costing of men's formal shirt

NIFT

Costing of MEN’S FORMAL SHIRT A assignment of costing in apparel production

Chaitanya Attuluri Haqiqat Ali Sumit Sinha

Costing of men’s formal shirt Costing technique in clothing industry In order to achieve perfect garment costing, one must know about all the activities including purchase of fabrics, sewing, packing, transport, overheads, etc and also about their costs, procedures, advantages and risk factors. The Indian textile and apparel industry is very large and diverse, employing 35 million people and accounting for 27 per cent of the country's exports. The apparel industry plays a pivotal role as a key driver of the national economy and has grown to be the most significant contributor to the country's economy over nearly three decades of its existence. However, during last 10 years, the industry's actions, government policies as well as market events have begun to converge, providing several growth opportunities for the sector domestically as well as in the global market. As the MFA quota-regime ended, India presented many opportunities for buyers, suppliers and investors to collaborate with its textile industry, and to profit from the partnership. While the industry recorded a remarkable growth in a protected market environment, it faces a series of challenges that have come to the fore in the post-quota situation, notably in areas such as:



Price competitiveness.



Faster lead times.



High raw material base.



Full service offering.



Access to market. "A Cost is the value of economic resources used as a result of producing or doing the things costed".

Garments costing There are two types of garments, namely woven and knitted garments. Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are woven. T-shirts, sweaters, undergarments, pyjamas and socks are knits. Costing is the deciding factor for fixing of prices and the important thing to follow in all stages like purchase, production, marketing, sales, etc. Also update knowledge about everything related to garments, is essential to make perfect costing. Costing includes all the activities like purchase of fabrics and accessories, processing and finishing of fabrics, sewing and packing of garments, transport and conveyance, shipping, over heads, banking charges and commissions, etc. We must be aware that there are always fluctuations in the costs of raw materials and accessories, charges of knitting, processing, finishing, sewing and packing, charges of transport and conveyance. The method of making costing will vary from style to style. As there are many different styles in garments. Hence let us take men's basic T-shirt style as example which is in regular in use.

To find out the costing of a garment, the following things should things be calcuated: 

Fabric consumption.



Gross weight of other components of garment.



Fabric cost per kg.



Fabric cost per garment.



Other charges (print, embroidery, etc).



Cost of trims (labels, tags, badges, twill tapes, buttons, bows, etc).



CMT charges.



Cost of accessories (hangers, inner boards, polybags, cartons, etc).



Cost of a garment.



Price of a garment.

Fabric requirement for making a shirt: As said factory did not have engineers or merchant, they do not go for complicated

fabric

consumption

formula.

They

calculate fabric

requirement per garment on the basis of their experience. Factory purchases fabric from local market according the customer specification. They never procure fabric from mill or power loom. They have pre-set consumption quantity for different width of fabrics and shirts as shown in following table. Readers may find incorrect values in consumptions and costing but this article is written with actual data.

Sl. No.

Operation List

SAM

21

Hem right front

0.494

22

Attach front placket

0.603

1

Pinning to profile

0.234

23

Crease pocket

0.542

2

Run stitch collar

0.219

24

Hem pocket mouth

0.28

3

Trim collar

0.285

25

Attach pocket to front

0.861

4

Clip and turn collar

0.223

26

Attach brand label and tack loop

0.589

5

Crease collar

0.381

27

Crease patch pieces

0.236

6

Top stitch collar

0.42

28

Attach patch piece

0.333

7

Run stitch (R/s) collar band

0.291

29

Sew pleats

0.278

8

Crease collar band

0.317

30

Attach yoke to back

0.475

9

Insert collar in neck band

0.799

31

Top stitch back yoke

0.365

10

Turn and crease collar

0.452

32

Join shoulder

0.64

11

Attach bias piece to cuff

0.874

33

Top stitch shoulder

0.656

12

Crease cuff

0.458

34

Attach collar

0.535

13

Hem cuff

0.501

35

Close collar with size label

1.01

14

R/s cuff

0.565

36

Sleeve attach

0.862

15

Trim cuff

0.36

37

Top stitch armhole

0.678

16

Turn cuff

0.527

38

Top stitch side seam

1.036

17

Crease cuff bottom

0.566

39

Attach & close cuff

0.696

18

Attach placket to sleeve

0.795

40

Top stitch cuff

0.524

19

Lock and make diamond

1.026

41

Hem bottom

0.947

20

Sew pleats (4 no.)

0.389

Total SAM

22.322

Total Garment SAM: 22.32 minutes.

Fabric Consumption Calculation of a Basic Shirt Back Part 30.5”” (Body Length) X 27.5” (1/2 Chest) / 36”X 44” ( Fabric Wirth)

0.529 YDS

26” (Yoke Length) X 7” (Yoke Width) X 2 (Double Part) / 36” X 44”

0.229 YDS

32” (Body Length) X 16.5” (1/2 Chest) X 2 (Double Part / 36” X 44”

0.666 YDS

Front Part 32” (Body Length) X 16.5” (1/2 Chest) X 2 (Double Part) / 36” X 44”

0.666 YDS

Sleeve 23.5” (Sleeve Length) X 25” (Arm Hole) X 2 (Double Part) 36” X 44”

0.741YDS

12” (Cuff Length) X 3” ( Cuff Width) X 4 ( 2 X2 Parts) / 36” X 44”

0.99 YDS

Collar 21.5” ( Collar Band Length) X 2” ( Band Width) X 2 ( Double Part) /0.067 YDS 36” X 44” 21.5” ( Collar Band Length ) X 2” ( Band Width) X 2 ( Double) / 36” X0.054 YDS 44” Pocket 8” ( Pocket Length) X 6” ( Pocket Width) / 36” X 44”

0.03 YDS

Total Fabric Consumption

2.406 YDS

DIRECT MATERIAL Sl.no. Description FABRIC 1 woven fabric TRIMS 2 Fusing material and paper foam 3 Brand and Size Label 4 Care and Code Label 5 Thread 6 Buttons

Unit of measure

Cost

Consumption/pc Cost/pc

meters

100

2.2

220

pcs pcs cost/spool unit

5 1.5 1.5 4 0.25

1 1 1 1 12

5 1.5 1.5 4 3 235

Total-

DIRECT LABOUR Sl.no Operations 1 Inspection 2 Spreading & Marking 3 Cutting 5 Sewing 6

Finishing

Estimated SAM

Level of skill

Cost/min or unit

0.1

skilled

3.5

0.2

skilled

3.5

0.7

0.1

skilled

3.5

0.35

22.3

skilled semi skilled

3.5

78.05

3.5

1.75

TOTAL

81.2

0.5

Cost/piece 0.35

DIRECT EXPENSES PACKAGING COST Sl no. Description 1 Carton Box 2 Poly Bag 3 Hang-Tag 4 Packagaing Labor Cost

Unit of Measure

Cost(Rs)

pc

3

pc

0.6

pc

0.4

SAM

8

Consumption/pc Cost/pc 0.3 0.1 0.6 1 0.4 1 0.8 0.1 TOTAL 2.1

Total Cost/pc = Direct Material+Direct Labor+Packaging+overhead cost 318.3 Assuming wastages = 3% Overhead and Administrative Cost(8%)

327.849 34.35

Profit (10%)

36.2199

Totalcost/pc

398.4189