionalBundleSystem

Itisacommonlyusedsystemofmassproduction inthe60s.Theproductionunitisabundleof

cutparts tobeassembled into certainnumberofgarments. Specificquantityofparts in the

bundleisdeterminedbynumberoffabricpliesandweightofbundle.

Theoperatorreceivesbundlefromcentralstore,untiesbundle,performthesewing,cutsticket

andretiesbundle.Shethenreturnsbundlebacktostorewhereitwaitsuntilthenextoperation

and the process repeats until the garment is completed. Operators of specialised skills are

independentlyworkingatownpaceandpaidbypiecerates.

Advantages:

Absenteeismdoesnotcausemanyproblems.

Preproductionplanningisnotcritical.

Operatorsareencouragedtoworkasfastasshecan.

Thesystemrewardsahighindividualproductivity.

Uniformlevelofqualitycanbeachieved.

Applications:

Ordersinlowtomediumvolume.

Conventionalstyleofproductionwithlessmanagerialskills

Disadvantages:

VeryhighlevelofWIP(workinprogress)isrequired.

AstorageareaisneededtoholdWIPthatisnoteasytocontrol.



Throughputtimeislengtheningtoamonthormore.

Materialhandlingtimeisspentsubstantially

3.ProgressiveBundleSystem

Thiswaswidelyusedsystem inthe70s. Theengineeredoperationsare laidout insequence.

Eachoperatordoesherbundleandpassesitdirectlytothenextoperators,asthegarmentsare

graduallyassembledastheyflowsequentiallyinbundleform.Ifbundletruck/clumptruckused,

bundle tying isoftennot required. Interprocessbundles are temporarily stored inbetween


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neighboured operations. The amountofmachinery foreach operation isdeterminedby the

outputrequired.



Advantages:

Thelineiseasiertobalanceandcontrol.

Uniform

quality

can

be

ensured

by

in

process

control.

Semiskilledlabourrequireslesstrainingtimeandcost.

Individualperformancescanbemonitoredbyincentives.

Applications:

Basicgarmentswithlittlechange.

Lengthyproductionrunsonthesamestyle

4.UnitProductionSystem

Thiswasamajoradvancemade in the80swhencomputerswereused toplan,controland

directtheworkflowthroughthesystem.

Theproductionunit isasinglegarment.Allpartsofagarmentunitareclampedbyacarrier

which automatically transports from station to station along the overhead transportation

system.Theworkstationsaresodesigned thatthecomponentsarepresentedattheearliest

positionforhandling.Manyoperationscanbeperformedwithoutremovingtheworkfromthe

carrier.After sewing,disposal is automatic as theoperatorpresses abutton and the carrier

progressestothenextoperationaccordingtoapredeterminedsequence.

Disadvantages:

Highinvestmentonmachinecost.

Shortrunproductionisnotadaptable.

HighlevelofWIPextendsthroughput

time.

Complicatedmanagementskillis

required.


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ATypicalLayoutofamodularmanufacturingsystem

Parameters ProgressiveBundleSystem(PBS) UnitProductionSystem(UPS)

Transportation Manualtransportation,manytimeshelper

arehiredforthisbundletransportationjob.

Operatorsstoptheirworktofetchbundles.

Less effective in terms of production

management.Resultedlongresponsetime.

In this system an automatedmechanical

system carries pieces to each work

stations.

Easier pick up and dispose at eachwork

station.Resultedquickresponsetime

Through put

time

Compare toUPS, throughput time longer

inPBS.Howmuch longwilldependonthe

bundle

size

and

no.

of

bundles

kept

in

betweentwooperators.

Throughput time inUPS is less compare

toPBS.Butitisnottheminimumtimeasin

this

system

there

is

WIP

in

between

two

operators.

Direct Labour

content

Direct labour content is high because

usuallyoperatordoes tyinganduntyingof

bundles, positioning components, pulling

the bundle ticket and handling of work

pieces.

Direct labour content is less than PBS

because an operator only sews the

garment part rather than other tasks. In

thissystemgarmentpartsareheldby the

over head hanger, so less handling of



garmentcomponents.

WIPlevel

In

PBS

generally

operators

are

asked

to

sew as much pieces as they can without

considering back and front operators. This

resultedpilingupofworkintheoperations

withhigherworkcontent.

Less

WIP

in

between

operators.

As

workstation has limit of holding no. of

hangers. Also after completion of

operation hangers are transported to the

nextoperationautomatically.

Cuttingwork

requirement

AsaresultofHighWorkInProcess(WIP)is

requiredbysewingsection,cuttingsections

arerequiredtoperform6070%morethan

actualproduction

can

handle.

LowerWIPresults in lesscuttingworks.A

balanced flow of material established in

betweencuttingandsewingline.

InventoryLevel Due highWIP and higher cutting, fabrics

andtrimsneedtostockinadvance

Lessinventoryforfabricandtrims.

Excesslabour

requirement

Usually in PBS needs more overtime

works,repairworkduetosomeunfinished

operations.

PlantwithUPSsystemneedslessovertime

as planning is easy in thismanufacturing

system.

LayoutofaModularManufacturingsystem


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BahirDar

University

IV

Fashion

Design

17

7.FlowChart:Processflowchartisagraphicaltoolthatshowsthemajorstepsinprocess.Flow

chartsare

useful

tool

for

examining

how

various

steps

are

related

to

each

other.

By

studying

this chart individualsand teams canoftenuncoverpotential sourcesof troubleand identify

steps to be taken to improve ormake it errorproof a process. The process flow chart for

cuttingprocessingarmentmanufactureisgiveninthefigureherebelow.


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University

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Fashion

Design

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Quality:Qualityisconformancetospecificationsfromthesupplierpointofviewandfitnessfor

use

from

the

customer

point

of

view.

There

are

a

number

of

factors

on

which

quality

fitness

of

garment industry isbasedsuchasPerformance,Reliability,Durability,VisualandPerceived

qualityofthegarment.Qualityneedstobedefinedintermsofaparticularframeworkofcost.

Qualityrelatedcostscanbeashighas25%ofsales.Onefourthofthepeopleemployeddonot

produce but redo and reinspect& reredo.Quality costs are greater than gross profit. In

worldclasscompaniesthesecostscanbebroughtdownto2.5%.Thefigurebelowshowsboth

thevisibleandinvisiblecostsofquality.

The ASQC Quality Cost Committee (5) recommends breaking down quality costs into the

followingfourareas.

1.PreventionCost: Thecostassociatedwithpersonnelengaged indesigning, implementing

and maintaining the quality system. Maintaining the quality system includes auditing the

system.


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Fashion

Design

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2. Appraisal Costs: The costs associated with the measuring, evaluating or auditing of

products,componentsandpurchasedmaterialstoassureconformancewithqualitystandards

andperformancerequirements.

3. Internal Failure Cost: The costs associated with defective products, components and

materialsthatfailtomeetqualityrequirementsandresultinmanufacturinglosses.

4. External Failure Costs: The costs generated when defective products are shipped to

customers.


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Fashion

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The graph in the previous page shows the interrelationship between the quality costs. The

followingchartshowstherelationshipbetweenthequalityandprofitability.

Quality & Profitability

IMPROVED

CONFORMANCE

BETTER OUTGOING

QUALITY LOWER REWORK

AND SECONDS

COSTS

LOWER COSTS OFRETURNS

INCREASED

PRODUCTIVITY

LOWER PRODUCTION

COSTS

INCREASED PROFITS


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BahirDar

University

IV

Fashion

Design

29

TrailerRentFee $127

Advertising 215

Insurance 50

Depreciation 264(($8/personx28people*)+$40/trip)

Wages 1,600($400/guide x4guides)

Shorelunch 1,680($60/personx28people*)

Total $3,936costpertrip

*24customersplusfourguides=28people

AssessingActivity

Based

Costing

A. AdvantagesofActivityBasedCosting

1. Moreaccurateoverheadcostallocationbecausetherearemorecostpools,

thecosts ineachpoolaremoresimilar,andallocation isbasedonactivities

thatcauseoverheadcosts.

2. Moreeffectiveoverheadcostcontrolbyfocusingonprocessesoractivities.

3. Focus on relevant factors by assigning costs to any cost object that is of

interestto

management.

4. Bettermanagementofactivitiesbyhelpingmanagers identifythecausesof

costsandtheactivitiesdrivingthem.

B. DisadvantagesofActivityBasedCosting

1. ABC is not easy to implement and maintain. ABC requires management

commitmentandfinancialresources.

2. UncertaintywithdecisionsmayremainandmanagementmustinterpretABC

data

with

caution

in

making

managerial

decisions.

Part II- Garment Costing

Documents

Transcript of Part II- Garment Costing