Minute cost calculation in sewing lines is a common and most important task for textile engineers / industrial engineers. Because maximum earning depends on it. So industrial engineers have to do it very consciously. The cost per minute of sewing lines in the apparel industry is calculated for sewing operators, helpers, line supervisors, and quality checkers.
Methods of Calculating Cost per Minute of a Sewing Line:
There are two types of cost per minute (CPM) of a sewing line in garments factory –
- Estimated cost per minute of a line
- Actual cost per minute of a line
We can explain in the following way,
1. Cost per minute of sewing line,
…….Total salary of sewing line for one day
= ………………………………………………………………
….Total minutes available × Line efficiency%
…………………………..Total salary of sewing line for one day
= ………………………………………………………………………………………………………
….Total no. of manpower × daily working hour’s × 60 × Line efficiency%
For example,
If an apparel industry’s
Total salary of sewing line = $500/day
No of manpower = 50
No of machine = 50
Line efficiency = 70%
Now calculate the cost per minute in 8 working hours of each sewing line for that garment.
Solution:
Cost per minute of sewing line,
…………………………..Total salary of sewing line for one day
= ……………………………………………………………………………………………………..
…..Total no. of manpower × daily working hour’s × 60 × Line efficiency%
……………500
= …………………………..
….50 × 8 × 60 × 0.7
= 0.03 $
So, the costs per minute for each sewing line 0.03 $.
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2. Costs per minute of sewing line,
……………………Actual salary per day of all the operators and helpers
= …………………………………………………………..……………………………………………………..
….Total no. of garments produced × standard allowed minute (SAM) of garments
For example,
Suppose, in Fakir Fashion Ltd. actual salary per day of all the operators and helpers is $1000, total garments produced per day is 500, where standard allowed minutes (SAM) for the garments is 25. Then calculate the costs per minute of each sewing line for that garment.
Solution:
Here,
Actual salary per day of all the operators and helpers = $1000,
Total no. of garments produced= 500,
The standard allowed minutes (SAM) for the garments= 25
Now,
Costs per minute of sewing line,
…………………….Actual salary per day of all the operators and helpers
= ………………………………………………………………………………………………………………….
….Total no. of garments produced × standard allowed minute (SAM) of garments
…….1000
= ……………..
….500 × 25
= $0.08
So, the costs per minute of the sewing line are $0.08.