<.3.2 Cut and Make cost (CM)

This value is calculated to estimate the cost of cut and make process of one garment. To calculate the C&M cost, we need two other factors, garment SMV and the CPM

SMV (Standard minute value)

                                                This term defines the time duration of a garment stitching process. The SMV for a garment is calculated in standard minutes and this value is calculated by the work-study of the sample room. There is special method to calculate this SMV. They use the GSD concept (General sewing data) to do this.
            The every operation of a garment is analyzed according to GSD and it gives time period to each operation of a garment. Once again these operations are analyzed according to the GSD codes and these codes describe the steps in an operation.

                               Furthermore;-
                                               The time for taking panels, the time for matching panels, the time for putting panels under the MC foot, the time for stitching panels, the time for put aside the stitched panels and the time for taking new panels-


                        The GSD codes also some kind of above mentioned thing and these codes are given a standard time allocation. There would be more GSD codes within one operation and we can take the SMV of that operation by taking total of each code. The total SMV of the whole garment can be calculated by taking the total of all the operation within the garment.

CPM (Cost per minute)

This the factory running cost of per minute. 

SAH (Standard Average Hours)

The average running time of the factory within a month

SAH=No.of runing machines×No.of working hours per month×efficiency

Let’s discuss the C&M cost through an example

                        The SMV of a garment is given as 3.6. This factory has two shifts per day and each shift has 8 hours. The number of running machines in the factory is 300 and the working days in a month 26. The labour cost and the other overheads of the factory is $ 20,000. What is the C&M cost of a garment? The efficiency of the factory is 70%.

                             SAH=300×26×8×2×70%

                                     = 87,360 CPM   

                                     = 20,000 ÷ (87,360×60) 

                                     = 0.00381$ 

                 C&M COST = 3.6×0.00381

                                     =0.013716$