How to calculate the CM (Cost of Making) of a Garment?

How to calculate the CM (Cost of Making) of a Garment?

Abdullah Al Mamun

Assistant Manager-IE

Fareast Knitting & Dyeing Industrial ltd

E-mail: ie.mamun@fareastknit.com

CM (Cost of Making) calculation is very important factors for every garment industries. Factory’s costing people should know the actual calculating method for calculation the CM. Other-wise factory may fall in huge loss. So its really important to calculate the correct cost of making to get the correct costing.

Way to calculate the CM:

To find out the CM of a item you must need the following information at first…….

1)      CPM (Cost per minute) of this factory.

2)      SMV of the garment.

3)      Average line efficiency. 

Now, to find the CPM (Cost per minute) of a factory must know this information—

Ø  Monthly total expenditure of this factory. Suppose-85000000/tk.

Ø  Total number of running machine of this factory. Suppose- 1500 machine.

Ø  Total working day of the followings month. Suppose- 25 days. 

Ø  Daily working hours. Suppose- 8 hours. 

Formula for calculation CPM:

Formula for calculation CM:

CM=(SMV X CPM X 12) / Line efficiency (%) 

Example: