How to Calculate CMT in Garment Industry

How to Calculate CMT in Garment Industry

Nikita Thakre
Marketing I.E. Officer at Pratibha Syntex, Indore
Email: nikitathakre602@gmail.com

 

In this article we will introduce how to calculate CMT in garment industry, before this we will know that what is CMT process?

CMT (Cut, Make, Trim):
In garment Industry CMT stands for Cut, Make and Trim process. CMT refers to the process of making a garment from cutting to trimming. CMT is also called CMTP which means Cut, Make, Trim, and Packing.

Cut: Cut means cutting the fabric from a fabric roll.

Make: Make means join two parts or stitching of panels to make a garment with the help of stitching tools.

Trim: Trim means Trim the extra thread of garment and give final touch to the garment after this check, finish and pack the garment.

All the above process is called CMT process.

Before cut, make and trim process, very critical process has to be followed like design or sketching, pattern making, pattern grading, sample making etc. after this fabric spreading, cutting, stitching, finishing or packing would be done. In CMT process there is no need to follow the process of before production and after production. The buyer handles the entire process of pre-production and after production. In C.M.T. process there is no need to buy fabric and trims for product. Along with this, all the processes including order processing, pattern making, sample making and after production shipping are handled by the buyer. We only have to follow the process related to cutting, making and trimming.

Calculate CMT in Garment Industry

Cutting:
Cutting is the first step in making of any garment. Cutting is done manually and by cutting machine. The quality of cutting fabric depends on whether it has to be done manually or by cutting machine. For cutting below process were followed-

Receiving cut plan

Preparing cutting ratio plan

Receive fabric from the fabric store

Receive markers from the CAD department

Prepare marker length on the cutting table and marking for fabric splicing

Spread fabrics

Marker making

Cutting the fabric lay

Moving cut panels to sorting and bundling area

Placing stickers to each ply of each garment components

Sorting and bundling

Attaching bundle ticket on each bundle

Sent to stitching floor.

Generally there are 3 types of cutting:

  1. Manually
  2. Heat cutting
  3. Laser cutting

Stitching:
After cutting, stitching is a very important and huge process for garment manufacturing. In this process two pieces of fabric are joined. Here we can say that stitching is process of making complete garment by assembling all the cut panels of the product with the help of stitching tools. Different types of machines are used for sewing. For example-snls, sncs, overlock, flatlock, flat shimmer, cover seam, Kansai.

Trimming:
The final step of sewing in garment manufacturing is trimming. Giving finishing touch to any garment is called trimming. Or we can also say that adding buttons, zipper, lace, bow, labels, loops or any other decorative trims to garment is called trimming.

Advantages of Cut, Make and Trim Processes in Garment Industry:

  1. In Cut, Make and Trim process, manufacturers do not need to buy fabric or trims. Fabric or trims are supplied by the buyer.
  2. In this process there is no need to follow any pre-production process.
  3. Order processing, pattern making, sample making are the responsibility of the buyer.
  4. After production shipment is also handled by the buyer.
  5. Manufacturers are not responsible in any way for fabric quality.
  6. There is no hidden cost of garment manufacturing.
  7. CMT process helps to manage small staff for garment manufacturing company.

Disadvantages of Cut, Make and Trim Process in Garment Industry:

  1. The option of CMT process is an expensive option for the company. Because in CMT process the company has to pay for material, tax and delivery, its cost has increased.
  2. There are so many variables in the CMT process that the possibility of delay increases. Like material not arriving on time, processing time, pattern being wrong etc.
  3. The biggest disadvantage of the CMT process is that if the CMT producer receives a wrong pattern, there is no one in the production house to tell him about the mistake and the CMT producers follow the same pattern or tech pack which produces costly results.

How to Calculate Cut, Make and Trim Charges?
Garment costing is a very important process in the garment industry. Because the company’s profit margin depends on garment costing. Making profit to the company is the main motive of the merchandiser. Garment costing includes fabric cost, trims cost, material cost, labor cost, overhead cost, associated expenses and all other expenses are included. There is a garment merchandiser in the company to find out the costing of the garment. To find out the accurate costing of any garment, it is very important to have the correct data so that the correct calculation can be done. Wrong calculation can cause loss to the company. If the merchandiser sells the garment at the same cost as it costs to make it, then the company also incurs a loss. That’s why the garment merchandiser should have knowledge of the calculation of garment costing. Accurate costing of a garment helps in determining the selling price or profit margin of the garment and ensures that the costing is being used to make a profit for the company.

The following factors affect the costing of a garment; hence the garment merchandiser should have complete knowledge about these factors.

  • Fabric type or consumption
  • Fabric cost
  • Trims and accessories cost
  • Printing and embroidery cost
  • Making cost of garment
  • Shipping cost
  • Other expenses
  • Profit margin of company

We can understand CMT calculation through the example given below.

We assume that we have to find out the cut, make and trim (CMT) charges of a crew neck t-shirt. And the dimensions of our t-shirt are given below-

  • No. of pieces = 3000
  • Salary of operator = 90$/month (1$ = 78tk)
  • No. of working days = 26
  • Line efficiency considered = 60%
  • Sewing SAM = 8min
  • Cutting SAM = 5 min
  • Chest = 60cm,
  • Length (HSP to waist) = 70 cm,
  • Sleeve length = 30 cm
  • Fabric used is 2/60s 100% cotton S/J fabric.
  • GSM is 170gm

Solution: The fabric consumption can be calculated as
= [{(B.L +S.L + 4-10 cm) × (½ chest+ 2-4 cm) ×2} ×GSM] / 10000000
= [{(70+30 + 4) × (60+ 2) ×2} ×170] / 10000000
= 0.219 + Wastage 10% [if consider 10% wastage]
= 0.241kg/dozen

Now we calculate labor cost per minute.

Labor cost per minute = monthly salary of an operator / (Actual minute worked in the month).
= 7020/ (26×8×60)
= 0.56tk

The formula of CMT charges is: Cutting cost + Sewing cost + Trimming cost

Cutting cost = Cutting Sam of the garment * labor cost per minute/line efficiency
= 5*0.56/60%
= 5tk

Sewing cost = Sewing Sam of the garment * Labor cost per minute/Line efficiency
= 8*0.56/60%
= 7.4tk

Trimming cost = Trimming Sam of the garment*Labor cost per minute/Line efficiency

We assume that trimming cost is 3tk but it depends on how many operators are working in that line for trimming.

So, CMT Charges = Cutting cost + Sewing cost + Trimming cost
= 5tk + 7.4tk + 3tk
= 15tk
= 15/78
= 0.19$

The current value of the dollar in Indian rupees can be obtained by converting the dollar into rupees. Today’s value of dollar in Indian rupees is 82.90rs. So we can convert the CMT charges from dollar to Rs. By multiplying the dollar value to Indian rupees i.e. .19$*82.90 = 15.75Rs.

Conclusion:
In conclusion, CMT (Cut, Make, Trim) process is a vital aspect of garment manufacturing in the garment industry. It encompasses the fundamental steps from cutting fabric to giving the final touch to garment. While it offers advantages such as relieving the manufacturer of pre-production and post production responsibilities, it also poses challenges like increased costs and potentials delays. Calculating CMT charges accurately is essential for determining the profitability of garment production. Understanding the factors affecting garment costing is crucial for garment merchandisers to ensure profitability and success in the industry.

References:

  1. https://www.onlineclothingstudy.com/2018/03/what-is-cmt-manufacturing-in-apparel.html
  2. https://garmentsmerchandising.com/how-to-calculate-garments-cost-of-making-cm/
  3. https://www.textilecalculations.com/calculation-of-garment-costing/

You may also like:

  1. SAM and SMV Calculation in Garment Industry
  2. Fabric Sourcing Properly on the Way of Garments Manufacturing
  3. Fabric Sourcing: Key Task for Garment Merchandiser
  4. Sourcing of Fabrics and Trims in Apparel Industry

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