1. What is GMTS consumption and Costing How many fabric and Accessories or others materials have to needed for making a garments that is consumption. How much money to be expensed for making a garments that is costing.

2. What is Merchandise and Merchandising Merchandise- means goods bought and sold; and trading of goods. Merchandising- is an activity of selling and promoting the goods. 3. What is merchandising? Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase. 4. What is the major work for merchandiser What is merchandising? A man who is collect order from customer, sourcing raw materials ,production on time, with quality and maintain lead time. 5. Objects of Merchandising Merchandising denotes all the planned activities to execute and dispatch the merchandise on time, taking into consideration of the 4 Rs to replenish the customer. Right Quantity: To dispatch right quantity of product what buyer ordered. Right Quality: It should be with right quality as accepted both parties. Right Cost: Everybody wants more from what they are paid. Right Time: No one wants to wait idle even in a Restaurant. Keeping delivery schedule is mandato 6. Qualities of Merchandiser Communication Skill: The communication is very much important to promote the business activity. The merchandiser should remember that communication must be lurid and should having face to face conversation with the buyer. Planning Capability: Merchandiser should be capable of planning, based on the planning the order is to be followed. If the planning is not done properly it will directly affect the delivery time of the order. Decision making: For a Merchandiser, decision making power is most important. He should think about the decision to be taken and to act in a right way. Loyalty: Loyalty is an essential character of human beings. Especially for the business people like merchandiser it is a must. Knowledge about the field: Merchandiser should have adequate knowledge about the garments, Computer knowledge, and technical knowledge to communicate with different people in the business is a must. Co-ordinate & Co-operate: Merchandiser is the person who is actually co- ordinate with the number of departments. To Co-ordinate with different people in the industry he should be co- operative. Monitoring ability: Merchandiser should monitor to expedite the orders. Other qualities: Education, Experience, Situational Management, Ability to Evaluate, Dedication, Knowledge of expediting procedures. 7. Function of Merchandisers Developing new samples, execute sample orders Costing Programming Raw materials / Accessories arrangement Production scheduling (or) route card drafting Approval of various Process, Pattern and size set Pre production follow up Meet Inspection Agencies Production controlling Identifying shortages and make arrangement for the shortages Following quality assurance procedures, quality control procedures 8. Monitoring the in-house, sub-contractors and junior activities Buyer communication Communication with sub-contractors, processing units & other 3rd parties Proper reporting Highlighting to the management Record maintenance Developing samples Placement of orders to suppliers Taking measures for consistent production Taking preventive action to maintain the targeted performance in all areas of activities Attending meeting with superiors and furnishing the required details about merchandising 9. Department structure and Functioning Industries label 10. Machine Wise Sewing Thread Consumption PER Inch From this post you will get information regarding the sewing thread consumption depending on type of Machine : Machine Name Classification Require thread/inch Plain Machine, 1 Needle, 2.5" Plain Machine 2 Needle 5" Over lock 3 Thread 13.25" Over lock 4 Thread 16.75" Over lock 5 Thread 18.75" Flat lock 3 Thread 16.75" Flat lock 5 Thread 22.25" Bar tack stitching 7" Generally P/Operation Button hole stitching 7" Generally Per Hole Button Attaching (2 hole) 3" Per button Feed of the ARM 7" For one needle kanchi Stitching 7" For one needle Back Tape Stitching 7" For one needle After this you must include another 25% sewing thread before place the work order. 11. Carton cost calculation rule = [{(Length + width + allowance) X (Width + Height + 4)} X 2] / 10000 X Per square liner rate = [{(60 + 40 + 6) X (40 + 30 + 4)} X 2] / 10000 X $0.80 = [{(106) X (74)} X 2] / 10000 X $0.80 = {(7844 X 2)} / 10000 X $0.80 = 15688 / 10000 X $0.80 = 1.5688 X $0.80 = $1.25504 / pc (Per carton rate) 12. Fabric Consumption for knit Body Length = in CM Sleeve Length = in CM Chest/Bottom (most widest part) = in CM GSM = gm/m2 Rules: {(B/length + S/length + Sewing Allowance) X (1/2 Chest + Sewing Allowance)}X 2 X GSM X 12 / 10000000 + Wastage = {(73 + 19.5 + 10) X (52 + 4)} X 2 X 160 X 12 / 10000000 + 10% = (102.5 X 56) X 2 X 160 X 12 / 10000000 + 10% = 5740 X 2 X 160 X 12 /10000000 +10% = 22041600 / 10000000 + 10% = 2.20416 + 10 % = 2.424576 = 2.43 kg per dozen. (Consumption) 13. Fabric Consumption for knit inch measurements {(B/length + S/length + Sewing Allowance) X (1/2 Chest + Sewing Allowance)}X 2 X GSM X 12 / 1550000 + Wastage 14. Woven dress consumption Center front length = 32"+1" (Sewing allowance) = 33" Width (Chest) = 24" + 1" (Sewing allowance) + 3" Pleat.W (1.5X2) = 28" = Length X Width / Fabric width X Fabric Unit = 33" X 28" / 44" X 36" = 924" / 1584" = 0.5833333 = 0.59 Yards. (for front part) 15. Some important terms in costing Yarn cost Process cost Process loss CMT (Cutting, Making & Trimming) Negotiation (getting the best out of a deal) Commission percentage (%) for Middle man Shortage Buyer specification (It is buyers responsibility to specify the quality required) Quantity Currency Mode of Shipment (sea, air) FOB (Free On Board) CIF (Cost, Insurance and Freight) OH (Over head) Quota(Not applicable nowadays) Profit (level of %) 16. Before start costing 1) Fabrication: You must take clear idea regarding the fabrication before taking the order from the buyer / buying house. After then, you must ensure that, you have strong source of the followings fabric. 2) Size spec: Make sure that, you have got the correct/latest size spec with the measurement of all the sizes, which will be ordered. Many times we see that, PO sheet has come with new bigger size which was not during the costing. 3) Fabric color: Try to know that, how many colors the style has & also try to know that, color wise order qty ratio. 4) Qty: Take information regarding approximate order qty. 5) Shipment date: Asked buyer for the shipment date & check with your production department that, they have enough space for shipped out the followings qty within the require ship date Or tell your possible date. 6) Test requirement: Let you know that, the order has any test or not. 7) L/c payments term: Take a previous l/c copy from them & discuss with your commercial people regarding all the terms along with payment terms 8) Inspection: Pls get a confirmation from the buyer that, who will inspected the goods. If third party then who will pay their charges. 9) GSP: Pls confirm that, buyer has need the GSP or not. 10) Price mainly depends on shipping line FOB, C&F, CIF. 17. Others item 1) Print: If the garments have print then make sure that, you have a clear art work of it. Check that there clearly mentioned the print quality, dimension & placement. Send the art work to your printers for a better price idea. Also let you know from your printers regarding the difficulties of the followings print. Many times we found that, buyer has asked for so many type/kind prints in same body which is so difficult for production. Such as, if buyer asked for Flock + discharge & foil print in at the same artwork then it is not possible for production. 2) Embroidery: Discuss with your embroidery supplier regarding the embroidery & take price quotation. 3) Wash: Take the wash price quotation from washing factory. 4) Test: Confirm the charges of test from the testing company. Accessories & trims Pls try to Calculate the price of accessories individually it will reduce your percentage of mistake. Pls find below the list of some accessories item Sewing thread: Confirm that, which thread you need 100% cotton, spun polyester or filaments. Then ensure the count 50/2 or 40/2 or any other denier. Its may vary on fabrications. Regarding the pigment dye garments we normally used cotton grey color cotton thread. Calculate the sewing thread consumption part by part & add require wastage percentage. Labels: Take the quotation from your supplier for the entire woven & satin/paper label. 18. 3) Tape: Calculate the consumption of tape if it has, such as Velvet, herringbone or canvas etc. 4) Elastic: Make sure which denier & width it need. Then take the quotation from supplier. 5) Zipper: If the garments have zippers then confirm that, from where you will purchase that. Many time the logo zipper need to import the mold from abroad. Make sure the zipper quality, such metal, nylon or vislon zipper. Check the zipper measurement from your production department and get prices from your zipper supplier. 6) Button: Take the button price from your supplier if the garments have it. 7) Inter lignin: Calculate the inter lignin price if the garments need. 8) Patch or badge: Calculate the patch or badge or others metal item if the garments have. 9) Finishing item: Tissue paper, silica gel, hang tag, barcode sticker, back board, h/tag string, scotch tape, security tag calculate the prices of these item. 10) Hanger: Take the quotation of hanger. 11) Poly: Make the measurement of poly. Confirm the quality & with adhesive or not. 12) Carton: Find out the carton measurement & take the prices from carton supplier along with top, bottom & divider. 13) Gum tape: Confirm the gum tape quality that, whether it is normal transparent or with any logo. Then take the price quotation. 14) PP belt: Take the price quotation of pp belt if buyer asked it. 15) Carton sticker: Take quotation for sticker. Commercial cost Normally we add 3% of total purchase (Fabric cost+ other item cost + Accessories cost) as commercial cost if the L/c payments terms is as sight. If the l/c is 60 days deferred then you can add 7.5% additional cost of total price and it will be 15% for 90 day deferred. CM (Cost of making) Calculate the CM after discussion with your production department. Its vary depends on require machine qty & output qty. Profit Normally we add 20% of CM cost with the price as profit. 19. Cost Calculation System During the fixation of price following notes are to be followed carefully: Cost of fabric /Doz Cost of accessories /Doz. Garments C. M (Cost of manufacturing)/Doz. Garments Cost of transportation from factory to sea port or airport. Clearing & forwarding cost Overhead Cost. Commission/Profit. 20. Body fabric cost calculation: 1st step Yarn price / kg = $4.00 Knitting cost /kg = $0.20 Dyeing cost / kg = $1.21 _____________________ Finished fabric cost = $5.41 2nd Step Collar & cuff cost calculation: Yarn cost/Doz = 0.78 X $4.00 = $3.12 Knitting cost/Doz = $0.05 X 12 = $0.60 Dyeing cost = 0.78 X $1.21 = $0.94 ___________________________________ Collar & Cuff cost / Doz = $4.66 21. 3rd Step Total production cost: Body fabric cost ( 4.41 kg X $5.41) = $23.86 / Doz Collar & Cuff cost = $4.66 / Doz CM = $6.00 / Doz Accessories Cost = $3.00 / Doz __________________________________________ Total production cost: = $37.52 / doz Final Step Fob pricing of per piece polo shirt: Total production cost : = $37.52 / doz Commercial cost will be (3%) = $0.95 / doz (Except CM) Profit will (20% of CM) = $1.20 / doz _________________________________________ Total FOB price (doz) = $39.67 / doz Fob price per piece will be = $3.3058 / pc Final quoted price for buyer = $3.35 / pc (FOB) 22. Fabric Consumption / Dzn : Measurment GSM Consump/ pc P/Doze n 10%Wastag e Layer/dzn Rib/p cs Rib/Dz TTL Fab- Kg Chest (CM) 41 180 0.1782 2.1384 2.3522 0.0000 0.020 0 0.240 2.592 Length (CM) 51 Sleev Length (CM) 49 Additional Fabric Total 2.592 23. Fabric Price Calculation/kg : Total-Kg Dying Charge - Average Yarn: 2.950 Yarn count :34/s Colour Rate % Lycra Yarn 0.000 2.950 Peach/C oral 2.300 100 % L/C & Administration Cost (1.5%) 0.044 2.994 Knitting Charge 0.350 3.344 Total 2.300 Knitting Loss (1%) 0.033 3.378 Average 2.300 Deying Charge 2.300 5.678 Deying Process Lost ( 20% ) 1.136 6.813 Fabric Price: 6.813 24. Garments Calculation: Price/Dzn 1 Fabric Value $ 17.66 2 Accessories $ 4.50 3 Print $ 1.50 4.EMB $ - 5. Wash 6. All over print 7 Brush 8. CM $ 4.00 9. Others $ 0.50 Total Cost $ 28.16 L/C + Com Charge 3% $ 0.84 $ 29.01 Total Cost/pc $ 2.42 Price/pc (FOB) With profit 5% $ 2.54 25. C M calculation = {(Monthly total expenditure of the following factory / 26) / (Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} / [{(Production capacity per hr from the existing layout, excluding alter & reject) X 8}] X 12 / (Dollar conversion rate) = [{(50,00,000 / 26) / ( 100 ) X (25)} / {(200) X 8}] X 12 / 74 = [{192307.7 / (100) X (25) } / 1600] X 12 / 74 = (48,076.9 / 1600) X 12 / 74 = 30.048 X 12 / 74 = 360.58 / 74 = $4.873 / dozen (this is the making cost (12 pcs) of the following items) 26. Fabric Cost 11.50 Accessories 4.50 Cost of Production 9.10 Transport Cost from factory to sea port or airport (0.5% Of Cost of Production) 0.05 Clearing & forwarding Cost (2% Of Cost of Production) 0.18 Overhead Cost (0.5% Of Cost of Production) 0.05 Total Cost 26.38 Commission (10% of Total Cost) 0.94 Net FOB Price 27.50 27. Name and address of Factory COSTING SHEET DATE 26-02-2012 BUYER HEMA B.AGENT B.K. SOURCING ARTWORK NO. 33.06.04 STYLE NO. 222-B005-10~40 ITEM NB / BABY AB SWEAT DRESS FABRICATION 100% COTTON MINI TERRY INSIDE BRUSH Y/D STRIPE 210 GSM ORDER QTY/PCS 25860 UNIT PRICE/PCS $2.17 TOTAL PRICE $56,116.20 L/C NO. L/C VALUE 56116.20 FACTORY VALUE $53,310.39 ITEM QUANTITY UNIT PRICE/KGS/DOZ TOTAL PRICE YARN(26/1)COTTON 3010 $ 3.60 $ 10,836.00 YARN(26/1)(G.MARL) 2295 $ 4.10 $ 9,409.50 LYCRA 15 $ 10.00 $ 150.00 KNITTING ENG. STRIPE 3980 $ 2.00 $ 7,960.00 KNITTING(2X2 LYCRA RIB) 755 $ 0.25 $ 188.75 KNITTING TERRY 585 $ 0.25 $ 146.25 DYEING(Y/D) 1990 $ 2.20 $ 4,378.00 DYEING(WASH) 4285 $ 0.60 $ 2,571.00 DYEING 1035 $ 1.50 $ 1,552.50 BRUSHING 3980 $ 0.15 $ 597.00 FINISING ACCESSORIES 25860 $ 1.00 $ 2,155.00 ZIPPER $ - TEST 25860 $ 0.01 $ 258.60 HANGER 25860 $ 0.80 $ 1,724.00 COMISSION $ 2,805.81 COMMERCIAL 25860 $ 0.01 $ 258.60 OTHERS 25860 $ 0.01 $ 258.60 CM/DOZ 25860 $ 6.00 $ 12,930.00 G. TOTAL $ 58,179.61 28. Particulars Amount in US $ Fabric (30 Yds X$0.95) Cost /Doz. 28.50 Accessories Cost./ Dzn 06.00 CM (Cost of Manufacturing)/Dzn. 10.00 Sub Total 44.50 Transport Cost from factory to sea port or airport (0.5% Of Cost of Production) 0.23 Clearing & forwarding Cost (2% Of Cost of Production) 0.90 Overhead Cost (0.5% Of Cost of Production) 0.23 Total Cost 45.86 Commission (10% Of Total Cost ) 4.60 Net FOB Price 50.46 Freight (4% of Net FOB Price) 2.02 Net C & F Price 52.48 Insurance Cost (1.5% of Net C&F Price) 0.79 Net C I F Price 53.27 Price Quotation of a Garment in FOB/ C&F/ CIF Value 29. 20 Container Measurement: Length: 288 x Width: 84 x Height: 94 = 1800288 cubic inches 1800288 divided by 1728 cubic inches= 1041.83 cubic feet. 1041.83 divided by 35.32 =29.50 CBM A 20 container has an air capacity of 29.50 CBM, but when exporters ship goods packed in cartons or wooden crates, it can only hold about 27 CBM as there will be gaps or spaces wasted . If the rate of a 20 container is $ 3, 500.00 exporters average rate per CBM is about $ 130.00 40 container Measurement: Length: 447 x Width: 84 x Height: 94 =3742704 cubic inches. 3742704 divided by 1728 cubic inches= 2165.92 cubic feet. 2165. 92 divided by 35.32 = 61.32 CBM. Therefore, a 40 container has an air capacity of 61.32 CBM. Likewise, when the exporter ship goods by packed cartons or wooden crates, it will hold only about 54 CBM. If the rate of the 40 container is $5000.00 the average rate per CBM is about $ 92.00. 30. 40 Hi container Measurement Length: 447 x Width: 84 x Height: 106 = 474 x 84 x 106= 4220496 cubic inches. 4220496 divided 1728 cubic inches =2442.41 cubic feet. 2442.41 divided by 35.32 = 69.15 CBM A 40 Hi Cube container is about 12% higher than a 40 regular container, and the cost of a 40 Hi Cube is about 10 to 12% higher, so the rate per CBM is about the same. There is very little, or on advantage in using a 40 Hi Cube as the rate per CBM is concerned. However, there is great advantage when the exporters have the amount of cargo which exceeds the capacity of a 40 container only by 5 to 8 CBM. 31. Example: one dz of Mens stand up collar shirt is about 0.034 CBM. (1) If exporter ships this shirt as loose cargo, 0.034 x 160.00 =$5.44/ dz sea freight (2) If exporter ships this shirt in a 20 container (full) 0.034 x 130.00 =$4.42/ dz sea freight. (3) If exporter ships this shirt in a 40 container, or a 40 f ii Cubic container (full) 0.034 x 92.00=3.13 per dz sea freight As most shippers are shipping goods by the container, we may form an opinion that as long as we pay for the whole container we may fill up the container regardless of the weight of the merchandise. However, this is hot true; the usual weight limits of the containers are as follows: 20 container..weigh limit: 16300 kg 40 container. weigh limit: 19500 kg Actually the weights mentioned above are weight limits as guidelines. The real limits are as follow: 20 container:.18148 kg including the weight of the container. 40 or45 container:.25400 kg including the weight of the container. The following are the weights (tare weights) of the containers: 20 Steel : 1960 to 2350 kg 40 Steel :. 3390 to 4190 kg 40 Aluminum : .2450 to 3050 kg 45 Aluminum / Steel : ..3925 to 4500 kg 32. AIR FREIGHT Unlike sea freight, the airlines have decided to charge for the heavy merchandise (high density goods) by weight and light weight merchandise (low density goods) by volume. However, as airplanes can take less weight, than ocean liners, the way they set the standard, in the garment industry, when you ship goods by air, you have a 70% chance to be charged by weight, about 30% chance by volume. If the merchandise is of high density (heavy) such as jeans, flat packed shirt, jackets without polyester padding, T-shit without hanger, there is a good chance it will be charged by weight. In that case, it is not possible to save air freight by packing the goods tighter in cartons to reduce the measurements. However, if the merchandise is of low density (light weight) such as stands up collar shirts, shirts individually boxed , jackets with polyester padding, or down fill, T-shirts or other shirts with hangers heavy gauge sweaters , there is a good chance it will be charged by volume. In that case, exporter should make an effort to make the cartons as small as possible.