1.

Factory Efficiency%
Factory efficiency indicates how efficiently sewing lines is run in a factory. This indicator is
important because capacity planning of the factory and projected garment making cost is done
based on factory efficiency. Factory efficiency includes all lines minutes produced and total
hours attended by direct labor in sewing floor. Target factory efficiency varies based on the order
quantity. For the detailed calculation of efficiency refer to how to calculate efficiency of a
production line or batch? For factory efficiency calculate total minutes produced by all lines
and total minutes attended by all lines. Factory efficiency% = (Total minutes produced X
100)/Total minutes attended.

2. Man to Machine Ratio:

When it is factorys Man to Machine ratio (MMR), every employees of the factory is considered
under manpower. So, Man : Machine= Total manpower: Total sewing machines available in the
factory (machines those are in use). For example, if a factory has 500 sewing machines and total
manpower of the factory is 1100 then man to machine ratio =1100:500 OR 2.2. This ratio varies
product to product and on organization structure.

3. Cut to ship ratio:

This is a ratio of total cut quantity and total shipped quantity of an order. This indicator is
measured order wise and monthly shipped orders. To keep buffer (for damaged, defective
garments) factory cuts extra pieces than order quantity. For example: factory received an order of
20000 pieces, cut quantity 20200 pieces (1% extra cutting) and total shipped quantity 20000
pieces. Cut : Ship = 20200:20000 = 1.01. This indicator is measured to control surplus quantity
after shipment, reduction in extra cutting and damaged garment. Target Cut to ship ratio is 1.

4. Order to ship ratio:

Buyer expect to receive full quantity from supplier that has been ordered. This is most important
factor that buyer uses for vendor evaluation. This indicator is calculated as = Total order quality/
Total shipped quantity. Target of Order to Ship ratio is always 1. It is good if factory can ship
higher than order quantity (only if buyer accepts extra quantity).