Bangladesh University of Textiles

M.Sc in Apparel Engineering Program

Course Title: Apparel Merchandising

Presentation
on
Consumption & Costing (Woven & Knit Apparel)

Course Teacher Prepared by

Md. Mazedul Islam Abir Khan
Md. Enamul Kabir
Sk.Nazmus Saaqib
 Contents
• Fabric consumption
• Methods of consumption
• Cost sheet preparation
 Fabric Consumption
• The quantity of fabric which is required to produce a garment
is called consumption. How much fabric is required to produce
a garment, we can determine it through marker planning and
mathematical system.

• Like other business, garment factory is set for profit generation.

Profit can be improved by saving from each cost factors of
garment making. Fabric is most important constitute of
garment and it represent around 60% of total product
manufacturing cost. Fabric cost of a product depends how
much fabric is consumed to make the garment including cut
wastes and end bits.
• In garment business, the issue of fabric consumption
is very much important as it is the saving point in the
cost sheet. For knit and sweater garments,
consumption is calculated in kg and for woven
garments the consumption is calculated in yard. How
much fabric is required to produce a garment can be
determined applying the mathematical system and
the marker planning system.
Methods of Fabric Consumption

Fabric
Consumption

Mathematical Marker
Formula Planning
Method Method

Single
Part By Part
Formula
Method
Method
 Uses of Methods
• The mathematical system is a system of rough estimation.
Consumption of a sample garment or consumption as per
measurement sheet is calculated mathematically by measuring
the area of length and width of each part of each piece of a
garment.
The marker planning can be done manually or by applying the
CAD/CAM system. Now-a-days, the CAD/CAM system is
followed in the manual marker planning. With use of the
CAD/CAM system on an experimental basis it can be observed
that about 10 per cent of materials are saved compared to the
manual method.
 Marker Planning Method
• In the system mentioned here studying the range of size, following
six pcs of six sizes can be sorted out from size range. As in XS, S,
M, L, XL, XXL Besides these we can choose three pcs of three size
or twelve pcs of twelve sizes for our convenience. It depends on
our intelligence and the size range; thereafter paper pattern can be
made by grading to the above garments as per measurement sheet.
Having made the paper pattern it should have to lay each parts of
the paper pattern on a marker paper of similar fabric width. After
marking the paper pattern if we measure marker paper to length
wise, we will find an aggregate consumption of six pcs of garment.
If the aggregate is divided by six, we will find a consumption of
one pc garment. As such we will find a consumption of one dozen
garments from the above system calculations.
 An example
• For Example if You have total of 4 pcs of garments in the marker as
per size ratio & the final marker length is 6 Yds then the fabric
consumption= 6/4 =1.5 yds/Pc.
• This is the avg. consumption for the order.
• The fabric width is not considered for this equation as the fabric width
is constant for a order.
• For knit item=
(Marker length (yd.) X fabric width(inch)X GSM X 0.023223)
1000 X no of gmts
+ 8-10 % (wastage) kg/pc.
• This formula can be used to convert the marker length into fabric
weight.
 Mathematical Formula Method

• Mathematical formula method is used for rough

estimation of fabric needed to produce a garment.
• This process generally used in sample making and for
negotiation purpose in sample making program.
• This method can be used in 2 ways-
 Single formula method
 Part by Part Method
Both methods describe in following slides
Measurement Points for Tops
(Woven and Knit)
Measurement Points for Tops
(Knit)
 Single Formula Method (Tops)
• Formula For Woven Tops (Shirt, Jacket, Blazer etc)
𝐹𝑎𝑏𝑟𝑖𝑐 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 =
1
*( 𝐵𝑎𝑐𝑘 𝑙𝑒𝑛𝑔𝑡𝑕:𝑆𝑙𝑒𝑒𝑣𝑒 𝑙𝑒𝑛𝑔𝑡𝑕:3 𝑆.𝐴 × 𝐶𝑕𝑒𝑠𝑡:2 𝑆.𝐴. :𝑆𝑙𝑒𝑒𝑣𝑒 𝑤𝑖𝑑𝑡𝑕:2 +×2
2
𝐹𝑎𝑏𝑟𝑖𝑐 𝑊𝑖𝑑𝑡𝑕×36
+wastage (5%) yds/pc

All the measurement should be in inch

• Formula For Knit Tops (T-shirt, Polo Shirt etc)
1
*( 𝐵𝑎𝑐𝑘 𝑙𝑒𝑛𝑔𝑡𝑕:𝑆𝑙𝑒𝑒𝑣𝑒 𝑙𝑒𝑛𝑔𝑡𝑕:3 𝑆.𝐴 × 𝐶𝑕𝑒𝑠𝑡:2 𝑆.𝐴. :𝑆𝑙𝑒𝑒𝑣𝑒 𝑤𝑖𝑑𝑡𝑕:2 +×2×𝐺𝑆𝑀
2
𝐹𝑎𝑏𝑟𝑖𝑐 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 = 1000 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑓𝑜𝑟 𝐾𝐺 ×100∗100(𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑓𝑎𝑐𝑡𝑜𝑟 𝑓𝑜𝑟 𝑐𝑐 𝑡𝑜 𝑚3 )
+wastage (10%)

All the measurement should be in Centimeter (cm)

Standard Body Measurement
 Example of Woven Shirt
Consumption
As an example, if we take a shirt of size of XL-17” neck size:
• Back length/Length= 32.5”
• Sleeve length =26”
• ½ chest=49/2=24.5”
• Fabric cutting width= 56”
• Armhole length 5”

32.5:26:4 ×(24.5:5:2)×2
• So Fabric Consumption = + 5%
36×56
= 2.051 yds/pc
 Example of Knitted T-shirt
Consumption
As an example, if we take a t-shirt of size of XXL-17.5” / 44.5 cm
neck size:
• Back length/ Length= 85.1 cm +4 cm (S.A) =89.1 cm
• Sleeve length =68.6 cm + 4 cm = 72.6 cm
• ½ chest=129.5/2=64.75 cm + 4 cm =68.75
• Armhole 61/2=30.5+4=34.5 cm
• GSM=140
(89.1:72.6)×(68.75:34.5)×2×140
• So Fabric Consumption= + 10%
107
= 0.51 Kg/pc
 Single Formula Method (Bottoms)
• Formula For Woven Bottoms
𝐹𝑎𝑏𝑟𝑖𝑐 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 =
1 1
* 𝑤𝑎𝑖𝑠𝑡 𝑐𝑖𝑟𝑐𝑢𝑙𝑎𝑟×𝐹𝑟𝑜𝑛𝑡 𝑅𝑖𝑠𝑒×2 : 𝑡𝑕𝑖𝑔𝑕 𝑐𝑖𝑟𝑐𝑢𝑙𝑎𝑟:𝐼𝑛𝑠𝑒𝑎𝑚 𝑙𝑒𝑛𝑔𝑡𝑕×4 +
2 2
+wastage (5%) yds/pc
𝐹𝑎𝑏𝑟𝑖𝑐 𝑊𝑖𝑑𝑡𝑕×36×6.45

All the measurement should be in Centimeter (cm)

• Formula For Knit Bottoms

𝐹𝑎𝑏𝑟𝑖𝑐
1
𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 = 1
* 𝑤𝑎𝑖𝑠𝑡 𝑐𝑖𝑟𝑐𝑢𝑙𝑎𝑟×𝐹𝑟𝑜𝑛𝑡 𝑅𝑖𝑠𝑒×2 : 𝑡𝑕𝑖𝑔𝑕 𝑐𝑖𝑟𝑐𝑢𝑙𝑎𝑟:𝐼𝑛𝑠𝑒𝑎𝑚 𝑙𝑒𝑛𝑔𝑡𝑕×4 +×𝐺𝑆𝑀
2 2
+wastage
107
(10%)

All the measurement should be in Centimeter (cm)

Measurement Points For Bottoms
 Example of Knitted Bottom
Consumption
• Lets say ,
• You have a trouser of waist 72 cm, ½ thigh 24 cm, inseam 64
cm, front rise 26 cm, GSM=180.
• Formula ½ waist= 72/2 + 4=40 cm
• ½ thigh=24+4 cm=28 cm
• inseam=64+4 cm=68 cm
• Front Rise= 26+4 cm=30 cm
• Fabric= {(40X30)X2 + (68X30 )X4} X180 / 107 + 10 % kg/pc
• =0.21 kg/pc.
 Example of Woven Bottom
Consumption
• The fabric width here are the fabric cutting width. Generally the cut width of a fabric is lesser than
the produced width because before cutting we have to cut the selvedges of the fabric from two
sides.
• Generally in our industry we find the following woven fabric width:

• 1.100% cotton denim fabric—60”, cutable width- 58”

• 2.100% cotton twill/plain fabric—58”, cutable width- 56”
• 3.(97-98)% cotton+(2+3)% lycra/spandex—54-55”, cutable width-52”

• The manufactures provides us it as 60/58 or 60/57, the first number is the produced fabric width
& the second number is the fabric cut width.
 Continued…
As an example, if we take a Jeans pant of waist size of ”
• ½ waist= 80/2 + 4=44 cm
• ½ thigh=28+4 cm=32 cm
• inseam=68+4 cm=72 cm
• Front Rise= 27+4 cm=31 cm
• Fabric Width (cuttable) = 56”

44×31×2 :(32×72×4)
• So Fabric Consumption = + 5%
36×56×6.45
= 1.09 yds/pc
 Part By Part Consumption

• Woven Tops
• Need to count consumption of the following parts:
• 1.Body parts
• 2.Collar & collar band
• 3.Sleeve
• 4.Yoke & extra yoke
• 5.Pocket
𝐿𝑒𝑛𝑔𝑡𝑕∗𝑤𝑖𝑑𝑡𝑕
• For all parts fabric =36∗𝑓𝑎𝑏𝑟𝑖𝑐 𝑤𝑖𝑑𝑡𝑕 + 2% yds/pc

• All Measurements in inches & here measurement with sewing allowances must be inserted.

• Total fabric consumption=(1+2+3+4+5) yds/pc

 Part By Part Consumption (knit)
• Divide the garments into smaller parts e.g: waistband, fly
piece, leg opening, pocket etc.
• For Each part,
𝐿𝑒𝑛𝑔𝑡𝑕 𝑋 𝑊𝑖𝑑𝑡𝑕 𝑋 𝑁𝑜.𝑜𝑓 𝐿𝑎𝑦𝑒𝑟𝑋𝐺𝑆𝑀
• Fabric= 10000000
Kg/ Pc
• All the measurement=actual measurement + sewing
allowance (1-2 cm)
• For this formula every measurement must be in cm.
• Total Fabric = (1+2+3+4+5….) + 7 % Kg/pc.
 Sweater Yarn Consumption
• Buyer provided sample weight- 180gm
Merchandiser made sample weight-190gm
Let, buyer approved the sample weight and style according to
measurement chart.
• Now,
Yarn needed per dozen garments = (190 × 12) = 2280gm=
5.03lb (1lb= 453.6gm)
In case of acrylic yarn, wastage% is 5-7%.
• So, after adding wastage% total quantity of yarn needed
per dozen garments is-,
= 5.03 + 6% (here, we accept 6% wastage)
= 5.33lbs per dozen
 Cost & Price
• Price is the end value or worth of a certain product or service while
the cost is the total value of manufacturing the product or service.

• From a Seller's perspective: Price is what you sell something for,

cost is what you paid for it or what it cost to produce it.

• From a Buyer's perspective: Price is what you initially pay for an

item. Cost is what it takes to maintain the item.

Price=Cost +CM+ profit

• So when we are preparing a value sheet, the manufacturer
is providing the costing & the buyer is providing the
pricing.

• There are three basic standards of costing:

1. FOB
2. CF
3. CIF
 FOB
• Full meaning=Free on Board
• Here the manufacturer or exporter does not bear the cost of freight or ship
or air. It is buyer (Importer) who himself bears the ship/freight/air.
• For FOB price the following notes should be taken carefully:
1. Cost of fabric /pc
2. Cost of accessories/pc.
3. CM(Cost of making/manufacturing)/pc
4. Wash cost of garments/
5. Cost of transportation from factory to freight point.
6. Overhead cost
7. Profit/commission
• In most of the cases we only find 4 main points
in costing:
• 1.Cost of fabric
• 2.Cost of accessories
• 3.Cost of washing
• 4.CM
• The other points are merged into the CM
category.
 CF/ C&F/CFR

• Cost & Freight=FOB + Freight charge.

• In this case ship or air freight is carried by the
exporter while quoting price, the exporter quotes
price a bit higher than the FOB. The whole
responsibility including sending the goods to the
selected port of the importer is shouldered by the
exporter ship or air. Freight may vary from place to
place & shippers to shippers.
 CIF

• Cost, Insurance & Freight=CF +

Insurance charge
• In this case in addition to the bearing of
freight the cost of insurance is also borne by
the exporter. The exporter while quoting
price quotes much higher price than the C&
F value.
 Costs to be Considered
• Direct cost: Cost of raw material—70-75%.
• Indirect cost : Interest on investment, loan, working
capital, depreciation, overhead etc. ---5-7%.
• Profit: 10 - 25% depending on the order size.
• There are set patterns and guidelines followed by the
industry. It is difficult to find out costs for every process
as there are some inbuilt costs while costing. A larger
picture has been taken into account while quoting the
cost. Costing depends a lot on quantity and order
received.
 Factors to Be Considered for
Profit/Cost Determination
• 1.Quality level: Depending on the level of quality
allowance provided by the buyer we can determine
whether they want high or average quality of work.
Depending on that we can determine whether we provide
high or general CM.
• 2.Product Style: If the product is a very basic product it
will take less time for production & very small operations,
so can provide lower profit percentage & CM. As the
products gets complex both the points will increase.
• 3.Availability of the materials: If the raw materials
required for production are special & takes special order
then the price quoted should be higher than regular.
• 4.Lead time provided: If the buyer wants express
delivery than the regular lead time then we have to
provide higher product cost if possible.
• 5.Quality of life: The quality of life or the labor cost for
specific areas are high then the CM will be higher.
 Costing Sheet

• A costing sheet is an arrangement of all the costs

related to producing the garments.
• An efficient costing sheet includes all the costs from
A-Z.
• The costing is done mainly for the negotiation
purpose of the product.
• Costing sheet is an indication of both parties
intention towards the price range.
 General / Single /Final Price
Approach
• In this approach the product related costs are
enlisted in very broad/overall categories.
• This type of costing sheet preparation is good for
the costing of goods having little amount of product
details. But with this approach negotiation can be
tricky for manufacturer if not well prepared. This
one is also good for concealing the profit margin.
• This approach is good for formal/informal type of
business.
 An Example
• Costs of a t-shirt:
• Body fabric cost=$17.68/Doz ($4.41/Kg, 4.04 kg/doz)
• Washing cost =$2 /Doz
• Collar & cuff cost=$3.47/Doz
• CM =$4.56/Doz
• Accessories cost=$3.00/Doz(only sewing thread,label,carton,polybag)
• Production cost= $30.58/Doz
Profit = $1.23 /Doz
• Overhead cost =$1.15/Doz
• Total FOB =$33.67 /Doz
• Freight =$1.95 /Doz
• Total CF =$35.56 /Doz
• Insurance cost =$0.8 /Doz
• Total CIF =$36.34/DOZ
 Cost Breakdown approach

• In this approach the costs related are categorized into

major categories & then the related sub costs are listed
under them & then the total costing is done.
• This approach is good for formal business form & the
scope for negotiation is very good & easy.
• In this case the garments are goods & the details cost helps
us for reference of work.
• But the buyers needs to be well prepared for negotiation as
they need to be well acquainted with the costs.
QUOTE SHEET (TARASIMA APPARELS LIMITED)
BUYER : S.OLIVER DATE : 3-Sep-12
Article No.: 40.304.72.2151 QTY: TBC
ITEM : QS MALE SHORT PANT DEL : TBC
SIZE : 28-38 SEASON:
SL ITEM DESCRIPTION CONS/DZN U/PRICE VALUE
1 SHELL FABRIC 13.05 /YDS 3.80 /YDS 49.59
100% COTTON 10.55 OZ DENIM, Dark Blue Black, SORT - 95069473
SUPPLIER : ARVIND, W IDTH 59" (CNF PRICE GIVEN BY S.OLIVER)

2 POCKETING 3.20 /YDS 2.20 /YDS 7.04

100% COTTON TW ILL, PFD FORM, CON - 130X70/30X30
SUPPLIER : LOCALE, W IDTH 57/58"

FINANCE COST 3.5 % on Fa b prx 1.98

TOTAL FABRIC PRICE 58.61

SL ITEM DESCRIPTION CONS/DZN U/PRICE VALUE

1 TACK BUTTON, TR-BT-1028405, 20MM, S.OLIVER ASIA, HK 12.6 PCS 1.75 /DZN 1.84
2 NAIL, TR-BT-1004922, AT TR-BT-1000756, 9MM, S.OLIVER ASIA, HK 12.6 PCS 0.55 /DZN 0.58
3 EYE LET, TR-EY-1007505, 10.2X19.2MM, S.OLIVER ASIA, HK 12.6 PCS 1.60 /DZN 1.68
4 PRESS BUTTON, TR-BT-1000765, 17MM, S.OLIVER ASIA, HK 37.8 PCS 1.30 /DZN 4.10
5 W OVEN LABEL, LA-W L-1014278, SML, HK 12.6 PCS 0.50 /DZN 0.53
6 LEATHER LIKE PAPER-LABEL, LA-OT-1019155, SML, HK 12.6 PCS 4.70 /DZN 4.94
7 QS MALE - SIZE LABEL, LA-SL-1003606, SML, HK 12.6 PCS 0.25 /DZN 0.26
8 W AISTBAND TAG "JOHN" LA-W T-1008671, A-TEX - HK 12.6 PCS 0.97 /DZN 1.02
9 MAIN FIRST CARELABEL, LA-CL-1003524, LOCAL 12.6 PCS 0.14 /DZN 0.15
10 SECONG CARELABEL, LA-CL-1003525, LOCAL 12.6 PCS 0.12 /DZN 0.13
11 SPECIAL CARELABEL, LA-CL-1003488, LOCAL 12.6 PCS 0.16 /DZN 0.17
12 STRING W ITH SEAL, LA-SR-1007302, SML, HK 12.6 PCS 0.60 /DZN 0.63
13 HANGTAGS, LA-HT-1005804, SML, HK 12.6 PCS 0.50 /DZN 0.53
14 CI PRICE HANGTAG QS MALE, LA-HT-1005802, SML, HK 12.6 PCS 0.50 /DZN 0.53
15 EAN STICKER, LA-ST-1005801, SML, HK 12.6 PCS 0.25 /DZN 0.26
16 SPECIAL HANGTAGS, LA-HT-1006019, SML, HK 12.6 PCS 0.50 /DZN 0.53
17 OTHER LABELS, LA-OT-1028433, SML, HK 12.6 PCS 2.75 /DZN 2.89
18 100% SPUN POLYESTER THREAD TOP STITCH - 20/4 1800 MTR 1.98 /DZN 1.78
19 100% SPUN POLYESTER THREAD TOP STITCH - 20/2 1950 MTR 1.37 /DZN 0.89
20 100% SPUN POLYESTER THREAD TOP STITCH - 60/3 2200 MTR 1.17 /DZN 0.64
21 100% SPUN POLYESTER THREAD TOP STITCH - 20/9 60 MTR 2.25 /DZN 0.14
22 POLYBAG INDIVIDUAL 12.6 PCS 0.75 /DZN 0.79
23 W AX PAPER 12.6 PCS 0.20 /DZN 0.21
24 CARTON STICKER 12.6 PCS 0.25 /DZN 0.26
25 CARTON 1.20 /DZN 1.20
26 MISCELLENEOUS (FAB INSPECTION, TESTING, GUM & SCOTCH TAPE, TAG PIN ETC.)1.00 /DZN 1.00

TOTAL ACCESSORIES COST 27.64

FABRIC PRICE 58.61

ACCESSORIES PRICE 27.64
CM 25.00
HEAVY ENZYME STONE + BLEACH + W HISKER + TAGGING + SCRAPPING + GRANDING + TIE 16.00
PRINTED "JOHN standard fit" AW -520-10-0000/ 00-9170 1.50
SKATER PRINT, AW -520-10-2013/ 04-1100 1.50
FOB/DZN $ 130.25
FOB/PC (NET) $ 10.85
TARGET PRICE
 Merits

• This approach is good for both manufacturer & buyer.

• All the details are enlisted so it is easy to find whether any
product is missing & not.
• The price range is easy to find & there is plenty of scope
for negotiation.
• As the negotiation is done on the work sheet alone so if
anything missing then the manufacturer is not liable.
 Costing Decision

• So as a result it is important to not cast a very high price

initially as it will drive away the buyer interest to
negotiate.
• Then if you decide to work with a lower price than the
market price then the buyer might take advantage of you
& drive the price lower & lower.
• So if you have better cost management than the market
value then its better to use for your added benefit rather
than competitive advantage.
Thank You