Calculate the CM of Garments


To find out the CM of a item we need the following things:


  1. Working Hour Per Day…. Suppose – 8 hrs
  2. Working Day Per Month….. Suppose – 25 days
  3. Hourly cost of a Worker (WC)
  4. Hourly cost of Machine (MC)
  5. Productivity of The Item……. Suppose – 200 pcs with 25 m/cs & 10 helpers


Calculation of Hourly cost of a Worker:


For this we need the following Information:


Collect the 06 (six) Monthly total expenditure of the factory with factory rent, commercial cost, electricity bill, water bill, transportation, repairing, worker & stuff wages etc. And from this find the Avg. monthly cost of the factory. Suppose- 50,00,000/-Tk

Find the total Number of worker (Only Operator & Helper) present into the factory. Suppose- 300


                                                   Total Avg. Monthly Cost

Hourly Cost Per Worker= --------------------------------------------------------------------

                                    Total Worker x Working Day Per Month x WH Per Day



Calculation of Hourly cost of Machine:


Find out the quantity of sewing machine. Suppose- 200 m/cs


Find out the Purchase cost of all type of sewing machine & the minimum lifetime of the machine. Suppose- 1,50,00,000 /-Tk for 3 years lifetime


                                                              Total Purchase Cost

Hourly Cost Per Worker= ------------------------------------------------------------------------------------------------------

                                      Total M/C x M/C Lifetime (in month) x WD Per Month x WH Per Day


                                       WC x Rqd. m/cs + Hourly cost M/C x (Opt. + Helper)

COST OF MAKING (CM) = --------------------------------------------------------------------------- x 12

                                          Production per Hr x Currency Conversion Rate

                                 = $ / dozen


However, normally at present (after starting the new salary scale)in Bangladesh we calculate the CM of any item consider the overhead sewing machine cost 1200 tk to 1400 tk/day that means $16.216 to $18.92/per day for a non-compliance factory.


For the a compliance factory the per day machine cost will be 1800 tk to 2100 tk ( $24.32 to $28.37)

SO, if the an items produce 1600 pcs per day using 25 machines then the CM will be 

= Overhead machine cost X require machine / produce quantity X 12 / $74
= 1400 X 25 / 1600 X 12 / 74

= $3.547/DOZ