BAHIR DAR UNIVERSITY

Ethiopian Institute of Textile and Fashion Technology (EiTEX)

Program …Fashion Design Program

Advanced Fashion Product Development (Fdes6041)

Overview on- manufacture of fashion product, Textile fashion material and

Cost and profit in apparel manufacturing

Submitted to: Dr. Merertu Wakma

Submitted By: Getahun Belay

ID No: (BDU1402882)

Year: 2022

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 1. Manufacture of fashion product development

Garment manufacturing is a huge process. All operations are done in different

departments in garment industry. It is not possible to describe briefly about apparel
production. Garment manufacturing is a sequential process such as designing,
sampling, laying, marking, cutting, stitching, checking, finishing, pressing and
packaging etc. In this process, raw materials convert into finished products.

Figure 1;sector of fashion product manufacturing

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Figure 2; supply chain in textile industry

I will describe all operations of garment manufacturing step by step in section wise.
Flow Chart of Garment Manufacturing Process: Step by Step Section Wise

Design Sample Pattern Pattern Grading Marker Making Spreading

Fabric Cutting Fabric Sorting out & bundling cut fabric Print/ Embroidery
Assembling the part by sewing Sewing quality inspection ↓Ironing/ Pressing
Hand Tag/Label Final Inspection Packing Size wise cartooning Cartoon
Inspection Warehouse Shipment.

Designers and all textile developers to adopt through design process, the circular production
system, one of the most important levers that the fashion industry can pull to reduce its
environmental impact is closed-loop recycling, a system which is now starting to be rolled
out at scale, promising to limit the extractive production of virgin raw materials and decrease
textile waste. As these technologies mature, companies will need to embed them into the
design phase of product development while adopting largescale collection and sorting
processes.

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 2. Raw Materials for clothing product

Textile fibres can be broadly classified into two categories: Natural fibres and Man-made
fibres. Textiles are classified according to their component fibres into silk, wool, linen,
cotton, such synthetic fibres as rayon, nylon, and polyesters, and some inorganic fibres, such
as cloth of gold, glass fiber, and asbestos cloth[19]. They are also classified as to their
structure or weave, according to the manner in which warp and weft cross each other in the
loom (see loom; weaving).

Why we need fabrics?

• Functionality • Comfort
• Water absorbency • Fit
• Strength • Abrasion resistance
• Softness • Aesthetic attributes
• Stain resistance • Depends on taste of people

Figure 3; textile fibre characteristics

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Garment manufacturing requires fabric as the main input and several types of accessories for
functional and aesthetic purposes. Fabric variety to be used depends on the type of garment, its price,
season for usage, etc. In terms of fibres, cotton, polyester, viscose, linen, and their various blends are
quite popular. Accessories that are used in garment production include sewing threads, buttons, zips,
laces, hooks, labels, etc.

Fashion clothing materials is an essential part of the aesthetic of any design, it also plays a
remarkable role in the sustainability aspects of fashion. pointed out, the environmental
concern with regard to each fibre is different. Naming fibres “green” or “environmentally
friendly” does not paint a complete picture, since none of them are perfect in that sense; each
fibre might have its virtue in terms of sustainability, yet each has its problems. Designers
should be informed on the properties of various textiles and make better decisions based on
the available fiber assessments and the opinions of others.

Innovations in nanotechnology might introduce environmental benefits to the textile industry.

Manipulating fabrics at a nano-scale can possibly change their properties in a remarkable way.
Relevant to sustainable fashion are certain coatings and other finishes, which potentially extend the
product life or reduce the need for laundering. They might also aid to improve dye uptake and colour
fastness that would further decrease the harmful impacts of the dyeing processes. Although nano-scale
technologies seem to bring about environmental improvements, the long-term behaviour of nano-
particles in fabrics is still under further research.

Future trends for the fashion industry will include evoking potential benefits of smart
clothing from technological, human and competition perspectives; development of design
technologies for smart clothing; establishing significantly different design processes; and
providing concrete examples. Real cases of knowledge intensive innovation include products
such as MP3-player jackets, photonic clothing, bio-monitoring clothing, systems that
manufacturers already commercialize. A critical aspect of the production and dissemination
of smart clothes are that they evoke trends, methods, and strategies worldwide. The future
trend in wearable computing is to integrate electronics directly into textiles for better
performance. There are a large number of medical applications that will clearly benefit from
intelligent textile technologies.

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How textile material matter

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 3. Cost and profit in apparel manufacturing

In garments manufacturing sector, a business is totally depending on garment costing.

Costing is a very complex procedure, with set patterns and guidelines followed by the
industry. Garment prices are mainly based on the fabric consumption. Hence, we must pay
more attention to find out the fabric consumption more accurately or closely. It needs sound
knowledge and good practical experience to find out the fabric consumption.

Merchandiser 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, shipping, over heads, banking charges and commissions, etc. The
method of making costing will vary from style to style, as there are many different styles in
garments.

Cost of manufacturing can be defined as the cost incurred by the factory to run the factory
making garments. Factory running cost includes direct labour cost and manufacturing
overhead. Here manufacturing overheads are indirect workers’ wages, staff salary, power and
fuel cost, repair and maintenance cost, factory rent, administration cost etc. This cost is also
known as an operating cost. Cost of Manufacturing is determined for per unit garment

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There are two ways to find the Cost of Manufacturing (CM) for a particular style/order. 

1.  Based on Standard Time (SAM) of the product

2.  Based on Daily Production Average

1. CM Calculation Based on Standard Time (SAM) of Product Making

To get better accuracy in cost estimation one should prefer this procedure. Many small-size
companies do not have such resources to measure product SAM and data for the following
parameters. Following parameters are essential for cost calculation in this method.

1. Product SAM: Standard time of the garment. The standard time of a garment is

measured by using Time Study and using synthetic data .

2. Target Efficiency:  Target efficiency percentage is at what % you are expecting running

a specific product and order quantity. 

3. Operating Cost per day/machine - Operating cost is factory running cost. Operating
costs are all cost incurred to run the business other than material cost. Calculate monthly
operating cost and then calculate the daily operating cost. Calculate per machine
operating cost.

2. CM Calculation Based on Daily Production Figure

This method is widely used by garment manufacturing factories. Cost of Manufacturing

calculation is done based on historical production data. This is an easier method compared to the
above one.

Information needed to find Cost of Manufacturing

1. Daily production: Find the average daily production of a particular style (garment) based
on earlier (historical) production figures. Calculate the daily average production of the
factory. 

2. Manpower involved in production: How many sewing machines or sewing operators

are utilized to produce the above quantity. 

3. Operating cost per day/machine: As explained above.

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Profit is the most important factor in which the entire factor is depending on running
the business. Profit margins are calculated depends on the product value and work take
place to the garment. When the higher quantity of production will give less cost of
production, where the lesser quantity of garment gives higher cost of production.
Whether it consumes same time for the production process. Usually, the profit margin is
placed from 10% to 30 on a garment, where it completely depends on the volume and quality
of the
product.

The formula to calculate Profit/Loss by Multiple-Step Method is as follows:

Revenues – Expenses – Taxes = Net Profit or Loss

Revenues = Sales Revenue – Sales Returns + Service Revenue + Wastage Revenue + Other
Revenue

Expenses = All operating expenses + Cost of goods sold + Research and Development +
Salaries and Wages + Administrative Expenses + Travel + Utilities + Other Expenses.

Purpose of Preparing Profit and Loss Account:

It provides a brief understanding of the financial health of a company.

It helps to project revenues.
Forecast Expenditures.
Compare actual performance with projection.
Maintain provision and reserves depending on the financial health of the company.
It gives us to take corrective action.
It should be reviewed with operation staff for improvements.

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Reference

Textile manufacturing,2020 by textile blog

RajkishoreNayak ,Rajive padhye,Garment manufacturing technology 1st edition
Environmental analysis of textile products (Chen, H.L. and Burns, L.D., 2006.
(Fletcher, K., 2013. Sustainable fashion and textiles: design journeys. Routledge).

Clothing and Textiles Research Journal, 24(3), pp.248-261).

Amit Bhaduri (2007), “Growth, Distribution and Innovations, Understanding their

interrelations”, Routledge, London

Cost analysis in garment industry(Pdf Download available).Available from:

https://www.researchgate.net/Publication/282604549-Cost_Analysis_in_Garment_industry

Effective cost analysis model for apparel industry by :Dr.S.Poonkuzhali