Industrial Engineering

Basic Garments Terminology

Some Basic Terms

 Production
 Productivity
 Capacity
 Capacity Utilization / Capacity Gap
 Efficiency
Production
Production is any process or procedure developed to transform a set of input
elements like men, materials, capital, information and energy into a specific
set of output elements like finished products and services in proper quantity
and quality, thus achieving the objective of an enterprise.

The essence of production is the creation of goods may be by transformation

of raw materials or assembling so many small parts (Ex - TV, Vehicle etc).

There are four factors of production namely:

1. Nature ( Land and other natural resources)

2. Labor (Human efforts)
3. Capital (Factory buildings, machinery, tools, raw materials etc)
4. Enterprise (Activity that organizes other factors of production into an
operating unit)
Production A production system is the set of interconnected
input-output elements and is made up of three
components namely – inputs, processes & outputs.

Materials

Plant and Goods and

Men
Facilities Services

Energy

Production
Inputs Outputs
Process

Model Showing Production Process

Cost Effective Production
Productive Systems
In most general term, the productive system is defined as the means by
which we transform resource inputs to create useful goods and service as
outputs.

The nature of the process for manufacturing is the first factor which
influences the layout.

The manufacturing industries may be classified according to the nature of

the process performed:

 Continuous Process Industry

 Repetitive Process Industry
 Intermittent Process Industry
Continuous Process Industry

 A continuous process industry may be defined as one where the

process is continuous all the time day and night, all 24 hours per
day.

 It is impossible to stop production process at a short notice without

suffering considerable losses due to partially processed materials,
damage to equipments and the cost of labor and materials required
to clean out and re-condition production equipments.

 For example, steel plants, blast furnaces, rayon plants, sugar mills,
oil refineries, heavy chemicals plants, etc.
Repetitive Process Industries
 In a repetitive process industry, the product is processed in mass.

 In this type of industry varieties of operations may be involved in

different departments. The repetition of the operations permits a
highly specialized study of layout.

 Each item in the lot follows successively the same operation as the
previous lots.

 The situation becomes similar to the continuous process type of

industries, expect that the work may be stopped at any time on a
short notice without any damage to materials, equipments etc.

 For example, companies manufacturing automobiles, tractors,

telephones, televisions, refrigerators, shoes etc.
Intermittent Process Industries
 Intermittent industry is one that processes items as and when orders
are procured.

 It is some time called a job-lot industry. Small lots of items are

manufactures on receipt of orders as per the specification of
customers. Once the lot is completed, repeat orders may be received
and the items are again produced.

 In this type of industry, flexibility of operations is most important.

 Addition of new equipments will not necessarily require the

relocation of the other equipments.

 For example – Goldsmith, tailor etc.

intermittent means irregular

 Production

 No. of pieces or Units produced

 Output in a given period of time
Example
Unit-A produces- 500 Units/Day
Unit-B produces-600 Units/Day
Production/day of Unit-B is more than that of Unit-A
( Output refers to goods or services produced)
Production figures don’t give idea about

Inputs - in terms of resources used/consumed to produce the Output.

Inputs can be of following areas:

 Man
 Machinery
 Value
 Area/Space
 Man Hrs. or Machine Hrs.
So, How one will know whether Production
is economical/beneficial or not?
Productivity

Relationship Between Output and Input

Productivity= Output/Input

The Output of the plant or sections or departments within the

plant could be-
Quantity of Fabric inspected
Number of Panels cut
Number of Garments stitched or ironed
Number of Garments washed or packed
Standard Definition

 Productivity denotes the productiveness of the factors of

production.

 In simple words - Productivity is concerned with the efficient

utilization of resources (Inputs) in Producing goods or services
(Outputs)
Standard Definition

 Productivity refers to the efficiency of the production system. It is an

indicator of how well the factors of production land, capital, labor
and energy) are utilized.

 It may also be defined as human effort to produce more and more

with less and less inputs of resources as a result of which the
benefits of production may be distributed more equally among
maximum number of people.

 For example, the yield of 15 bags of paddy in one acre of land with
some labor and capital is known as production. By improved method
of cultivation but with same labor and capital, the production of say
20-30 bags of paddy is productivity improvement.
Productivity

  Plant A Plant B
No. of Workers 200 300
No. of items produced per unit of 10 20
time
     
Productivity 10/200 20/300
  0.05 0.067
Production and Productivity
 Production is defined as the process or procedure to transform a set of
input into output having the desired utility and quality.

 Production is a value-addition process.

 Production system is an organized process of conversion of raw

materials into useful finished products.

 The concept of production and productivity are totally different.

 Production refers to absolute output where as productivity is a relative

term where in the output is always expressed in term of inputs.
Production and Productivity

Increase in production may or may not be an indicator of increase in

productivity. If the production is increased for the same input, then there
is an increase in productivity.

If viewed in quantitative terms, production is the quantity of output

produced, while productivity is the ratio of the output produced to the
input(s) used.

Pr oductivity  Pr oduction  Re sourceEmployed

Productivity is said to be increased, when

 The production increases without increase in inputs.

 The production remains same with decrease in inputs.
 The output increases more as compared to input.
Productivity
Productivity
Productivity
 Purpose to Increase Productivity
   
To produce good earnings(profit)
To clear the debts and loans acquired from
For Management different sources
To sell more
To stand better in the market
   
Higher wages
Better working conditions
For Workers
Higher standard of living
Job security and satisfaction
   
Reduced price of the articles
For Customers Better quality and value
More Satisfaction to customers
   
Provides Greater National Wealth
Increases per capita income
Improves Standard of Living
For Nation Better utilization of resources of the nation
Helps in expansion of International Market with
the help of standardization and good quality
product
Productivity and Standard of Living
 Each man must earn to pay for the services (hygiene, security and education)
and to obtain goods (food, shelter and clothing) for himself and his family.

 If the quantity of goods and services produced by any country is higher, the
standard of living of the citizens of that country is also higher.

 We can have more and affordable food by increasing productivity of agriculture.

 By increasing productivity of industry, we can provide more and inexpensive

clothing.

 Higher productivity means that more is produced at same expenditure of

resources.

 Efficient utilization of resources means cost reduction and savings.

Relationship between Productivity
and Standard of Living
Factors Affecting Productivity

Factors affecting national productivity:

 Human resources
 Technology and capital investment
 Government regulation

Factors affecting productivity in manufacturing and services:

 Product or system design

 Machinery and equipment
 The skill and effectiveness of the worker
 Production volume
Total and Partial Productivity

Total productivity is the ratio of total Output to the sum of all Input factors.

 A total productivity measure reflects the joint impact of all the inputs in
producing the output.
 Total productivity measure doesn’t tell the management which of its
products or services is causing a decline or growth, nor does it which
particular inputs- workers, material, capital, energy or other expenses-
are being utilized inefficiently.
 In simple words- Data analysis is relatively difficult.
Partial Productivity

Partial productivity is the ration of out put to one class of input.

For example-
 Labor productivity- Ration of output to the Labor productivity.
 Partial productivity measures are easy to understand, use and
compute.
 It’s a good diagnostic tool for pinpointing improvement areas.
 But at the same time it has some disadvantages also - If used alone-
can be misleading and may lead to costly mistakes.
 It can’t be used to explain overall cost increase.
Productivity Improvement

A TASK have below components-

1. Basic Work Content- the amount of work “contained in” a job.
2. Excess Work Content-
 Work content added by defects in design or specification of the
product
 Work content added by inefficient methods of manufacturing
3. Ineffective time
 Due to the short-comings of management
 Ineffective time within the control of the worker
 Productivity Improvement

The factors- Excess work content and Ineffective time do reduce the
efficiency or can be said as non productive factors.

Basic Work Content is the main component of the task for which
resources are utilized.

High productivity is achieved where the Excess Work Content and

Ineffective Time for a job are small, or have been eliminated, and the
Basic Work Content is a high percentage of the Total Time for the job
How productivity is lost?

 Annual Labor Turn over

 Absenteeism
 Methods ineffectiveness
 Avg. Factory performance
 Repairs and Rejects ( Quality issues) - Not RIGHT First Time
 Balancing losses
 Machine delay/idle times
Some Questions

 Who will tell productivity is low or high?

 Comparing it to the benchmarks?
 How it will be judged?
 How to increase the productivity?
For Higher Productivity

ME+EM+ME+EM=HP+EQC

Modern High
Motivated
Equipments Productivity
Employees

Enlightened
Management
Effective
Engineered
Quality Control
Methods
Capacity

 Maximum possible out put of goods or services @ given

resources @ ideal / std. conditions
 This is purely a mathematical figure.

For example, a garment industry has 10 sewing lines and each line has 30
machines for a total of 300 machines and a working shift is 8 hours per
day. Total factory capacity per day is 2400 hours (300 machines × 8 hours).
If a garment industry is making a formal shirt having a SAM value of 28
minutes and has utilized daily production capacity of all 300 machines at
55%, then

= (2400 x 60/28) x 55%

= 2828 pieces
Capacity Utilization

 The actual ability to produce/deliver goods or services at given

resources and working conditions.

 Targets are set always by considering Capacity Utilization only.

 Capacity Gap- The diff. between Capacity and Capacity

Utilization.
Efficiency

 How good or bad we perform against the Target set.

 How efficient or successful we are to achieve the Target

 The target is expressed as a time per garment or a required level of

production.

 Targets are normally set at a performance level of 100%, and

therefore if an operator reaches his / her target production, then his /
her efficiency would be 100%
Efficiency

 Efficiency= (Time Allowed / Time Taken)*100

 Efficiency= (Achieved Production/Target Production)*100

For instance, an operator was carrying out an operation with a SAM

of 0.65 minute. In a shift of 8 hours, he produces 420 pieces.
Then the operator’s overall efficiency is given by

= (420 x 0.65) / (8x60) x 100%

= 56.87%
Productivity and Efficiency

 Productivity and efficiency are the primary performance measures in

garment production. 

 Productivity is the ratio of output (products or services) and input

(labour, machine, man-hours).

 Productivity can be measured as labour productivity, machine

productivity, and value productivity for a production line or of a whole
factory.

 For example – Labour productivity is defined as output (in pieces) per

labour (direct +indirect) in a given time frame.

 Example of labour productivity of a Shirt line is 10 pieces per day per

labour on 8 hour shift. 
Productivity and Efficiency

 Efficiency is the ratio of total minutes produced and total minutes

worked by an individual operator, or a line.

 Efficiency is expressed in percentage.

 For example, stitching line efficiency of a typical stitching line is 56%. 

 Productivity and Efficiency

 Productivity Formula:

Productivity = Output / Input

Labour productivity = (Total garments produced / Number of labours involved) in
 given time frame
Machine productivity = (Total garments produced / total number of machine
utilized)

 Efficiency Formula:

Efficiency = (Total SAH produced / Total hours worked)*100

Efficiency = (Total Minute produced / (Total hours worked*60))*100
Where, Total minutes produced = (Number of pieces produced * Garment SAM) 
Total minutes worked = (Number of workers * shift hours * 60)
Productivity and Efficiency

 Efficiency is measured for individual operators, for each lines and

overall factory efficiency.

 In garment production labour productivity is presented as number

of pieces produced per labour per shift.

 Labour productivity of the same line with same number of labour

for two different products (e.g. a T-shirt and a Polo shirt) may be
different. But Line efficiency can be same in both products.

 To calculate line efficiency we must have garment SAM (standard

minutes) for the products. On the other hand we don’t need SAM to
calculate labour productivity.
Productivity and Efficiency

A line of 35 operators and 5 helpers produced 400 pieces in day of 8 hours

shift. Garment SAM is 25 minutes. Calculate the labour productivity and
efficiency of the line.
Productivity and Efficiency

A line of 35 operators and 5 helpers produced 400 pieces in day of 8 hours

shift. Garment SAM is 25 minutes. Calculate the labour productivity and
efficiency of the line.

Total labour input (A) = 35+5 = 40 labours

Total production (B) = 400 pieces of garments
Total SAM produced (C) = 400 pieces * 25 minutes = 10000 minutes
Total Minutes attended (worked) by all workers (D) = 40 workers * 8 hours shift * 60
= (40 *8 *60) minutes
Labour productivity = B/A =400/40 = 10 pieces per labour per shift
Line Efficiency = (C/D)*100 = (10000 *100) / (40 * 8 * 60)
= (1000000 /19,200) % = 52.08%

Line Efficiency (excluding helper) is 59.52%. This is derived from (400*25*100)/

(35*8*60)
Productivity and Efficiency

 Productivity is product specific measure.

 When we compare our factory’s productivity with another factory’s

productivity, we have to check if both factories are making same
product.

 If different products are made by the factories, we can do

productivity comparison by converting productivity of one product
to equivalent SAM of the second product.

 Factories those don’t have industrial engineering department and

don’t calculate garment SAM are not in position to measure accurate
line efficiency.

 For them productivity measure is one that they can follow.

Thank You