Varieties of Yarn

RAW MATERIALS

Cotton Yarn- 100%

100% Polyester

100% Viscose

100% Acrylic yarn

100% Wool

100% Silk

BLENDS

65/35 - P/C yarn

65/35 - P/V yarn

50/30/20 - P/C/V

70/30 - P/A

70/30 - W/A | W/V

COSTING: The price value as per the resources consumed by producing an item(garment).

RESOURCES: Man power, machine, material, spares, power.

COSTING FOR A GARMENT:

A) Fabric required for a garment = 0.8 yard

B) Wastage of Fabric to produce a garment = 3%

M Fabric consumption / garment = M = A + AB/100 = 0.8 + 0.8 * 3/ 100 = 0.8 + 0.024 = 0.824 yard

(included waste%)

C) Fabric cost / yard = 2.7 dollar

D) Insurance charges for fabric(0.824yd) + Transportation = 0.3 dollar

E) Finance charges for the fabric purchase = 15%

 N = [M * (C+D) + (M * C * E)]

N = [0.824 (2.7 + 0.3) + (0.824 * 2.7 * 15/100)] = 2.81 dollar/garment

F) Trim Cost / garment = 1.5 dollar

G) Thread for stitching / garment = 210 metres

H) Thread Price / 5000 meters cone = 6 dollars

O = Thread cost = G * H/100 = 210 * 6/5000 = 0.252 dollar/garment

I) Time required for 1 garment preparation = 40 minutes

J) Labour cost per minute = 0.03 dollar

P = Labour cost/ garment = I * J = 40 * 0.03 = 1.2 dollar

TOTAL COST FOR A GARMENT = N + F + O + P = 2.81 + 1.5 + 0.252 + 1.2 = $5.762

 DIRECT COST –
 Wages and Salaries of Labour and Employees
 Raw material (Fabric consumed + Accessories)
 Machine, Spares
 Testing Equipment
 INDIRECT COST –
 Administrartion exp
 Security adv
 Over heads
 Overheads are running exp like rent payments, goodowns for keeping stocks, exp
like insurance, finance, travel exp, govt fees, factory license, fire safety etc.

4) Capital

 Fixed cost
 One time exp
 Building
 Machinery

5) Stocks: Inventory

Minimum order quantity) (MOQ)

 It is the lowest quantity that a supplier is willing to sell. It is the minimum amount our customer
has to spent per one order. He has to stock at their goodown.

EOQ :

For inventory control minimising total stock and reordering for a year.

With this materials management solution is easy.

Selection of Suppliers

Suppliers manufacturers purchasers

1) Industry to produce quality products.

2) Quality of supplied fabrics is as per the expectations of the customers.
3) Cost of fabric
4) Quantity of fabric
5) Financial position of suppliers
6) ISO/ISI/legal requirements

ISO: international organization for standardisation.

Iso 9001:2015

FOUR PHASES AND NINE BUILDING BLOCKS OF OUTSOURCING

1. Architect
a. Investigate
b. Target
c. Strategize
d. Design
2. Engage
a. Select
b. Negotiate
3. Operate
a. Transition
b. Manage
4. Regenerate
a. Refresh