**Calculate the CM (Cost of Making) of a Garment**

**Noor Ahmed Raaz**

B.Sc. in Apparel Manufacturing

Asst. Merchandiser

Opex Sinha Group, Narayongonj

**Email:**raju.uttara72@yahoo.com

**Introduction:**

Normally at present (after starting the new salary scale) in Bangladesh we calculate the CM of any item consider the overhead sewing machine cost 1200 tk to 1400 tk/day that means $15.38 to $17.95/per day.

Above is for a non-compliance factory. For a compliance factory the per day machine cost will be 1800 tk to 2100 tk ( $23.08 to $26.92).

Example :

Example :

If an items produce 1600 pcs per day using 25 machines then what would be the CM cost ???

CM cost = Overhead machine cost X require machine / produce quantity X 12

= (1800 X 25 / 1600 )X 12

= 337.5 Taka

= $ 337.5/78

= $ 4.32 /dozen

Solution:Solution:

CM cost = Overhead machine cost X require machine / produce quantity X 12

= (1800 X 25 / 1600 )X 12

= 337.5 Taka

= $ 337.5/78

= $ 4.32 /dozen

**Calculate the CM of a Garment**
Calculate the CM after discussion with your production department. It’s vary depends on require machine qty & output qty.

To find out the CM of a item you must need the following 06 (six) information at first, as listed below

=(

OR

= Overhead machine cost X require machine / produce quantity

= [{Monthly total expenditure of the following factory / (26 X Qty of running Machine of your factory of the following month)}] X (Number of machine to complete the layout) / produce quantity per day.

= [{50,00,000 / (26 X 100 )} X 25] / {(200) X 8}] X 12

= [{192307.7 / (100) X (25) } / 1600] X 12

= (48,076.9 / 1600) X 12

= 30.048 X 12

= 360.58 Taka

= $ 360.58/ 78

= $ 4.62/dozen

This is the making cost (12 pcs) garments.

Garments making |

- Monthly total expenditure of your factory with factory rent, commercial cost, electricity bill, water bill, transportation, repairing, worker & stuff wages etc. (8hrs/day) in bangla taka. Suppose-50,00,000/tk

- Qty of running Machine of your factory of the following month (which total expenditure we have consider here).Suppose- 100 machine.

- Number of machine to complete the layout for the following Items (which CM we are calculating). Suppose - 25 machines .

- Production target/capacity of the following items, per hour from the existing layout, excluding alter & reject. Suppose 200 pcs per hour.

- Total working day of the followings month,(though the house rent,commercial expenses, machine overhauling & some other
**cost**remain same)Suppose- 26 days.

- If you want to calculate the CM in US$ (dollar) then pls input present dollar conversation rate BDTk. Suppose $1 = 78 tk.

**COST OF MAKING (CM)**=(

**SAM of the garment*** Minute cost of the labor) / Line efficiency (%)OR

= Overhead machine cost X require machine / produce quantity

= [{Monthly total expenditure of the following factory / (26 X Qty of running Machine of your factory of the following month)}] X (Number of machine to complete the layout) / produce quantity per day.

= [{50,00,000 / (26 X 100 )} X 25] / {(200) X 8}] X 12

= [{192307.7 / (100) X (25) } / 1600] X 12

= (48,076.9 / 1600) X 12

= 30.048 X 12

= 360.58 Taka

= $ 360.58/ 78

= $ 4.62/dozen

This is the making cost (12 pcs) garments.