Why Do We Need to Measure Man to Machine Ratio in Garment Industry?

Question: Why Do We Need to Measure Man to Machine Ratio in Garment Industry? ... asked by Ramesh.

OCS's Answer:

Man to machine ratio is considered one of the key performance indicators of a garment manufacturing company. Through measuring the MMR ratio, factory management assesses how many personnel are employed per machine. This ratio gives a clear indication of the indirect cost percentage on the direct labor cost of a company.

Man to machine ratio (MMR) analysis is done to control overhead cost. As each employee cost to a company how minimum their salary is. Note that different factories may have different MMR based on the factory size.

Factories that measure this ratio and use it to control cost have a benchmark man-to-machine ratio.

When MMR increases in a particular month, garment factories check where manpower increases.

Manpower may increase in sewing floor such as maker man, pressman and helpers or number of staffs. 

The department head needs to confirm if that additional manpower is required permanently or requirement is style base. According to that new MMR is updated.

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