Planning Related Calculations

There are some formulas using to calculate Planning Capacity, Line cost, CPM, CM etc which is ought to know for a Planning Person.




SMV( STANDARD MINUTE VALUE):

SMV Means the standard value in minute to complete any operation of garments.
This value is considered as standard all over the world. Where SAM (Standard Allocate Minute) is
considered as the standard allocated value in a particular industry or country.
This is the basic difference between SMV & SAM.
Formula:
SMV = (Basic Time + Allowance) / 60

Here, Basic Time= Observe Time X Rating
& Rating = Skill + Effort +Concentrate

EFFICIENCY:

Efficiency means the ability to produce garments.
Formula:
Efficiency = Earn Min /Work Min %
Where Earn Min= Produce Qty. X SMV
& Work Min = M/C X 60 X 10
Note: No loss time will be considered while calculate efficiency.

TARGET CALCULATION:
To give the target production plan & also to fine out the output following formula is
used-
Target = Working Minute X Efficiency / SMV

CAPACITY CALCULATIONS:

Factory Capacity  =(Manpower X Number of Line X Daily W/H X 60 X Monthly Working Day) X Efficiency % / Avg. SMV
= X pcs

Example: Suppose a factory run 52% efficiency where average for sewing is 12, total sewing workers -720 and
average working hours 10, then calculate factory production capacity of a month- February.
Monthly working day except Friday & 21st February = 23 days
Capacity of the Month February = 720 X 10 X 60 X 23 X 52% = 430560 pcs
12
If absenteeism % = 5 then present = 95% then Capacity = 430560 X 0.95 = 409032 pcs

LINE COST:
It is the cost of a line of a factory in a day .
To know the line cost of a factory we need to know the total factory cost in a month,
total number of running line & total working day for that month.
Formula:
LINE COST = Total Factory Cost
Total Number of Line X Monthly Working Day

CPM CALCULATION

CPM (COST PER MINUTE)
The cost of a line in a minute which included all machine cost of that line called CPM.
It is also mentioned as the Per Minute Cost of a Machine.
To calculate CPM we need to know the – line cost, number of machine of that line & working hour of a day.
FORMULA:
CPM = Line Cost Of A Day / No. Of M/C X W/H X 60

CM CALCULATIONS

CM ( CUT & MAKE CHARGE OR COST OF MAKING)
The cost of making a garment by all individual operational including from cut to ship called cut & make charge
or cost of making. Here fabric & accessories cost will not be included.
This CM can be calculated by SMV wise or machine wise.

SMV WISE FORMULA:
CM = SMV X Cost Per Minute (CPM) / Efficiency %

MACHINE WISE FORMULA:
CM = Per Machine Cost Per Day X No. Of Machine In A Line / Average Daily Out Put

EPM CALCULATIONS

EPM (EARNING PER MINUTE) :
The earn per minute from a garment excluding CM cost.
It is also expressed as how much we income in a minute by producing a garment.

Formula:
EPM = CM X Production Qty per day / Working Minute