06January

How to calculate the CM (Cost Of Making) Of A Garment Featured

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Calculation of cm is a important part of merchandising profile. At costing meeting stage, supplier only gets one sample of the garment and specification of fabric and trims for the reference.

So its really important to calculate the correct cost of making to get the correct costing.

This post will help you all to calculate the COST OF MAKING.

To find out the CM of a garment, you must know below:

 

i) Monthly total expenditure (running cost) of factory (rent, wages, electricity bill, water bill, transportation, repairing etc).

ii) Total no of machines in the factory

iii) Number of machine required to complete this style (line layout of style)

iv) Estimated Production output per hour

v) Total working days (month)

vi) Daily working hours

Calculation Of CM:

For Example:-

Monthly Cost of Running:-  25,00,000 INR

Total no of Machines       :- 500

No of machines required for style: - 45

Estimated Production output per hour: - 55

Total Working days :-26

Daily working hours :-8

= {(Monthly total cost of running / 26) / (Total Machines) X (Number of machine required for style)} / [{(estimated Production output per hr) X 8}]

= [{(25,00,000 / 26) / ( 500 ) X (45)} / {(55) X 8}]

= [{96153.85 / (500) X (45) } / 440]

= (8653.85 / 440)

= 19.67 INR Per pcs.

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