Free tools/Costing
CM Calculator (Cost of Making per Piece)
CM calculation for garments: cost of making per piece and per dozen from SMV, operator hourly cost and line efficiency. The formula, a worked example and a CM table by SMV.
CM per piece
0.283USD
CM per dozen
3.4USD
Cost per SAM
0.0333USD
The formula
CM = SMV / 60 x hourly rate / efficiency. The same hourly-rate method the Intelactory costing engine uses.
Worked example
Garment SMV: 8.5 min, Operator cost per hour: 1.2 USD, Line efficiency: 60 %. Result: CM per piece = 0.283 USD; CM per dozen = 3.4 USD; Cost per SAM = 0.0333 USD.
CM per piece by SMV
| SMV (min) | CM per piece (USD) | CM per dozen (USD) |
|---|---|---|
| 5 | 0.167 | 2.00 |
| 10 | 0.333 | 4.00 |
| 15 | 0.500 | 6.00 |
| 20 | 0.667 | 8.00 |
| 30 | 1.000 | 12.00 |
CM per piece and per dozen at the worked example rates (USD 1.20 per operator hour, 60% efficiency, so USD 0.0333 per earned minute), computed with this calculator.
Assumptions
- Direct labor only; factory overhead is a separate FOB line.
Questions
- How is CM calculated in garments?
- CM per piece = SMV / 60 x operator cost per hour / efficiency. An 8.5-minute garment at USD 1.20 an hour and 60% efficiency costs 8.5 / 60 x 1.20 / 0.60 = USD 0.283 to make, or USD 3.40 a dozen.
- What is the difference between CM and cost per minute?
- Cost per minute is the price of one earned minute on the line. CM is that price times the garment SMV. Work out cost per minute first with the cost per minute calculator, then CM = SMV x cost per minute.
- Why does efficiency change CM?
- Operators are paid for every attended minute but only earned minutes produce garments. At 60% efficiency each earned minute carries the cost of 1.67 paid minutes, so CM is 1.67 times what it would be at 100%.
- Does CM include overhead?
- Not in this calculator. It is direct labour only, the same method the Intelactory costing engine uses. Factory overhead, commercial cost and profit are separate lines in the FOB build-up.
Read the guide
In the platform
Intelactory costs every style on measured SMV and the efficiency your lines actually record, not a typed estimate.