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Standard costing as a tool for control
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Project Title:
The role and steps, which are carried out by PPC (Production Planning & Control) for a specific order in Garment Manufacturing Industry.
Description
Explain each step that is followed by PPC Department from beginning to the completion of the order. During the planning please consider the followings details:
Garment type • Select any specific garment (prefer the basic garment e.g. Polo shirt, 5-pocket jeans etc).
• Calculation for the consumption of raw material depends on the selection of garment.
• In order to make the costing sheet, please visit the market for price quotation.
Total order quantity 20000
Delivery Within 45 day (for production)
Available capacity Consider the following capacity per day during Planning
• Cutting 1000 basic garment
• Stitching machine 300 m/cs
• Washing 600 garments
• Finishing 700 basic garment
All the departments are running at 80% efficiency.
Garment manufacturing is the mass assembling of clothing. Manufacturing garments requires a lot of planning and awareness of the schedule. The coordination of contractors and their rightness plays a huge role in meeting deadlines for the production. In most of cases the production of garments is very time responsive in order to ship goods to stores for the forthcoming season. Having a late order can effect poorly on the business.
To create a production schedule, start from the end date and work backwards in order to establish a schedule that suits the requirements. Give a margin of a week or two to allow for any delay in the progression.
My Garment:
I selected a knit T. shirt for this project.
Steps followed by PPC department:
On industrial basis there are ...
... middle of paper ...
...1 Unit 3 approx.
7 Price Tags 1 Unit 2 approx.
8 Poly bags 1 Unit 1 approx.
9 Kimble 1 Unit 0.5 approx.
Total Cost 127.96
*UOM - Unit of measure
Now for each item merchants normally purchased extra quantity of inventory (from 2% to 7%) as buffer. This surplus cost due to extra purchase of material is added into the garment costing.
BASIC CAPACITY CALCULATIONS
• In the clothing industry, most companies still work to standard minutes, which is the calculated or measured average time to produce a garment. A fundamental calculation may be as follows:
• 8 working hours per day = 8x 60=480 minutes
• 10 operators per team
• Capacity = 8x60x10=4800 minutes per day
• Standard Minutes for T-shirt = 10 std min @ 80% efficiency =
4800/10 = 480 pieces per day
• 480x42=20160
• So the order will be ready for delivery in almost 42 days.
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Ewalt, D. M. & Hayes, M., (2002, Sep 30). Supply-chain management: Pinpoint control InformationWeek. Manhasset, 16-19
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