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In this article you’ll learn the most critical metrics that companies in the Apparel
Industry should track.
The article does not include metrics such as Profits and Sales that are critical to
companies in all industries; rather the focus is on metrics more specific to the
Apparel Industry.
By tracking your metrics, you will dramatically improve your business results.
Why? Because not only is the old saying “If you can’t measure it, you can’t improve
it” true, but visibility into your metrics allows you to identify WHERE you can make
the easiest and most impactful improvements.
According to website Online Clothing Study, SAM of a product varies according to the
work content or simply according to number of operations, length of seams, fabric
types, stitching accuracy needed, sewing technology to be used etc.
Why is this metric important?
An estimated SAM helps in capacity planning of the factory, calculating requirement
of machineries and even helps to estimate CM (cut and make) costing of a garment.
2. Operator Efficiency
What is this metric?
This measures the skill and expertise of a particular employee.
To calculate operator efficiency, the standard minutes (SAM) of the garment will be
needed. According to Online Clothing Study, the following formula is used to
calculate operator efficiency.
To calculate efficiency of a line for a day, Online Clothing Studylists the following
data needed from the line supervisor or line recorder:
Total minutes produced by the line: To get total produced minutes multiply
production pieces by SAM
Total minutes attended by the all operators in the line: Multiply number of
operators by daily working hours and convert total hours into total minutes
(multiplying by 60).
Line efficiency (in percentage) = Total minutes produced by the line *100 /total
minutes attended by all operators
Why is this metric important?
This metric is important in calculating the cost of producing a particular run of
garment(s).
4. Labor Productivity
What is this metric?
This measures the number of garments produced by a line of sewing machine
operators in a specific time frame. It is the ratio between output and inputs.
Assume that
– Total production in day =1200 pieces
– Total labor (operator + helpers) = 37
– Working time = 600 minutes (10 hours)
So, Labor productivity per 10 hours is =Total pieces produced/ total labor input =
(1200/37) Pieces =32.4 pieces.
According to Cognizant, definitive statistics are hard to come by, but their
conversations with inventory managers reveal that for most companies, not even
50% of orders approach perfection via the traditional definition.
6. Repeated Order
What is this metric?
The percentage of the orders from old customers compared to all orders received.
Why is this metric important?
Knowing the percentage of repeated orders is important in forecasting the
production schedule.
Effective production planning relies on your ability to order the appropriate amount
of fabric for a run and realize no more than a 2 to 3 percent rate of error in cutting.
That means that the number of garments produced should equal 97 to 98 percent of
the garments cut.
According to Methods Apparel Consultancy, the Cut to Ship Ratio varies between
95% and 99%.