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Mesauring Efficiency PDF
Mesauring Efficiency PDF
&
Garment Manufacturing Process
Measurement of Sewing Capacity & Efficiency
Reference Material
Developed by
Sewing work is done by operator using a sewing machine; capacity of one sewing
operator is 60 minutes per hour maximum. So if a factory has 100 sewing machines
8 hour (480 minutes) shift per day, then capacity of that factory would be 100 x 480
= 48000 minutes per day. This is considered theoretical maximum capacity, as it is
assumed that operators are capable of working complete 60 minutes per hour,
realistically which is impossible. There are several factors like operator efficiency,
absenteeism that influences actual capacity. If the average efficiency of operator for
that factory is 90%, then capacity would be 43200 (48000 x 90%) minutes per day. If
average absenteeism for that factory is 15% then actual capacity would be 36720
(43200 x 85%) minutes per day. If a blouse style of 20 SMV is planned to be
produced then we can expect 1836 pieces produced per day provided there are no
other time loss.
Efficiency Measurement
In macro measure the above may be sufficient but while analysing the cause of
inefficiency or underutilisation in micro terms we need to take care of various factors
thus various measures. Although above measure tells us 1600 minutes (9600 –
8000) was lost by the line during shift hours but we do not know the break-up. How
Contracted time
As it says it is time in contract of employment. It is measured usually hours x by
number of operators to get total hours potentially available to factory or department.
Used in capacity planning and calculation of absence as %.
Attended time
Time needed for calculation of efficiency and utilisation. It is usually the time
operator spent in factory not forgetting to take away any lunch break.
(Contracted hours – absence) = (shift hours – lunch break – tea break) = Attended
time. Bit more complicated. Usually lunch break is excluded as per your calculation.
Tea break is totally dependent upon company policy i.e. do they remove it from the
working day. In UK it is usually included in attended time.
It is usually calculated for both individuals and lines. Individuals for calculating
utilisation and performance (attended – off standard). Line for calculating section
efficiency and utilisation
Off-standard time
Off standard time is that time utilised on performing tasks to which SMVs are not
allocated. Alternatively an operator earning SMVs is working ‘on-standard’.
Utilisation is a measure at how well the manager and supervisor control the section
and keep operators working i.e. “on standard”. In most apparel manufacturing
factories most operators are on some form of incentive payment whilst they are
doing the job for which they are trained and equipped. They are then said to be ‘on
standard’. If they come off incentive or ‘Off standard’ then they will have no financial
incentive to work hard (Chuter 1998). It is calculated as a percentage of operator
attended time (utilisation) and reported in different categories, although the exact
categorisation varies but principal categories are wait for work, machine breakdown,
unmeasured work, repairs and rejects, sample making, undergoing re-training, work
study.
Chuter, A.J., 1998b, Introduction to Clothing Production Management, second Ed, 1998,
Blackwell Science Ltd, pp 19-20
It is usually calculated for both individuals and lines. Individuals for calculating
utilisation and performance (attended – off standard). Line for calculating section
efficiency and utilisation
On-standard time
This is the actual time worker spent on productive work. This is calculated as the
difference between attended time and off-standard time. This should be obvious and
is used in calculating operator performance
Utilisation
It is the time spent on productive time out of total attended time. It is the percentage
of attended time working earning Standard Minute Values [SMV].
SMV Earned
It is the measure of work done by operator. It is calculated from output from an
operation generated in attended minutes and SMV of the operation.
Efficiency
It is primarily a measure of the effectiveness of the manager and supervisor and as
such is best applied to sections / departments / factories and not the individual
operator. It is calculated daily. Efficiency is directly related to both operator
performance and the utilisation of the operator.
It is usually calculated for a line and not really relevant to the individual unless
incentives are paid on efficiency and not performance.
This has to be calculated for individuals as it is relevant to pay unless incentives are
paid for lines or teams. Sometimes aggregated to a total for lines taken as KPI.
Excess Costs
Excess costs are those payments to workers that are not direct incentive payments
i.e. any off standards, policy or make up pay. The only reason for expressing it as a
% of total labour cost is that many companies have a budgeted level that must not
be exceeded and is often a KPI for managers and supervisory staff
This has to be calculated for individuals as it is relevant to pay unless incentives are
paid for lines or teams. Sometimes aggregated to a total for lines as KPI.
Factory parameters:
• On standard pay paid at Rupees 0.50 per minute (local salary agreement)
• Off standard pay = 15 Rupees per hour (local salary agreement)
• Guaranteed hourly salary = 15 Rupees (local salary agreement)
• Excess costs = off standard pay + make up pay + overtime pay
• Overtime premium paid at 1/3 of basic hourly pay, i.e. 1/3 of Off standard pay. (1/2 of
basic pay for weekend work or any overtime over and above 2 hours per day).
• Company rules on overtime are set in a way to stop operators deliberately coming in late
and then working overtime to hit target and drawing overtime premium. Additionally only
those who can “pay for themselves” and not cost make up pay are allowed to work
overtime. To pay overtime premium on top of makeup pay makes sms earned very
expensive. Additionally if supervisors need production from those who are not eligible for
overtime but know they cannot offer it to them will be encouraged to push the operators
during normal work hours.
Off-
Make Up pay
Off Std pay
Performance
Earned Off
breakdown
Over Time
On std pay
Utilisation
Employee
Employee
Operation
Overtime
Attended
premium
Contract
Re-train
number
Std pay
On-Std
Earned
Output
Excess
on std
SMVs
others
on std
name
SMV
Total
Total
work
Cost
time
time
time
m/c
pay
No
std
%
1234 Jeevani 480 600 120 0 60 0 0 60 540 o/lock1 500 0.60 520 260 15 10 0 0 285 96 90 8.8%
o/lock3 550 0.40
1345 Pushpa 480 420 0 20 0 0 0 20 400 collar 520 0.80 416 208 5 0 0 0 213 104 96 2.3%
make
1635 Malini 480 480 0 0 0 0 0 30 450 collar 350 0.60 210 105 7.5 0 7.5 0 120 47 94 12.5%
topsew
1710 Doreen 480 480 0 0 30 450 0 0 0 collar 0 1.10 0 0 7.5 0 35.5 77 120 0 0 35.8%
stand
Total 1920 1980 120 20 90 450 0 110 1390 1920 1146 573 35 10 43 77 738 11.9%
Absenteeism = (1920-1860) x 100/1920 = 3% (for absenteeism calculation overtime, if any should be deducted from attended time)
Line efficiency = [(1146+154)]/1980 x 100 = 66%
Jeevani is the only person to work overtime as she is the only one who meets company overtime policy criteria. She has attended the
whole day and is not costing make up pay. Pushpa was one hour late (only attended for 420 minutes) and caused Malini to wait for
work and is not eligible for overtime & both Malini and Doreen have drawn make up pay to take them to the minimum wage.
Jeevani spends off std time of 60 minutes therefore earns Rs. 15, spends 120 minutes on overtime therefore earns Rs. 10. SMV
earned 520 minutes, so On-Std pay = Rs. 260. Total pay is Rs. 285. Excess cost = Rs. 25... Therefore excess costs =(25/285) x 100
= 8.8%
Malini attends for 8 hours, therefore she is entitled for a minimum 8 x 15 = 120 Rupees. She earns 105 Rupees on standard (210 x
0.50) + 7.5 Rupees as off standard (30 minutes) making total of 112.5 Rupees. As she is guaranteed 120 Rupees therefore 120 –
112.5 earned = 7.5 Rupees make up pay to minimum.
Doreen is under retrain and therefore not on standard. She is working on her new job and is therefore earning std minutes for work
produced. She produces 140 pieces = (140 x 1.10 = 154 sms) which are paid at 77 Rupees (154 x 0.50 = 77). She has 7.5 Rupees
off std pay. But as she is entitiled for Rs. 120 minimum for 8 hours therefore make up pay = 120 – (77+7.5) = 35.5 Rupees.