Ha-Meem Group

Audit Department

How to Calculate Cost Per Minute (CPM) of a Sewing Line

in Costing

CPM means cost per minute; I mean cost for every minute. CPM of any garments sewing line
means cost for every minute of that sewing line. CPM may be for sewing line, sewing floor or
whole garments. Generally CPM calculate for sewing line in garment industry. To calculate cost
per minute of any sewing line, then you have to find out total cost of direct labors for that sewing
line. Direct labors like sewing operators, helpers, line supervisor and quality checkers. CPM
calculation in sewing line is a common and most important task for textile engineers / industrial
engineer. Because maximum earnings depend on it. But it is not an easy task that we have
normally thought. An industrial engineer has to do this task by maintaining various terms and
conditions. As its importance in readymade garments sector today I will calculate cost per
minute of a sewing line with example.

Fig: Sewing line in garment industry

There are two types of Cost per Minute of a sewing line:

1. Actual Cost Per Minute (ACPM) of a line and

2. Estimated Cost Per Minute (ECPM) of a line

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 Ha-Meem Group
Audit Department

How to find out Actual Cost Per Minute of a sewing line?

We can calculate actual CPM of a sewing line with the following formula.

                                                        Total Attended salary for the day

Actual Cost Per Minute = ----------------------------------------------------------------------------------------

                                           Total garment production of that day × Garment SMV

Example,
Assume that total actual salary of a sewing line for 1 day is 20000 Taka, line production is 1200 piece
and garment SMV is 20 minutes then find out cost per minute of that sewing line?

Solution:

Given that,

1 day salary of sewing line = 20000 Taka

Production = 1200 piece
Garment SMV = 22 minute
Actual CPM = ?

Now, 
 
                                                           Total Attended salary for the day
Actual Cost Per Minute = ---------------------------------------------------------------------------------------
                                            Total garment production of that day × Garment SMV

      20000
= ---------------------------
   1200 x 22

    20000
= ---------------------
    26400

= 0.76 Taka

How to find out Estimated Cost Per Minute of a sewing line?

To use this calculation your operators need to be salaried. We can calculate estimated CPM of a sewing
line with the following formula.

                                                                   Total Attended salary for the day

Estimated Cost Per Minute = -----------------------------------------------------------------------------------------
                                             Total minutes available for the day × Line efficiency for the day

And,

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 Ha-Meem Group
Audit Department

Total minutes available for the day = Total operators × Daily working hours for the day × 60

Example,
Assume that total salary of a sewing line for 1 day is 20000 Taka, number of operators are 20, working
hours are 8 and line efficiency is 60% then find out cost per minute of that sewing line?

Solution:

Given that,

1 day salary of sewing line = 20000 Taka

Number of operators = 20
Working hour = 8
Line efficiency = 60%
Estimated CPM =?

Total minutes available for the day = Total operators × Daily working hours for the day × 60
= 20 x 8 x 60
= 9600 minutes

Now,

                                                                 Total Attended salary for the day

Estimated Cost Per Minute = -----------------------------------------------------------------------------------------
                                            Total minutes available for the day × Line efficiency for the day

        20000
= -------------------------
    9600 x 60%

    20000
= ------------------
    5760

= 3.47 Taka

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