Trimming and Checking Cost of Garments:
Trimming and checking are done after the operation of sewing department. Trimming and checking are crucial steps in garment manufacturing that ensure the finished product meets quality standards. These operation not only enhance the overall appearance of the garment but also play a role in reducing defects and customer complaints. Understanding trimming and checking cost of garments can help manufacturers optimize their production processes and maintain cost-efficiency.
In trimming department, based on the factory size, either machine trimming or manual trimming process is performed. Here, the efficiency and quality of the operation depends upon the labor skill. The work of the checking department is totally manual. The stitched garments will be inspected visually for damages or quality deviations from the requirements are evaluated. Here, the damages or quality imperfections are identified and the garments are sent to rework for sewing department. Those garments are re checked after re stitching and then passed to the next department.
The main activity details of the Trimming and Checking department are listed below:
Receipt of sewn garment
↓
Analysis of extra thread and trimming
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Removal and cleaning of loose and cut threads
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Visual inspection for sewing and fabric defects
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To pressing and packing
Both the trimming and checking processes are mostly performed manually and the production capacity depends upon the skilled manpower generally. In trimming and checking, no additional raw materials are used in general. Hence, the cost of this department will generally be labor cost and overhead expenses or sometimes along with it the trimming machine, running cost will be included. In trimming and checking department of garments industry, the cost factor depends up on the-
(i) Size and style complication of the garment:
- In trimming: For complicated styled garments, the number of stitched components will be higher. This leads to more places to trim and thus increases the time per garment. With respect to larger garments, the handling will delay the process time per garment.
- In checking: More number of parts or complicated styles lead to deviate from the standard checking procedure and hence, the time consumption increases.
(ii) Quality requirement:
Based on the specific requirement for individual styles, the trimming and checking points are increased. This will lead to higher cost consumption.
As the operation is performed manually, both the points will increase the time required to inspect a garment. If the style is complicated, the time required will be higher and if the specifications are to be strictly adhered to, then the number of critical points to be inspected will be higher and so the time. In the case of trimming and checking activity, the tech pack information has no role to play other than the parameters discussed in the sewing department. The main function will be the visual inspection of the sewing defects, fabric defects and stain marks in the fabric after sewing due to the multiple operators handling. Following examples will detail the steps involved in the checking department cost calculation process.
Following examples will detail the steps involved in the trimming and checking department cost calculation process in garments industry.
Example 1:
Consider the order quantity of 25,000 garments. The average production of the checking department is 2,800 garments per day. The department works with 4 trimming operators and 8 checking personnel to complete the order. The operators are paid Tk.320 per shift as wage. Calculate the cost of the checking department if the company works 2 shifts per day. The other overheads spent by the company are Tk.10,000 for power, Tk.18,000 for supervisor salary, Tk.8,500 for building rent per month of 30 days.
Solution:
Step 1: Number of shifts required to complete the order
The order quantity = 25,000 garments
Daily production = 2,800 garments/day
…………………………………………………………………Order quantity
No. of shits required to complete the order = ——————————————
………………………………………………………………..Daily production
….25,000
= —————
…..2,800
= 8.9 days ~ 9 days.
The company works 2 shifts per day, hence no. of shifts to complete the order is 18.
Step 2: Calculation of labor cost
The operators in this department are 4 trimming operators and 8 checking operators.
Wages per shift = Tk. 320
Hence, the total labor cost is
= (Number of labors × Total working shifts × Wages per shift)
= (12 × 320 × 18)
= Tk. 69,120
Labor cost = Tk. 69,120
= 576 USD [1 USD = 120 Taka]
Step 3: Calculation of overhead costs
The company spends following costs as overhead and company works 30 days per month
- Tk. 10,000/month for power
- Tk. 18,000/month for salary
- Tk. 8,500/month for rent = Tk. 10,000 + Tk. 18,000 + Tk. 8,500
= Tk. 36,500
= 304.17 USD [1 USD = 120 Taka]
……………………36,500
Cost / day is = ————————
……………………..30
= Tk. 1,216.6730
Company works for this order only 9 days.
= Overhead cost of a day × 9
= 1,216.67 × 9
= Tk. 10,950.03
= 91.25 USD [1 USD = 120 Taka]
Step 4: Calculation of total cost
Total cost = Labor cost + Overheads
= Tk. 69,120 + Tk. 10,950.03
= Tk. 80,070.03
Total checking cost of the order = Tk.80,070.03
= 667.25 USD [1 USD = 120 Taka]
………………………………………..Total cost
Checking cost / garment = ———————————-
…………………………………….Order quantity
….80,070.03
= ————————-
……25,000
= Tk. 3.20
= 0.027 USD [1 USD = 120 Taka]
The checking cost of the garment is Tk. 3.20 Or 0.027 USD
Example 2:
A trimming and checking department of a company received an order quantity of 10,000 garments. The total number of labor used in the trimming and checking process are 5 and 7 respectively. The wages spent are Tk. 320 and Tk. 375 respectively for the trimming and checking personnel. The average production of the department (for similar garments) is 1500 garments per day and the department works 2 shifts per day. Due to the complexity of the garment, 2 checking personnel are used for the re checking process with the same wage but 1 shift per day. Calculate the checking cost of the style with 5% profit.
Solution:
Step 1: Number of shifts required to complete the order
The order quantity = 10,000 garments
Daily production = 1,500 garments
………………………………………………………………….Order quantity
No. of shits required to complete the order = ————————————-
………………………………………………………………..Daily production
….10,000
= ————-
…..1500
= 6.66 shifts
Since the company works 2 shifts per day, they need to work 3.33 days to complete the order.
Step 2: Calculation of labor cost
The operators in this department are 5 trimming persons and 7 checking persons and 2 rechecking persons.
Wages per shift = Tk. 320 for trimming persons and Tk. 375 for checking persons.
Note: The re checking personnel work 1 shift per day. Hence, for 3.33 days they will work only 3.33 shifts. But the trimming and checking department personnel will work for 6.66 shifts in 3.33 days.
Hence, the total labor cost is = (Number of labors × Total working shifts × Wages per shift)
= (5 × 320 × 6.66) + (7 × 375 × 6.66) + (2 × 375 × 3.33)
= Tk. 10,656 + Tk. 17,482.5 + Tk. 2,497.5
Labor cost = Tk. 30,636
Step 3: Calculation of overhead costs
Since, the overhead details are not provided, 120% of the direct labor cost will be used as overhead for the 3.33 days.
Overhead cost for the total order running days = Direct labor cost × (120/100)
= 30,636 × (120/100)
= Tk. 36,763.2
Step 4: Calculation of total cost
Total cost = Labor cost + Overheads
= Tk. 30,636 + Tk. 36,763.2
= Tk. 67,399.2
Adding 5% profit = 67,399.2 + {67,399.2 × (5/100)} = Tk. 70,769.16
Total checking cost of the order = Tk. 70,769.16
………………………………………………………………..Total cost
Trimming and Checking cost / garment = —————————–
……………………………………………………………Order quantity
….70,769.16
= ——————-
……10,000
= Tk.7.08
The trimming and checking cost of the garment is Tk. 7.08
References:
- Handbook of Textile and Apparel Costing by Rathinamoorthy, Surjit and Vishnu Vardhini
- Apparel Merchandising by R. Rathinamoorthy and R. Surjit
- Garments Merchandising by M.A. Kashem
- Practice of Garments Merchandising and Management by Engr. Md. Faruq Hosen
