ML Consultancy Hyderabad

Broad Calculation of Garments Cost of Making (CM)

Monthly Total Expenditure:

Qty of Running Machines:

Number of Machines:

Production Capacity per Hour:

Total Pieces in a Dozen:

Note:

The Cost of Making (CM) formula calculates the cost incurred in producing one dozen garments. It helps manufacturers determine the exact production cost per dozen, aiding in pricing decisions. A well-calculated CM ensures optimal resource utilization and profitability in garment production.

Explanation of Parameters:

Monthly Total Expenditure: The total cost (in dollars) spent on manufacturing per month.
Qty of Running Machines: The number of machines currently running in production.
Number of Machines: The total number of machines used for production.
Production Capacity per Hour: The number of garments a machine can produce in one hour.
Total Pieces per Dozen: The total garments considered per dozen (usually 12 but can vary).

Real-Life Applications:

Used in garment factories to estimate production costs.
Helps manufacturers optimize costs and pricing strategies.
Used in lean manufacturing to reduce wastage and increase efficiency.

Conclusion:

This formula is crucial for the apparel industry, allowing manufacturers to determine production costs effectively. A well-calculated CM helps in cost-cutting and profit maximization.