1. What is CM Calculation in Garments?

CM (Cost per Minute) calculation is a crucial metric in the garment industry that helps determine the production cost efficiency by calculating the cost incurred per minute of standard allowed time for manufacturing a garment.

2. How Does the Calculator Work?

The calculator uses the CM formula:

Where:

• \( CM \) — Cost per Minute ($/min)
• \( \text{Total Cost} \) — Total production cost in dollars ($)
• \( \text{SAM} \) — Standard Allowed Minutes for the garment

Explanation: This calculation helps manufacturers understand their cost efficiency and optimize production processes to maintain profitability.

3. Importance of CM Calculation

Details: Accurate CM calculation is essential for pricing strategies, cost control, production planning, and maintaining competitive advantage in the global garment market.

4. Using the Calculator

Tips: Enter total production cost in dollars and SAM (Standard Allowed Minutes) for the garment. Both values must be positive numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is included in Total Cost?
A: Total cost typically includes labor cost, overhead expenses, material cost, and other production-related expenses.

Q2: How is SAM determined?
A: SAM is calculated through time study methods that measure the standard time required to complete a garment under normal working conditions.

Q3: What is a good CM value?
A: A lower CM indicates better cost efficiency, but the ideal value varies by product type, market segment, and production location.

Q4: How often should CM be calculated?
A: CM should be calculated regularly, especially when there are changes in production processes, labor rates, or material costs.

Q5: Can CM be used for pricing?
A: Yes, CM is a fundamental component in garment pricing strategies, helping ensure that prices cover production costs while remaining competitive.