Lecture 10

1. Lecture 10 • WO details • Package • Details • Garment Details

2. What is in package? • Product description • Raw Material Details • Accessories description • Communication details • Delivery instructions • Payment terms • Delivery schedule • Price • Any other instruction

3. Package Reading • Different buyers have different ways to describe product • People use different terms • Different abbreviations are used • Important information may be in the extreme corner • Some thing may be missing

4. Cares in reading description • Read it collectively • Make its photocopy • Read it twice • Note important points • Ask for any term which is not understandable • Do not assume • Do not rely any other information other than buyer • Note every important point

5. Own information data • Make own information data • Nothing should be missing • Circulate all information to concerned departments • Do not hide any information • Do not exaggerate • Intimate buyer about your understanding from the package

6. Lecture 11 • Costing of Textile and Clothing

7. Costing • ---one of the main jobs of a merchandiser

8. Fundamental Requirements: • Product details • Rates of different raw materials • Rates of different processes • Conversion costs • Rejection rates • Yield % • Over Head cost • Any hidden expenses • Profit margins

9. Cares in Costing • Accurate calculation of RM • Different rates at time of production (not of today) • Conversion cost of different process of different firms • Consultation with production department • No missing of any process and material

10. Lecture 12 Cost Sheet • Cost Sheet

11. Direct Cost • Raw material • Fabric • Yarn • Knitting/weaving • Dyeing or printing • Wastages

12. Accessories • Stitching Accessories • Stitching thread • Labels • Patches • Buttons zips • Strings • Cords

13. Packing Accessories • Poly bags • Tickets • Bands • Cartons • Price tags • Hangers • Any other material

14. Conversion Cost (Stitching labour Cost) • Direct • Indirect

15. Direct Cost • Wages of operators • Piece rates • Pressing etc

16. Indirect Cost • Salaries • OH • Depreciation • Taxes • In land transportation • Bank charges • Utility Bills • Rents • Any other like leasing etc

17. Costing Process • One of the main job of the merchandiser

18. Lecture 13 Cares in Costing Process • No assumptions • Every thing should be verified from person concerned • Calculate with lot of care • Re-check calculation • Take help from seniors and juniors

19. Develop Cost Sheet

20. Four Parts of Cost Sheet • Description of product and details of buyers • Garment measurement • Calculation of Raw Material • Adding of margins and final price determination • What should be in product description

21. Buyer Details • Address • Person concerned • Department • Ref • Code • Date • Order no • Article no • Name of representative • Division

22. Product Details • Fabric (GSM, colors texture etc) • Quantity • Garment style • Delivery dates • Special instructions • Any other information

23. Measurement • Garment measurements • Margins, before wash or after wash etc

24. Raw Material Calculation • Fabric consumption (there are three ways to calculate consumption) • Cost of accessories • Conversion cost • Cost of printing • Cost of embroidery • Any special finish ] • Packing cost • Freight • Any other material required

25. Pricing • Keep in view: policy of company • Market situation • Margins percentage • Demand and supply situation • Any other consideration • Give price keeping in mind the negotiating factors

26. Lecture 14Raw Material Calculation • With the help of GGT or any other plotter • By making garments using patterns • Just by calculation

27. Manual Calculation • You need: • garment specs • GSM • Fabric width and length • Fabric quality level (faults percentage ) • And finally you should know how to calculate

28. Fabric Calculation • Garment are calculation

29. Garment Area Calculation • Length • Width • Margins • Folds • Shrinkage behaviors • Washing affect

30. Main body • Chest *Length *2

31. Arms area • Arm length *(arm hole+ arm opening)* 4

32. Trousers • (Waist band + leg opening )* 2

33. Consideration in manual calculation • Folded areas • Margins • Grain lines • Pattern setting margins

34. Fabric other than main body • Pockets • Pocket lining • Loops • Badges • Flaps • Collars • Cuffs • Any other

35. Relationship between area and GSM • For knitted we have to calculate finally in kgs fabriuc required for certain garments • For woven we need in yard or meters required

36. Knitted Fabric • Fabric width • Dyeing loss • End loss • Grain alignments

37. Woven Garments • Length of than • Width of fabric • Waist of ends • Pattern margins

38. Example • Calculate fabric required for 1000 garments • From the given data

39. Knitted shirt (all in inches) • Length 28 • Waist band 2 (folded, included in body length) • Arm length 23 • Arm opening 5 • Arm hole 10 • Cuff height 2 (folded, not included in arm length) • Fabric GSM 250 • Rib GSM 350

40. Lecture 15Sampling • Highly significant • First step for orders • Orders depends upon better sampling • It has a big cost • It needs high skills and technical knowledge • It seeks a focused intention

41. Sampling mechanism • Customer • Needs development • For market survey • Sample shoot • Sale man sampling • Quality assurance purpose • For testing

42. Cares: • Samples are produced but production becomes an issue • Sampling is a big cost • Sampling always in hurry • “we need it yesterday” • Records maintenance during sampling

43. Types of sampling

44. Style Sheet • First of all the Style Sheet (also called Bill of Material BOM) comes from buyer for initial working on price & style. Along with that delivery details & quantities are also advised by buyer to make factory work.

45. Proto Type Sample • First of all it’s Proto Sample, where the buyer want to see the basic style. Depending on the buyer you can use all things available if not actual. Most of the time Price is quoted to buyer once Package is receive from buyer, because package carry all the details of fabrication & accessories.

46. Pre Sales Man Samples (SMS) • Since Sale Samples (SMS) are important for meeting & placement (Quantities) point of view (because most buyers see Sales Samples in meeting before placing orders) so some buyer required Pre SMS before SMS it self.

47. Sales Man Samples (SMS) • Once pre-sms samples are approved by buyer (most of the time with comments), buyer ask for sms for meeting. Normally dozens of styles are demanded by buyer, while each style might have more that 1 color (normally 3-4). • Actual accessories & fabrication is used for SMS & normally one size is made for that like M (out of S, M, L, and XL). • Since it’s a large quantity, mostly buyers pay for sms & use their own courier A/C (DHL / FedEx) to dispatch those samples to buyer.

48. FIT • Once meeting is held & quantities are placed with factory FIT samples is demanded by buyer to see the garment’s appearance in actual. • Normally buyer demand M size for FIT sample • If rejected, factory needs to re-submit FIT to buyer to before proceedings.

49. Size Set • Once FIT sample is approved Size Set is demanded by buyer to check if the correct specs are being followed in all the size range. Some buyers demand Paper Patterns as well to review specs of size set. • Size set cover all the sizes in actual fabrication, in one color.

50. Pre-Production Sample (PPS or PP) • Once the FIT & Size set is approved Pre-Production sample is asked by buyer for the final review & production go ahead. PP is the most important sample & factory cant start production until the PP is approved coz buyer has the right to change any thing in style at this stage & demand re-submission. • Once the PP is approved it is sealed with some comments & specs & forward to the production because all the production is based on PP sample. • If rejected, need to resubmit accordingly.