Calculate the CM of a garment
Dear All,
My this post for these people, who's are still confused regarding the CM (cost of making) of a knit items (garments). to seek out out the CM of a item you want to need the subsequent 06 (six) information initially , as listed below:
1. Monthly total expenditure of your factory with factory rent, commercial cost, electricity bill, water bill, transportation, repairing, worker & stuff wages etc. (8hrs/day) in Indian Rupees . Suppose - 50,00,000/- Rs.
2. Qty. of running Machine of your factory of the subsequent month (which total expenditure we've consider here). Suppose - 100 machines
3. Number of machine to finish the layout for the subsequent Items (which CM we are calculating). Suppose - 25 machines
4. Production target/capacity of the subsequent items, per hour from the prevailing layout, excluding alter & reject. Suppose - 200 pcs per hour
5. Total working day of the followings month,(though the house rent, commercial expenses, machine overhauling & another cost remain same)Suppose- 26 days.
6. If you would like to calculate the CM in US$ (dollar) then pls input present dollar conversation rate BD Tk. Suppose - $1 = 72 Rs.
rule:
COST of creating (CM)
= {(Monthly total expenditure of the subsequent factory / 26) / (Qty of running Machine of your factory of the subsequent month) X (Number of machine to finish the layout)} / [{(Production capacity per hour from the prevailing layout, excluding alter & reject) X 8}] X 12 / (Dollar conversion rate)
= [{(50,00,000 / 26) / ( 100 ) X (25)} / {(200) X 8}] X 12 / 72
= [{192307.7 / (100) X (25) } / 1600] X 12 / 72
= (48,076.9 / 1600) X 12 / 72
= 30.048 X 12 / 72
= 360.58 / 72
= $5 / dozen (this is that the making cost (12 pcs) of the subsequent items)
However, normally at the present (after starting the new salary scale)in Bangladesh we calculate the CM of any item consider the overhead home appliance cost 1200 rs. to 1400 rs./day meaning $16.66 to $19.44/per day.
Above is for a non-compliance factory. For the a compliance factory the per day machine cost are going to be 1800 rs to 2100 rs ( $25.00 to $29.16)
SO, if the an items produce 1600 pcs per day using 25 machines then the CM are going to be
= Overhead machine cost X require machine / produce quantity X 12 / $74
= 1400 X 25 / 1600 X 12 / 74
= $3.547/DOZ
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