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 Top Most Used 20 Industrial Engineering (IE) Formula
Powered By Textile and RMG Solution Visit:

01. Determination of SAM (Standard Allowed Minute)

SAM = (Cycle Time × Performance Rating) + Allowances

CycleTime 75
Performance Rating 75%
Allowances 10
SAM (Standard Allowed Minute) 1.10

02. Determination of SMV (Standard Minute Value)

SMV = Cycle Time × Performance Rating

CycleTime 30
Performance Rating 85%
SMV (Standard Minute Value) 0.43

03. Determination of Earned Minute

Earned Minute = Total Production X SMV

Total Production 1700

SMV 5.20
Earned Minute 8840.00

04. Determination of CPM (Cost Per Minute)

CPM (Cost Per Minute) = Monthly Factory Cost/Mothly Earned Minute

Monthly Factory Cost 12000000

Monthly Earned Minute 1120000
CPM (Cost Per Minute) 10.71

05. Determination of CM (Cost of Manufacturing)

 Top Most Used 20 Industrial Engineering (IE) Formula
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Cost of Manufacturing (CM) = SMV × CPM

SMV 5.5
CPM 10.7
CM (Cost of Manufacturing) 58.85

06. Determination of Daily Line Target

Daily Line Target = (Working Minute × Manpower × Efficiency)/SMV

Working Minute/Hour 600 Minute

Manpower 35
Efficiency 50%
SMV 7.8
Daily Line Target 1346

07. Determination of Individual Operator Target

Individual Operator Target = (Working Minute × Manpower × Efficiency)/SMV

Working Minute/Hour 600 Minute

Manpower 1
Efficiency 60%
SMV 0.25
Individual Operator Target 1440

08. Determination of Line Efficiency

Line Efficiency = (Line Output × SMV × 100)/(Manpower × Working Minute)

Line Output 2200

SMV 12.5
Mapower 60
Working Minute/Hour 700 Minute
 Top Most Used 20 Industrial Engineering (IE) Formula
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Daily Individual Line Target 65%
 Top Most Used 20 Industrial Engineering (IE) Formula
Powered By Textile and RMG Solution Visit:
09. Determination of Individual Operator Efficiency

Individual Operator Efficiency = (Line Output × SMV × 100)/(Manpower × Working Minute)

Line Output 1400

SMV 0.3
Mapower 1
Working Minute/Hour 600 Minute
Individual Operator Efficiency 70%

10. Determination of Production Cost Per Unit

Production Cost Per Unit = Total Production Cost/Total Production Pcs

Total Production Cost 72000

Total Production Pcs 1500
Production Cost Per Unit 48

11. Determination of Machine Productivity

Machine Productivity = Total Output/Total Machine

Total Output 2000

Total Machine 25
Machine Productivity 80
 Top Most Used 20 Industrial Engineering (IE) Formula
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12. Determination of Labor Productivity

Labor Productivity = Total Output/Labor (Manpower)

Total Output 1500

Labor (Manpower) 32
Labor Productivity 47

13. Determination of Machine Utilization (%)

Machine Utilization (%) = (Actual Machine Run Time X 100) / Total Time

Total Time 600

Actual Machine Run Time 400
Machine Utilization (%) 67%

14. Determination of Man to Machine Ratio (MMR)

Machine to Machine Ratio (MMR) = Total Manpower/Total No-Idle Machine

Total Manpower 4000

Total No-Idle Machine 2600
Man to Machine Ratio (MMR) 1.54

15. Determination of Monthly Factory Capacity

Factory capacity = (Working Hour × Total Worker × Working Day × Factory Efficiency × 60)/Avg. SMV

Working Hour 10
Total Worker 2500
Working Day 27
Factory Efficiency 55%
Factory Average SMV 5.5
Factory Capacity 4050000
 Top Most Used 20 Industrial Engineering (IE) Formula
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16. Determination of Cut to Ship Ratio

Cut to Ship Ratio = (Total Shipped Quantity/Total Cut Quantity) × 100

Total Shipped Quantity 4000000

Total Cut Quantity 4080000
Cut to Ship Ratio 98%

17. Determination of Cut to Ship Loss

Cut to Ship Loss (%) = [(𝑇𝑜𝑡𝑎𝑙 C𝑢𝑡 Qty.- 𝑇𝑜𝑡𝑎𝑙 Ship Qty.)/ 𝑇𝑜𝑡𝑎𝑙 C𝑢𝑡 Qty.] × 100

Total Shipped Quantity 4000000

Total Cut Quantity 4080000
Cut to Ship Ratio 2%

18. Determination of Total Financial Saving

Total Financial Saving = Number of Extra Pieces Shipped × Average FOB

Number of Extra Pieces Shipped 1000

Average FOB 4.5
Cut to Financial Saving 4500

19. Determination of DHU (Defect Per Hundred Unit)

DHU = (Total Number of Defects Found × 100)/Total Pieces Checked

Total Pieces Checked 1100

Total Number of Defects Found 85
DHU (Defect Per Hundred Unit) 7.73
 Top Most Used 20 Industrial Engineering (IE) Formula
Powered By Textile and RMG Solution Visit:

20. Determination of Pitch Time

Pitch Time = Garments SMV/No. of Operations

Garments SAM 9.8

No. of Operation 25
Pitch Time 0.39