FEASIBILITY OF A PRODUCTION SET-

UP FOR

50,000 PCS/MONTH
 CONTENT TO DISCUSS

• Area Allocation
• Departments for production
• Operations in each department
• Capacity of each department
• Material required and its cost
• Labor required and wages
• Time and action calendar
• Cost card
• Capital cost
• ROI
 Area Allocation

Stitching Store Washing

2000 sq ft 2000 sq ft 2000 sq ft

Cutting Finishing
1500 sq ft 1500 sq ft

Total area = 9,000 sq ft

 Departmental Operations

Fabric sourcing Cutting Stitching Washing Finishing

• Loading • Rivets
• Fabric sourcing • Pattern making • Joining of all parts • Water filling • Trimming
• Fabric inspection • Markers making • 38 no. of operations • Temperature • Pressing
• Layering • WIP • Chemical inserting • Buttons
• Pressing • Work time • Sizing
• Cutting • Rinse • Carding
• WIP • Bleaching
• Neutralization Quality
• Finishing/ Softening
• WIP • Full garment
Quality
• Packaging
 Stitching

# Operation Section Mc/ type SAM

1 HEM W/PKT SMALL PART SNLS 0.12

2 ATT W/PKT SMALL PART DNLS 0.4

3 HEM BACK POCKET SMALL PART DNLS 0.15

4 MOCK ST SMALL PART MOCK 0.17

5 SERGE FACING SMALL PART 3TOL 0.18

6 ATT FACING (S.N) SMALL PART SNLS 0.4

7 O/L LEFT FLY SMALL PART 3TOL 0.1

8 R/FLY TURN&CLOSE SMALL PART SNLS 0.13

9 ATT ZIP TO FLY SMALL PART DNLS 0.15

10 ATT LABEL-5 SMALL PART SNLS 0.4

11 ATT YOKE BACK FEEDO 0.35

12 ATT SEAT BACK FEEDO 0.28

13 ATTACH BACK POCKET SEAM BACK SNLS 0.9

14 ATTACH BACK POCKET 2ND SEAM BACK SNLS 0.55

15 BTK B/PKT BACK BTK 0.25

16 SET F/PKT FRONT SNLS 0.35

17 HANG SWING FRONT DNLS 0.3

18 CLOSE PKT BAG FRONT 3TOL 0.28

19 FRENCH SEAM FRONT SNLS 0.35

20 SECURE TOP& SIDE FRONT SNLS 0.5

21 SET L/FLY & EDGE STH FRONT SNLS 0.38

22 J-STITCH FRONT DNLS 0.2

23 SERGE PANNEL 1 SIDED FRONT 3TOL 0.1

24 SERGE R/FLY WITH PANNEL FRONT 3TOL 0.15

25 ATT ZIP TO R FLY FRONT SNLS 0.25

26 TOP STITCH RIGHT FLY FRONT SNLS 0.25

27 JOIN CROTCH FRONT DNLS 0.25

28 BARTACK AT FLY -2 FRONT BTK 0.2

29 INSEAM FELL ASS-I FEEDO 0.35

30 CLOSE OUTSEAM ASS-I STOL 0.45

31 HIP STITCH ASS-I SNLS 0.3

32 HIP/REINFORCEMENT BTK-2 ASS-I BTK 0.18

33 ATT W/BAND ASS-I W/B 0.85

34 MAKE AND CUT LOOPS ASS-II MLOP 0.15

35 BUTTON HOLE( EYELET) ASS-II BH 0.13

36 CLOSE BAND END AUTO ASS-II CBL 0.15

37 ATTACTH LOOP 5 WITH BTK 10 ASS-II AUTO BTK 0.35

38 HEM BOTTOM LOCK STITCH ASS-II BTM LOCK 0.42

Total SAM= 15.22 mints

 CUTTING DEPARTMENT STITCHING DEPARTMENT

Workers & machines Workers & machines

• 1 operator
• 60 machines
• 1 cutter
• 60 operators
• 1 pattern maker
• 6 helpers
Operational breakdown Operational breakdown

• 30 layers * 21 garments per layer= 630 • # of machines 60

• 8 hrs.* 630 garments= 2520 • Shift hours per day 8 hours
• Time required for each cutting = 2hrs =60*8=480
Capacity Capacity

Working days =20( 5 days/batch) • Total factory hour*60/SAM*80%

Per day pcs=2520 • 480*60/15.22*80%
Total =20*2560=50400 • 1514 pcs Daily production
• 50400/1514pc=33.2 days( 8 days/batch)
• 9 days for last batch
WASHING DEPARTMENT FINISHING DEPARTMENT

Workers & machines Workers & machines

• 5 machines(2 washing,2 dryer,1 steamer) • Per head capacity 130 garments

• 5operator • # of workers 15
• 0 helper
Operational breakdown Capacity

• Time required/cycle= 96 minutes

• Total capacity=135*15=2025pc/day
• 96minutes – 150 pcs
• Working mints= 480
• 480 minutes=750pcs
• Total days=50000/2025=25 days
Capacity • 6 days per batch 7 days for 3rd batch

• 2 machines x 750 pcs=1500pc/day

• Working days =500000/1500
• 33 days(8 days/ batch 9.5 days for last batch)
• Total =33.5*1500=500250
Time and Action Calendar
 Material cost
Fabric
Button
48,975,000 Rivets Leather patch
250,000
Yards = 1.75 300,000 250,000
1 button = Rs 5
price per yard = Rs 570 1 Leather patch = Rs 5
2 Rivet/garment = Rs 6
(1x 50,000= 50,000)
(1.75x 50,000= 87,500) (6x50,000=300,000) (5 x 50,000)
(5 x 50,000)
(570 x 87500)

Thread
Chemical
1500,000
Zipper Care labels 3500,000
215 meters Thread =
750,000 500,000 Per garment chemical
Rs 30
1 Zipper = Rs 15 1 Care label = Rs 10 cost= Rs 70
(15 x 50,000) (10 x 50,000) (70x50,000=3500000)
(215x 50,000=
107,500,000)
(30 x 107,500,000/215)

Lining
125,000
0.25 meters Lining = Rs 10 Total material cost= 5,61,50,000
(10 x 125,00)
 LABOUR COST CARD MACHINE COST CARD

Department No. of Wages(PKR) Department No. of Price (PKR)

Labors Machines
Cutting 2 52000
Cutting 2 160,000
Stitching 66 17,82,000
Stitching 60 56,90,000
Washing 5 135,000 Washing 5 6150,000
Finishing 15 405,000 Finishing 7 380,000
Total 95 2,374,000 Total 74 12,380,000
 Total investment Cost card

Direct material=5,61,50,000
• Machinery and equipment = 12,380,000
Direct labor =2,374,000
• Furniture and Fixtures = 1,700,000
OH =600,000
• Carriage = 1,700,000
Total cost = RS 59,124,000

Per piece cost= 59124000/50,000

• Labour cost= 2,374,000 =RS1182.48

• Over heads = 600,000

• Direct materials =5,61,50,000

Total=74,904,000
 Financial Feasibility

Per unit cost= Rs 1182

Mark up 10%(118) = Rs 1300
Per unit profit = Rs. 118

Monthly profit Net income/month

118x50k pcs = 5,900,000
1300x50000=65,000,000
ROI Yearly profit Net income/year
65,000,000x12=780,000,000
5,9500,000 x 12 months =70,800,000

ROI= Net income/Cost of investment x 100

5,900,000 /74,904,000

=7.87%
Return time= 100/7.8=12.8 months