Production Cost for knitted Production Cost for knitted sweatersweater

Jimmy LamJimmy LamInstitute of Textiles & ClothingInstitute of Textiles & Clothing

Learning ObjectivesLearning Objectives

Material costMaterial cost Knitting costKnitting cost Making costMaking cost Accessories costAccessories cost

IntroductionIntroduction The knitted sweater costs can be divided into several The knitted sweater costs can be divided into several

parts, namely :parts, namely :– the material costs;the material costs;– knitting costs; andknitting costs; and– cut and make costscut and make costs

However, in the actual production, the costs are more However, in the actual production, the costs are more complicated that this one.complicated that this one.

Can you name a few production costs for knitted Can you name a few production costs for knitted sweater ?sweater ?

Material costMaterial cost Yarn is the material cost for knitting. The yarn can be divided Yarn is the material cost for knitting. The yarn can be divided

into grey yarn and dyed yarn. Different kind of yarns (says into grey yarn and dyed yarn. Different kind of yarns (says cotton or woollen) will bear a significant different in yarn cotton or woollen) will bear a significant different in yarn cost. In addition, the knitted yarn for sweater will be blended cost. In addition, the knitted yarn for sweater will be blended into 2, or 3 or 5 plyed yarn before knitting. This additional into 2, or 3 or 5 plyed yarn before knitting. This additional process will increase the material cost in knitting.process will increase the material cost in knitting.

In short the costs are :In short the costs are :– grey yarn + dyeing costs + winding and blending costs = knitting grey yarn + dyeing costs + winding and blending costs = knitting

material costmaterial cost

Material cost (II)Material cost (II) For example, the cotton yarn for dyed material is For example, the cotton yarn for dyed material is

about HK$20/lb for 20/2 cotton. about HK$20/lb for 20/2 cotton. A pullover, 5-7 gauge middle size plain stitch sweater A pullover, 5-7 gauge middle size plain stitch sweater

will take about 13-15 lbs of yarn /dozen.will take about 13-15 lbs of yarn /dozen.– Ie. Material cost per dozen sweater is HK$300Ie. Material cost per dozen sweater is HK$300

Please name the factors for affecting the material Please name the factors for affecting the material consumption of knitted sweater and suggest possible consumption of knitted sweater and suggest possible way to determine/calculate the yarn consumption of a way to determine/calculate the yarn consumption of a knitted sweater.knitted sweater.

Knitting costKnitting cost The knitting cost involves the cost of the knitting machine, The knitting cost involves the cost of the knitting machine,

the knitter wages and running cost of the factory.the knitter wages and running cost of the factory. Modern V-bed machine can produce roughly SIX dozen Modern V-bed machine can produce roughly SIX dozen

sweaters per day (explain what factors affecting the sweaters per day (explain what factors affecting the knitting production).knitting production).

If each knitting factory has to cover $1,200 per day (both If each knitting factory has to cover $1,200 per day (both the machine cost and knitter cost), the minimum knitting the machine cost and knitter cost), the minimum knitting cost for a sweater is therefore, $200 per dozen.cost for a sweater is therefore, $200 per dozen.

Linking/Inspection/Washing costLinking/Inspection/Washing cost

This is approximately HK$100/dozen for a This is approximately HK$100/dozen for a pullover sweaterpullover sweater

AccessoriesAccessories

This will mean handtag, cartoon box and package cost.This will mean handtag, cartoon box and package cost. It is rougly HK$20-30/dozenIt is rougly HK$20-30/dozen What other cost we have to consider for sweater ?What other cost we have to consider for sweater ?

SummarySummaryITEM Cost Cost per dozen

sweaterMaterial $300

Knitting $200

Linking/Washing $100

Accessories $30

Total $630 per dozen

On top of that, you have to add PROFIT and Quota.The quota cost can be ZERO to over 1,000 per dozen