We did everything on ink and pen with papers.Now everybody is getting from net like from your post. There are lot things that go into pricing a single piece of clothing. FOB means “free onboard”. which is contained by garments specification sheet. The garment industry needs to keep total cost of inventory low, which comprises total ordering cost and total carrying cost. It’s a helpful information about whole processing of RMG. A smart merchandiser need to know what are testing parameters of the regarding buyer. Hence let us take some following styles as examples which are in regular use. So, on the basis he should calculate ship mode charge added into costing sheet. Mention all the terms used in apparel costing. So, I will present what are the factors related for the garments costing. Direct Cost (Fabric and Accessories cost) He must be careful below points in the following. A smart merchandiser thinks how to utilize save money & maximum profit of a company. Absorption Costing: Under the ‘absorption costing system’ all fixed and variable … Mention different terms used in garments costing. The following two tabs change content below. Without profit a factory cannot develop or sustain in the market. Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are woven. Alternative factory develop (if support emergency). A wash can change garments looks & move into a new product. Apparel/Garments costing Methods for export order 1. The main costing methods available are process costing, job costing and direct costing. He should think & best profits calculate of a factory or company. In this case, the exporter quotes the buyer with a price that covers FOB cost, insurance cost, and freight cost. Send email: Thank you! 1. Garment merchandisers have done this job by negotiating with the buyer. Actually costing is nothing but a summation of different components price of a garments. We use cookies to ensure that we give you the best experience on our website. In this circumstance, the garments manufacturer quotes the buyer a proposed price which covers the making cost, trimmings, and accessories cot of a garment. Remember a cost sheet is a statement, which shows the various components of total cost of a particular product. So, during costing stage a smart merchandiser must concern about embroidery productivity & need to developed alternative embroidery factory. As there are many different styles in garments, it is not possible here to discuss all the styles. May God bless you writer. Thank U for Ur efforts. Merchandising Costing: Garment costing is the important issue for an export order execution. This type of costing is used primarily by make-to-order production environments. Buyer determined what type of shipment mode. What is the difference between Denim & Jeans ? Garments buyers are now invested a lot of money to satisfy the customers by providing the right quality products. I think one important terms is missing that is – test. CIF means “Cost, insurance, and freight”. Show apparel costing terminology list used in garment export-import business.  He must analysis cost factors of a garment. Garment Industry is looking for a sustainable cost analysis solution which can provide actual cost finished goods and to identify whether the industry gained profit out of a particular style or not. A smart merchandiser calculates the production output that particular style. If it is a garment … Whole Business is fully depends on it. The types of fabrics are: Woven / knitted fabric, power loom /automatic loom fabric, fibre / yarn Apparel costing in the garment making process is one of the most complex procedures. Seam length and the Here is a specimen format of a cost sheet. Block pattern. Your email address will not be published. A smart merchandiser gets clear idea CM from SMV & related cost of a factory. Yarn cost, 2. Currency is an important matter in the garments manufacturing sector. If anyone want to be a successful merchandiser then at first what he have to do?? Please help me. Finally, a smart merchandiser will investigate & best sourcing for this fabric. ... garment. Job costing (variable costing) considers the materials, labor and overhead costs and maps them to a production process to determine the cost. Product Item. How many parts of a sample. And, he also knows how to source. He must to know below points during souring the fabric. Pre-production process like the order processing, product development, pattern making and pattern grading, and post-production process such as … Costing is the system of computing cost of production or of running a business, by allocating expenditure to various stages of production or to different operations of a firm. I have to prove myself in RMG sector that’s why i need a job …..sir can u help me ? When it comes to garment manufacturing, there are three main costing methods or strategies used, namely, direct costing, absorption costing and activity-based costing (ABC). Standard Costing. Required fields are marked *. Mention some important terms in garment costing. Here, all the other required materials sent by the buyer to the manufacturer. As a result, the CIF cost is higher than the C&F cost. Ltd., Tiruppur, India. The development of design, production execution and sourcing, selling the merchandise to customer and displaying the merchandise at retail shop, these are … Textile costing includes all the activities like purchase of raw materials and accessories, knitting fabrics, processing and finishing of fabrics, sewing and packing of garments, transport and conveyance, shipping, overheads, banking charges and commissions, etc. During garments costing, there are a lot of garments costing terms that have come into consideration which are mentioned in this article. Industrial single needle lock stitch machine (Taking, China) Sewing all types of … Buyer specification about the definite garments means direction about garments making, print, embroidery, wash, etc. If you don't see the email within a few minutes, check the spam/junk folder. thank you for your efforts. The costing of garments varies depending on the process needed to make garments. He must need to know below important points. CMT means “Cut make and trims”. Am so happy for readed ur page its very use full me ,thank you somuch. Introduction to costing Cost components Introduction of costing tools Costing techniques in Apparel industry Cost process flow Costing sheet Calculation of Gmt/Kg ratio 2 GEC 3. Order acceptance: If manufacturer is exporting the garment, the costing is base of the business. How to improve garments productivity by motion study? He must know below important points. b) A proto type garment. This article has presented eight important methods or techniques of textile and apparel … Yarn cost: Yarn cost is an important mater in garments costing. He must takes responsibilities trims sourcing where are the best price. Product costing methods are used to assign cost to a manufactured product. As a garment merchandiser, you should explain your total discussion to the buyer in all possible ways by keeping those matters in your way. Buyer negotiation or buyer handling is very important in the readymade garments sector. Garments costing There are two types of garments, namely woven and knitted garments. It might look easy to design a clothing line, sell it to retail stores and watch happy consumers buy everything you produce. He should vast knowledge about washing process into garment. Raw material process costing is already discussed above. ‘ Test is more effective issue to creating the costing. A finished goods manufacturing company if it has knitting, dyeing and garments section then its costing for a product will be different from single manufacturing unit like spinning, knitting or dyeing. Merchandiser (Costing) Perlei Textiles Pvt. General Terms in Garments & Apparel Sector. Costs of production or service rendered differ from industry to industry. This site uses Akismet to reduce spam. The total cost of inventory is least on a quantity known as the economic order quantity or EOQ (Hergeth, 2002).In dependent demand, where the quantity to be sold per year is known, it is important to order … In garment manufacturing a typical pre-production process is divided into five steps: Five steps of the pre-production process in clothing manufacturing Costing of a garment. Types of Samples in Garment Industry. Unit 6: Garment costing and pricing methods ... from industry to industry. “Lycra Breakage Cause and Preventive Measure”. So, a smart merchandiser should think & dimensional oriented about trims & sourcing. So, he should maintain commercial charge to add during costing stage. In Garments Industry, Costing is an Important part of a merchandiser. During garments costing, the garment merchandiser added profit (%) here for the factory or buying a house with all the others cost. Garments Costing for Export Order: For fixation of a garment price of export order followings types of costing should be observed carefully by-1. Generally, SMV indicates the time taken to make garments by the workers using the right types of machinery. If you continue to use this site we will assume that you are happy with it. Mayedul Islam is working as a Sr. Merchandiser in a reputed Buying House. 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The role of merchandiser is very crucial and demanding in fashion industry. Fabric description is the very important part for the costing because it is depend on fabric nature & it will changeable during wash & it can be measurement discrepancy after making garments. So, he must be careful below points during costing. help me please. CMT is also a pricing term in the apparel industry. Email: jeevankadam16@gmail.com. It’s a helpful information! Mention various terms used in garment pricing. Accurate yarn … He must to know below important factors for effective garments costing. Notify me of follow-up comments by email. The types and requirement of samples will vary from buyer to buyer, but in industry there is a particular order of sampling process followed, the stages and purpose of sample may be same but the terminology used may be different and it totally depends upon buyer. According to relation with production. An embroidery factory must be near in garments manufacturing. Garment costing ppt 1. Now what can i do?? If garments are made by avoiding unnecessary processes then it will be very effective for garments costing. Sample type & fitting. Some garment factories prefer buying yarns instead of purchasing finished fabric. He must know below points during costing stage. The buyer will automatically choose from your proposed options. Accurate yarn cost helps to earn maximum profit from a garment export order. Different types of industries require different methods of costing methods which suit to their industry. A smart merchandiser must know how to add profit% into costing stage. During costing a merchandiser must careful below points. Men’s Printed Polo shirts, 3. Each of these methods apply to different production and decision environments. A Garment costing will bear approx: 35% to 45% price of a total garment cost. Graded pattern. Overhead cost means the cost of each operator required to make a garment. Quality is the ultimate point of a garments product. So, a smart merchandiser need follow below points when he will source fabric & advice to buyer. cost needed to make a garment. He should think many important factors for garments costing because he is the proactive person for profit earning. How to calculate floor capacity in Garments Industry ? T-shirts, sweaters, undergarments, pyjamas and socks are knits. Job costing is suitable to industries which manufacture or execute the work … … Now I would like to discuss about general costing process for an export order in the garment industry. For this reason every renowned apparel organization has won, costing department, which help the merchandising … ... types are more appropriate for some products and fabrics than others. Costing for the Fashion Industry. How to Control Moisture in Garments Sector . The main product costing methods are: Successfully Subscribed. He needs to discuss with management what profit % to add into costing sheet. Your email address will not be published. sir what the most important thing I have to know to be a merchandiser.in that field I want to establish myself. A Garment costing will bear approx: 35% to 45% price of a total garment cost. Buyer specification about the definite product. I complete my graduation on merchandising. Garment Costing 1 Prof.Dr.S.Kathirrvelu 2. Mention different apparel costing terminology used in the garment export-import business. Costing is the deciding factor of the prices and the important thing to be followed in all important stages like purchase, production, marketing, sales, etc. Process cost means the total amount of processing (cutting, sewing, finishing, etc.) Different types of merchandising in fashion industry can be described in following way. Wholesaler to viscous jacquard fabric and pollster weightless fabric . In CMT manufacturing, apparel buyer pays the manufacturers for the cut-make-trim process. Men’s Solid Pique … He follows below points. A smart merchandiser need to more analysis about consumption. What do mean by Handloom, Lab Dip, Strike off, and Knit down? If you read this article attentively then you can easily answer the following questions in the interview: I want job in garment feild,can u help me? On the basis of cost of manufacturing including wages, operating expenses and transportation and freight charges, and profit margin of company, merchandiser claims the cost of unit garment. But I have no experience and also no reference. Garments or apparel or clothing costing is very important in garments merchandising. Shipping condition affects on garments costing. Costing of a garment is a process of calculating and combining raw material costs, trims, packaging, labor, shipping and operating … Job costing and process costing are the two basic methods of costing. And, he should know what are testing parameters & testing charge of a garment. Different terms related to garments costing are mentioned in the following: Yarn cost is an important matter in garments costing. Mention different apparel pricing terminology used in the apparel import-export business. Cost of making calculation is the important part of a garment. Garments Costing Factors In Apparel Industry. The cost calculation in the textile industry … He should be careful about artwork. Print factory must be near in garments manufacturing otherwise it can be production hamper & costing will be increase. Mr. Wheldon defines costing as the classifying, recording and appropriate allocation of expenditure of the determination of the cost of product or services or process. SMV varies garments to garments, style to style, factory to factory. In this case, the exporter quotes the garment buyer a price that includes all costs up to and including the delivery of goods aboard an overseas vessel. Why need pilot run before bulk production in garments industry ? Fabric consumption is one of the most important & vital role for garment costing. Common Interview questions in a garments Industry ? In the garments factory, you may find that many people used to the SAM – Standard Allowed Minute which is the same as SMV. Costing system mainly describe how the cost of final product is fixed by the company or top management. Final costing:- It is an exact calculation by the costing or import department; Using actual figures for fabric, accessories and labour cost; Costing department uses-a) Merchandiser work sheet. A smart merchandiser must know how to add commercial charge to import & export any goods from aboard. He has great passion in writing different articles on textile and Garments specially on Merchandising and Garment Washing. d) A detailed cost analysis is made for each garment the final cost is plotted on a “cost … Here, the exporter quotes the price by adding fabric cost, accessories cost, CM (cost of making), overhead cost, commission, C&F commission, and transportation cost from factory to port. How to calculation CM in Garments industry ? Shipment of products can be done by using sea freight or air freight which is totally depends on the buyers. Exelent.20 years before this was impossible to find. Costing: Costing is a very familiar word in Garments Industry and can be said as a heart of merchandising.It is also known as Cost sheet, Budget Sheet, BOM (Bill of Material) etc. A smart merchandiser must be careful about embroidery because sometimes sample has critical embroidery design & production will be slow. What is the difference between lock Stitch Machine & Chain Stitch machine ? Garment costing varies depending on the number of garments. Garments manufacturer pays their worker salaries from this CM. A smart merchandiser must be careful about trims what will use in garments. Costing is the very important & crucial part of garments sector. Sometimes, shipment can be sea or Air. A smart Merchandiser must know what type of shipment mode? This is one of the most common costing methodologies employed by manufacturing … He must follow below garments testing parameter during costing stage. c) Production pattern. A smart merchandiser need to more analysis about consumption. Based on the present apparel industry, garment manufacturing processes are categorized as: ... Costing of garments is the cumulative cost of raw materials, direct labour, as well as, direct and indirect overheads. Product costs are the costs directly incurred from the manufacturing process. A smart merchandiser must know what type of print in sample & what is the print cost? Men’s Basic T-shirts, 2. The method of making costing will vary from style to style. How to calculate sweater costing in garments industry? Men’s Pyjamas, 5. So, he needs to add testing charge into costing sheet. Firstly, A smart merchandiser analysis & will get accurate information from factory in the following factors. Process cost, 3. … M u h a m m a d S a j j a d ( M e c h a n i c a l E n g i n e e r ) Muhammad_sajjad@yahoo.com Garment Costing Terms Used in Apparel Industry Different terms related to garments costing are mentioned in the following: 1. The overhead cost has a significant impact on garments costing. If a garment factory collects the order from a garment buying house or buying agent then he must have to pay them a commission percentage for the order. Ladies Nightdress, 4. The three basic categories of product costs are detailed below: I want to establish me in this sector. A smart merchandiser must know wash instructions in buyer reference sample. Kindly check your mailbox and confirm your subscription. Garment factories stitched garments in-house and source raw materials such as fabrics, trims and accessories. Two basic methods of costing is used primarily by make-to-order production environments lock Stitch Machine ensure we... Prefer buying yarns instead of purchasing finished fabric writing these RMG articles should know what type of print sample... Cost helps to earn maximum profit from a garment costing and process costing are the directly... Manufacturer is exporting the garment industry needs to discuss about general costing process an! Of garments costing, job costing and process costing, job costing and process costing are the best.. Garments industry have come into consideration which are in regular use for fixation of cost., the costing get accurate information from factory in the textile industry … CMT is also a pricing in... 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Important part of a garment export order in the garments manufacturing process is one of the most important & part. More analysis about consumption finishing, etc. invested a lot of garments, style to style factory..., namely woven and types of costing in garment industry garments 35 % to add testing charge of a garment export order for! And freight cost: garment costing because he is the ultimate point of a company, bed spreads,,. Buyer specification about the definite garments means direction about garments making, print,,. Ensure that we give you the best price you continue to use this site we assume. Off, and Knit down, sarees, bed spreads, blankets, towels and made ups are woven fabric... Embroidery design & production will be very effective for garments costing for export order execution to the.. The CIF cost is higher than the C & F cost this job by negotiating the. The C & F cost to satisfy the customers by providing the right quality products execution... Industry, costing is base of the most important & crucial part of a product... Very crucial and demanding in fashion industry can be production hamper & costing be... Embroidery because sometimes sample has critical embroidery design & production will be increase total amount of (. Parameters & testing charge of a total garment cost m really excited about writing RMG! Of product costs are the best experience on our website the various components of total cost a. Industries require different methods of costing is used primarily by make-to-order production environments top... This case, the exporter quotes the buyer to the manufacturer process into garment testing of... Detailed below: costing is used primarily by make-to-order production environments might look easy to design a clothing line sell... Company or top management to style, factory to factory of making calculation is the cost. & costing will be increase can not develop or sustain in the garment export-import business matter. 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Merchandiser should think & dimensional oriented about trims what will use in garments sector! I ’ m really excited about writing these RMG articles Machine & Chain Stitch Machine, costing an... Spam/Junk folder to prove myself in RMG sector that ’ s a helpful information about whole processing of RMG 35. Responsibilities trims sourcing where are the factors related for the garments costing and demanding in fashion.! Used primarily by make-to-order production environments pollster weightless fabric & best sourcing this... Where are the factors related for the cut-make-trim process test is more effective issue to creating costing... Fabrics than others of clothing you produce cut-make-trim process by using sea or. Is fixed by the buyer before bulk production in garments, it is not here! 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