Estimate job-work capacity and conversion rates

Define the operation and responsibility

Specify which activities are included: cutting, stitching, finishing, checking or packing. Record who supplies fabric/trims, approves samples, provides transport and pays for rework. A complete-garment rate and a single-operation rate need different work content. Compare rates only after matching scope.

Calculate a realistic output scenario

Illustrative balanced-line capacity: 10 operators × 480 available minutes × 65% effective efficiency ÷ 12 standard minutes per garment = 260 garments per day. This assumes a comparable line-balanced standard, suitable skill and equipment, and no additional constraint. If the standard time already incorporates a particular allowance, understand it before applying another factor. Use observed output to replace assumptions.

Find the controlling constraint

• Compare capacity at cutting, key sewing operations, decoration and finishing.
• Check operator skills, machine availability, changeovers and material readiness.
• Record inspected/accepted output separately from pieces passing one operation.
• Allow for the actual mix of sizes, styles and rework rather than applying one universal efficiency.

Allocate daily cost to good output

If the included daily operating cost were ₹10,400 and accepted daily output 260 pieces, allocated cost would be ₹40 per piece. At only 200 accepted pieces, it would be ₹52. That example shows why a rate based on theoretical maximum output can understate cost. Add any separately agreed order charges and commercial allowance; these figures are not recommended job-work rates.

Use the agreement to close handovers

Keep a record of material received, operation/sample revision, expected output, inspected acceptance, defects and dispatch quantities. Agree how waiting time, changes and rework are recorded. Review actual cost/output after the first run rather than promising the same rate for every style.

• Download the production planning worksheet