Documente Academic
Documente Profesional
Documente Cultură
STAGES OF COSTING
PRELIMINARY/PRE COSTING (FOR DESIGN DEVELOPMENT) ROUGH ESTIMATE BASED ON COSTS OF PRODUCING SIMLAR DESIGNS IN THE PAST, BEFORE A SAMPLE IS MADE
COST ESTIMATING ( FOR LINE ADOPTION)- IS DONE JUST PRIOR TO LINE ADOPTION, BASED ON SAMPLES AND STANDARD DATA
DETAILED COSTING (POST ADOPTION) IS DONE AFTER STYLES ARE ADOPTED IN THE LINE, BASED ON PRODUCTION METHOD OF EACH OPERATION DETERMINING ACTUAL COSTS (IN OR POST PRODUCTION) IS DONE AFTER THE STYLE REACHES THE SEWING FLOOR
Some Definitions .
PRIME COST DIRECT COSTS PRODUCTION COST PRIME COST + OVERHEADS TOTAL COST PRODUCTION COST + GENERAL OPERATING EXPENSES WHOLESALE PRICE TOTAL COST + PROFIT RETAIL PRICE WHOLESALE PRICE + SELLING AND DISTRIBUTION COST + MARK UP
Engineers have to look long and hard to find a 10 cents savings opportunity in labor; but material savings of 10 cents are relatively easy to find.
Lead Time Quality Delivery Service Price Order Quantity Discounts Manufacturing Process
Other Parameters
Sizes Excess material cost Percentage of utilization Wastage Inspection cost Dyeing / Printing
Labor Costing
Begins with a breakdown of all operations involved in assembling a style. The style can be broken into component parts and sub totaled or the production standards for each operation can be added together for the total garment. Production standard reflects the normal time required to complete one operation using a specified method that will produce expected quality.