Method of Calculating Cost per Minute of a Sewing Line

Question: How we can calculate the cost per minute of a garment sewing line in a very easy way? Show me an easy method of calculating cost per minute of a sewing line. ... asked by Masum

Cost per minute of a line is calculated only for direct labours. Direct labours like sewing operators, helpers, line supervisor and quality checkers.

There are two types of  Cost per Minute of a sewing line -

  1. Estimated cost per minute of a line and
  2. Actual cost per minute of a line

As you did not specifically ask which one you need, I am explaining both.

1. Estimated cost per minute of a line: 


To use this calculation your operators need to be salaried. The formula used to calculate the Estimated cost per minute

= Total salary of a line for one day / (Total minutes available*Line efficiency%)

To calculate the total salary of a line includes all operators, helpers working in a line. You can also include Quality checkers and line supervisors and feeder if they are not considered under overhead. So, you have to find the following three parameters to calculate the estimated cost per minute of a line.

  1. Total salary of a line for one day 
  2. Total minutes available 
  3. Line efficiency% 
Where Total minutes available = Number of total labours *Daily working hours *60

An example:

Total estimated salary of a typical line is INR 6000.00 and total manpower 20 of a 15 machines line and line efficiency 40%
Cost per minute of the line = (6000 / (20*480*40%)) = Re 1.56

2. Actual cost per minute of a line 

The formula used to calculate the actual cost per minute of a line

= (Actual salary for the day/ (Total garment produced * SAM))

So, you have to find the following three parameters -

  1. Calculate the actual salary of all operators and other direct labours working on the line in a day
  2. Total pieces made by the line
  3. Garment SAM of the running order

An Example: 

Assume that the total actual salary of a typical line is INR 6000.00, the line made 400 pieces and garment SAM 22 minutes.

Therefore,

Cost per minute of the line = (6000 / (400 * 22)) = Re. 0.68

Also Read: Actual Garment Production Cost – The way factory calculates it