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Method of Calculating Cost per Minute of a Sewing Line

Method of Calculating Cost per Minute of a Sewing Line


Question: How we can calculate cost per minute of a garment sewing line in a very easy way? Show me an easy method of calculating cost per minute of a sewing line. ... asked by Masum

Cost per minute of line is calculated only for direct labors. Direct labors like sewing operators, helpers, line supervisor and quality checkers.

There are two types of Cost per Minuteof a sewing line -

1. Estimated cost per minute of a line and

2. Actual cost per minute of a line

As you did not specifically ask which one you need, I am explaining bot

1. Estimated cost per minute of a line:

To use this calculation your operators need to be salaried. Formula used to calculate Estimated cost per minute

= Total salary of a line for one day / (Total minutes available*Line efficiency%)

To calculate total salary of a line includes all operators, helpers working in a line. You can also include Quality checkers and line supervisors and feeder if they are not considered under overhead. So, you have to find following three parameters to calculate estimated cost per minute of a line.

1. Total salary of a line for one day

2. Total minutes available

3. Line efficiency%

Where, Total minutes available = Number of total labors *Daily working hours *60

An example:

Total estimated salary of a typical line is INR 6000.00 and total manpower 20 of a 15 machines line and line efficiency 40%

Cost per minute of the line = (6000 / (20*480))*40% = Re 0.25

2. Actual cost per minute of a line

Formula used to calculate actual cost per minute of a line

= (Actual salary for the day/ (Total garment produced * SAM))

So, you have to find following three parameters -

1. Calculate actual salary of all operators and other direct labors working on the line in a day

2. Total pieces made by the line

3. Garment SAM of the running order

An Example:

Assume that total actual salary of a typical line is INR 6000.00, the line made 400 pieces and garment SAM 22 minutes.

Therefore,

Cost per minute of the line = (6000 / (400 * 22)) = Re. 0.68