Production Planning in Garment Manufacturing:
Production planning is an important aspect of the garment manufacturing industry. Precision in planning equates to on-time shipments, the best use of labor, and assurances that appropriate supplies and equipment are available for each order. Production planning involves everything from scheduling each task in the process to execution and delivery of products. In most cases the production of garments is very time sensitive in order to ship goods to stores and boutiques for the upcoming season. In the context of garment manufacturing, performance measurement parameters in garment production planning are listed below. Each parameter is explained briefly, just as an overview of the task.
Performance Measurement Parameters in Garment Production Planning:
Key performance measurement parameters include:
1. Cut to Ship Ratio:
This demonstrates the percentage of garments dispatched out of a total number of garments cut for a particular style or order. A ratio around 98% will be considered very good, which means that only 2% of garments are rejected in the style.
………………………….Total pieces shipped
Cut to Ship ratio = ——————————————
…………………………….Total Pieces cut
Total pieces shipped – Information collected from final packing list.
Total pieces cut – Information collected from cutting room records.
2. Labor Cost per Minute:
This is a significant parameter while determining the garment cost. It assists in determining the labor cost involved in the production of a garment.
…………………………………..Total cost incurred on labor
Cost per minute = —————————————————————————
………………………..Total available working minutes x No. of labor
To determine the labor cost of a new style or order, its SAM value is estimated and then multiplied to cost per minute and efficiency to get the actual labor cost.
Example: A garment unit has 500 direct sewing operators and helpers.
The cost to the company for the 500 operators is Tk. 3,900,000. The company works for 8 hours per day for 26 days in a month. Therefore,
Total working minutes per operator = 12,480 minutes.
Cost per minute = 3,900,000/(12,480 × 500) = Tk. 0.625 per minute.
3. Plan Performance Index:
This demonstrates the variation between the planned work and the actual work completed.
………………………………………Achieved production
Plan performance index = ————————————- x 100
……………………………………….Planned production
This assists in assessing the effectiveness of the garment factory plan in order to achieve the target dates.
4. On-Time Delivery:
This shows the percentage of deliveries that a garment industry is able to make on-time without any delays. An on-time delivery represents that the garments or products are dispatched on time to the buyer.
………………………….Successful deliveries
On time delivery = ——————————– x 100
……………………………Total deliveries
5. Capacity Utilization:
The degree to which the manufacturing capacity of an industry is utilized in production of garments is known as capacity utilization. It is the ratio between actual output produced with the existing facilities such as equipment and labor and the potential output.
……………………………….Produced garments or Produced minutes
Capacity Utilization = ———————————————————————– x 100
……………………………….Capacity in terms of garments or minutes
Suppose the garment industry produces a standard garment style. Then capacity could be expressed by means of number of garment pieces. But, if there is a vast variation in the products produced, then the unit of measure should be number of minutes produced.
Example: Suppose if the industry has 500 operators and they work at 67% efficiency. The factory runs 24 days in a month, 8 hours each day. The factory made 280,000 pieces in 12 minutes each in the last month.
Produced minutes = 280,000 × 12 = 3,360,000 minutes.
Capacity = 500 × 0.67 × 26 × 480 = 4,180,800 minutes.
Capacity utilization = 3,360,000/4,180,800 = 80.37%.
6. Lead Time:
It is the time period between the confirmation of an order and the dispatch of the order to the buyer. A shorter lead time is beneficial as the buyer wants dispatch of their products as early as possible. Lead time comprises waiting time before or after actual manufacturing and throughput time.
7. Overtime %:
It is the percentage of overtime utilized apart from total working time.
………………..Total overtime minutes
Overtime = ——————————————— x 100
………………..Total working minutes
8. On Time in Full:
OTIF (on time in full) is the primary parameter for logistics performance.
It evaluates whether the supply chain was capable to deliver:
- The expected product
- In the quantity ordered
- At the place agreed
- At the time expected by the customer
…………..Number of deliveries OTIF
OTIF = —————————————————— x 100
…………..Total number of deliveries
9. Absenteeism:
It refers to the absence of operators from regular work without permission and is avoidable. Absenteeism in the apparel industry is in the range of 10%–15%.
……………………………..Number of man days lost
Absenteeism = ————————————————————— x 100
…………………….Number of man days scheduled to work
10. Attrition Rate:
Retention of laborers is a huge issue in an apparel industry. This parameter could tell the manager whether their efforts toward labor retention are harvesting benefits.
………………………..Number of attritions x 100
Attrition rate = —————————————————— x 100
…………………….Actual employees + new joined
Conclusion:
Effective performance measurement parameters in production planning play a crucial role in ensuring the efficiency, effectiveness and competitiveness of the overall garment production process. By prioritizing these parameters, businesses can streamline processes, reduce lead times, and enhance overall operational excellence in the dynamic landscape of garment industry.
References:
- Apparel Manufacturing Technology by T. Karthik, P. Ganesan, and D. Gopalakrishnan
- Garment Manufacturing Technology Edited by Rajkishore Nayak and Rajiv Padhye
- Practice of Garments Merchandising and Management by Engr. Md. Faruk Hosen
- Garments and Technology by M. A. Kashem
