Average CAD Consumption Calculation

Average CAD Consumption Calculation

The average CAD consumption calculation is needful to the garments sector. The CAD consumption is also a vital part of the performance of the cutting department. When the cutting department is working on cut panels in various colors and styles. The department will unable to report accurate CAD consumption. That time he will be dependent on average CAD consumption for accurate reporting. The below example is for your reference-

Buyer Name: RH style 8MS038
Colour : blue print c19 Garments qty                 = 8009 pc     =  18.63 + 2.71 %      = 12771 yds  (body)
Colour : blue print c19 Garments qty                 = 7566 pc    =  0. 51 + 4 %      = 335 yds ( trim)
Colour : maroon print c58 Garments qty           =    7566 pc     = 18.97 + 3.01 %        = 12322 yds (body)
Colour : maroon print c58 Garments qty           =    8009 pc =    0.50 + 4 %          =   347 yds (trim)
  Sample  fabric                                                                                                                   = 87 yds
                                                                                                                        Total fabric qty = 25862 YDS
Average CAD Consumption
Average CAD Consumption
Average CAD Consumption Calculation
A) blue print c19 Garments qty = 8009 pc 18.63 2.74%
 blue print c19 Garments qty = 8009 pc 0.514.00%
Total19.146.74%
B)maroon print c58 Garments qty =    8009 pc 18.973.01%
maroon print c58 Garments qty =    8009 pc 0.504.00%
Total19.477.01%
C) Final Cad Consumption & Excess % Calculation:
RH style 8MS038
Total =A+B38.6113.75%
Avg.=  (A+B)/219.316.88%
Average CAD consumption Result

So, We can easily identify the accurate CAD consumption on the above calculation.

Plus and Short Shipment Bonus and Penalty Incentive Calculation

Plus and Short Shipment Bonus and Penalty Incentive Calculation

Plus and Short Shipment Bonus and Penalty Incentive Calculation is too much important to increase productivity in garments organization. Many organizations are calculation the bonus and penalty incentive in favor of factory management. That’s why the company is being a little bit looser for that type of incentive. if it’s calculated in the proper way both are benefited accordingly.

Here we share with you a table for “Plus and Short Shipment Bonus and Penalty Incentive Calculation” where the red color is factory management benefit and the orange color is company benefited.

Cut to Ship Bonus & Penalty Incentive Calculation

If you didn’t understand the above calculation, please go my YouTube chellan for details understanding on below link. for soft excell copy

The incentive is earned per qty. CM (Contribution Margin) multiplied by plus shipment and company approval ratio like 35% of total earning.

Short shipment against order quantities has been affecting business day by day. Despite lots of warnings, motivation and training the same as remain unchanged. In this context, you may impose Cut to Ship Bonus & Penalty Incentive to reduce short shipment. I thank & believe the above following scheme will be viewed very positively by all concerned to grab at the opportunity of achieving that type of rewards.

Allocation of Selling & Commercial Overhead on the basis of Buyers activities

Allocation of Selling & Commercial Overhead on the basis of Buyers activities

The allocation of selling and commercial overhead on the basis of buyers’ activities is most important to calculate accurate profitability in any organization. The buyer’s wise profitability depends on his transaction activities. When any organization can perfectly identify his all transaction, buyer profitability will be more accurate.

Now we will discuss the process of analyzing the data, how will calculate or allocate selling and commercial overhead on his activities.

Area of Selling & Commercial Overhead: Non-manufacturing overheads, which are related to Import & Export of raw material and finished goods respectively. Cost includes § Documentation, § BL collection, § C& F charges, § Bank Charges, § Insurance, & §Transport Cost.

Purpose of developing Selling & Comm. OH allocation method: a) Develop more competent Commercial OH allocation method instead of present flat commercial overhead rate b) Define & calculate Commercial OH separately by i) Export Cost ii) Import cost c) Determine separate rate Export & Import cost for each buyer basis on

  – Nature of Export transaction

  – Incurred documentation cost

  – Nature of procurement a) Ensure buyer-wise budgeted profitability more precisely & accurately. b) Develop a stand-alone module of Pre-costing to automate some daily basis core business report.

Cost differentiate due to Invoice amount & Document Proceed amount:

Selling & Commercial Expenses

Calculation for Import Cost:

Calculation of Export Import Cost

Cost of Working Capital:

>>In RMG, an efficient working capital requires competent movement of Account payables, Account Receivables & Inventories. >>Quality of Job relies on profit rather than the efficient movement of the above three core factors. >>The goal of working capital management is to maximize operational efficiency and reducing capital costs.

Calculation of CWC:

Cost of working capital= RM procurement X WC blockage period X PC rate of 7% p.a

NB: Make the costing simple in manual process, blockage in major item like fabrics would be considered.

Important Spare Parts and Price of RMG Sectors machinery

Important Spare Parts and Price of RMG Sectors machinery

Important Spare Parts and Price of RMG Sectors machinery is a most vital part of companies profit and also sustaining or taking good buyer from abroad. New types of machinery are depreciated as reducing balance methods. Which is incurred firstly less repair and maintenance after that gradually it depreciates accelerate basis. That’s the main reason after a few years repair and maintenance is high. The major and important parts and price information as per Bangladeshi companies’ usages. The below reference are-

P/M Rotary Hook, Auto 110-38650, Price BDT 2300/-. P/M Pedal Sensor Volume, E-10, Juki-Japan, Price BDT 3200/-.

B/H Needle Bar Connecting Road, Price BDT 14,700/-

B/H Needle Bar Connecting Road
B/H Needle Bar Connecting Road

B/H Lower Scissor, 800A, Brother, Genuine, Price BDT 1050/-. B/H Rotary Hook, 800A, Brother, Genuine, Price BDT 14,000/-.

Fusing Machine Belt (96″ ^ 36″), Price BDT 13,000/-

B/S AD Timer Solenoid, Juki Genuine, Price BDT 5,800/-

Important Spare Parts and Price of RMG Sectors machinery

B/H Tension Release Solenoid Valve, Price BDT 62,250/-

V/A Shuttle Hook, Genuine, Price BDT 5,200/-. V/A Bobbin Case, Genuine, Price BDT 3,500/-,

B/S Button Clum Slide, Price BDT 3,750/-, P/M Paddle Sensor Regulator Asy, Ec-10, Price BDT 5,200/-.

T/N C/S Looper, Juki, Genuine, Price BDT 6,200/-.

C/M Clutch Set, Price BDT 1,800/-

B/T Rage Body, Juki, Price BDT 8,800/-

T/N Rotery Hook, Juki Japan PN-2261055, Price BDT 6,000/-

B/T AC Servo Motor, Juki Japan PN-400, Price BDT 26,800/-

Description of Short Word-

P/M = Plain Machine, B/H = Button Hole, V/A = Vertical Machine, B/S = Button Stitch , T/N = Two Needle, C/S = Chin Stitch, C/M = Cutting Machine,

Job Number for Order Costing in RMG Sector

Job Number for Order Costing in RMG Sector

The Job Number for Order Costing in RMG Sector is the most essential number to identify proper costing. When you confirm the cut to ship by job number, it’s will help to maintain every process smoothly. Maximum company has one and more units to execute the yearly performance.

The company faces difficulties when he executes the job number on specific orders. This is for your kind notification, as per the demand of merchandiser marketing team, creation of Job number will be done by concern merchandiser.

So, we share a technique for how to execute the job number at the company in order to maintain a symmetrical Job number, we hereby provide a detailed guideline as follows. Herewith the tops mean woven tops and the bottom means woven bottom.

The formation Job Code would be :

Job No. Identification formula in woven business

First, Orders of Woven Tops would be T ; Woven Bottom would be B.

Second , 4 digits code for specific for each job number. The number will start from 1001, then 1002, 1003…..

Third, 3 digits Buyers short code, which in below chart(Table:1)  given for the code for each buyer.

Forth, 2 digits code for year, where for the year 2020 is 20 then 2021 is 21.

At last, 2 digits code for Session i.e AW= Autumn Winter ; SS=Spring Summer.

Key Notes:

  • There is no Space or Symbols between the codes.
  • Duplication of Job number must be prohibited.
  • If any previous Job is submitted & locked, then an additional quantity received against the order, there should create a new Job number for the additional quantity.
  • In the case of a New Buyer, discussion with the concerned person is necessary to generate a new Buyer code for coordination.
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