3.<.2.1Fabric costing

      They calculate the fabric cost per a garment. To calculate the fabric cost first of all they have to calculate the garment fabric YY (yielder per yard). This is the fabric consumption of a garment and measured by yardage.

                    The following equation shows how is the fabric costing is done.

                                         Fabric cost=Fabric YY×Unit price

                   (the unit price is the price of fabric yard.)

How to calculate the fabric YY

                                     The fabric consumption of a garment is given as an average value for all garment sizes. This fabric YY is calculated by the CAD room where they draw a special marker to find the fabric YY for further processes. Finding the fabric YY of a garment in particular style is very important at the costing stage.

 Before calculating the garment fabric YY, they have to create a marker with good efficiency.    

                                                     To draw a marker, the marker planner needs all patterns of every garment from each size and also the cutter must. The cutter must show how many types of fabric should be used to produce this garment and the marker planer has to create the marker for the number of fabric types in the cutter must document. All the details about the received patterns are included here and they are sorted out by the patterns reference numbers which are changed at each developing stages. When the marker planner inserts the patterns to the Gerber system, he selects the patterns to the related reference number and

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3.1.2 Costing

 Fabric and Trim Costing

                        Costing is a process to analyze the price of the garment which the factory hopes to sell to the buyer. There should be a good knowledge of the garment producing in order to do a good garment costing. Mainly costing is for calculating the expenses incurred for the garment production.

And also the costing process should consider about the other related things such as transport, purchasing, other overheads in addition to the production process.

                        Before the costing process, factory has come to an agreement with buyer on the payment term that they intend to use during their business. Most of the time they tend to select the FOB term for the convenience of both the parties.  So the garment cost is also calculated according to the FOB term and the final FOB is given to the buyer as the garment price.

When costing a garment order there are two types of cost affect to final garment cost.

•  Direct cost:                  Mainly affects the raw material cost for the direct cost. In addition to that production cost,- cost for running machines, maintenance, power, fuel and other utilities. Then anther portion for workers’ salaries. Finally for the wastages.

• Indirect cost:                     
                 Indirect cost is for the expenses, like travelling, telephone, couriers, legal issues and taxes. Then finally depletion of machineries and other sources.

The profit of the factory also adds to this cost and they can increase their profit by adding some allowances to these figures.  The limit of adding buffers or allowances to this costing, is mainly depends on the quantity of the order and the garment FOB that buyer requested.

The garment FOB is included with following factors.

                                                        I.            Fabric cost                                 

                                                      II.            Trim cost                                  

                                                    III.            Labour cost                     

                                                    IV.            Profits   

In the BIA there is a special computer application used for calculating the garment FOB. They only have to input the fabric and trim YY. Other details are automatically inserted through the system data base.