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4. Labour minutes, efficiency and line cost
Work from standard minutes and line efficiency to a cost per garment, and see what capacity loss costs.
Convert an operation breakdown into standard minutes per garment, then cost those minutes at the line's cost per minute and the achieved efficiency. Test what a five-point efficiency change, a bottleneck operation or overtime does to the cost per piece.
By the end of this module: Work from standard minutes and line efficiency to a cost per garment, and see what capacity loss costs.
Prerequisite: Complete module 3 and its readings first.
Who this module is for · Intermediate
- Merchandisers and costing staff building and defending cost sheets
- Industrial engineers working on minutes, efficiency and line balancing
- Factory managers and owners who need to see where margin is lost
This module stands on its own — study it in any order. Your reading, quiz score and capstone are saved on this device, and to your account when you sign in. See your progress for this course.
Go deeper
Where the minutes actually come from, in full:
1. Read these chapters
2. Then work through these stages
Module quiz
5 questions on 4. Labour minutes, efficiency and line cost. Answer them all, then check your score before moving on. 4 correct or more is a pass. Your best score is saved on this device, and to your account when you are signed in. This is a self-check, not an accredited assessment.
1. A garment has 20 standard minutes and the line costs 0.06 per minute at 100% efficiency. What is the labour cost per piece at 100%?
2. At 60% efficiency, that same 1.20 labour cost becomes approximately what?
3. What does a bottleneck operation cost the line?
4. Which measure makes labour cost comparable between styles?
5. Overtime is used to recover a delay. How should this appear in costing?
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