How to Calculate Production Efficiency in Garment Factories

Calculating production efficiency in garments is essential for any production manager. It allows you to identify areas for improvement and take steps to boost productivity. But how can you easily calculate production efficiency?

No worries! With a few simple formulas, you can quickly determine your hourly or daily production efficiency as a percentage. You can even track it digitally using a spreadsheet or Excel file.

I’ve provided a detailed example on Garment Diary to guide you through the process. So, why wait? Start scrolling down to discover everything you need to know!

 

What is Calculate Production Efficiency in Garment?

Production efficiency is all about how well a company turns raw materials like fabric and thread into finished clothes while keeping waste, time, and costs as low as possible. It measures how effectively a clothing manufacturer uses resources—like workers, machines, materials, and time—to produce the most clothes at the best quality.

What is An Example of Production Efficiency?

Let’s say a factory normally takes 10 hours to make 1,000 T-shirts, with 5% of them needing rework due to defects.

If the factory improves its processes—by training workers to sew faster, maintaining machines better, or using fabric more carefully—it might reduce the time to make 1,000 T-shirts to 8 hours and cut defects down to 2%.

This means they are producing the same number of T-shirts in less time, with less waste, and at a lower cost, which is a clear sign of improved production efficiency.

Steps to Calculate Daily Factory Efficiency on An Overall Basis

Calculating daily production efficiency helps you understand how effectively resources are used and identify areas for improvement. Here’s how you can calculate daily factory efficiency step by step:

1. Determine Total Output

First, find out how many items your factory made in a day. For example, if you made 800 T-shirts, that’s your total output. Knowing this helps you measure how much work was done.

1. Measure Total Input

Next, figure out how much input was used. This includes the total working hours, number of workers, and materials. For instance, if your team worked 700 hours and used a lot of fabric, that’s your total input.

1. Calculate Standard Production Time

 Find out the standard time it should take to make one item. For example, if it should take 10 minutes to make one T-shirt, this is your standard production time. This helps you set a benchmark for what’s expected.

 

1. Compute Actual Production Time

 Measure the actual time spent to produce your output. If your factory took 700 minutes to make 800 T-shirts, this is the actual production time. This tells you how long the production really took.

 

You can also calculate the actual production time by using the formula below:

APT = (Manpower x Working Minute) 

1. Calculate Production Efficiency

Use the formula to figure out efficiency:
Efficiency = ((Total Output x Standard Production Time) / Actual Production Time)  x 100 

 

This gives you a percentage showing how efficiently you produced. If you should’ve taken 8000 minutes but only took 700, you’re doing great!

1. Adjust for Quality

 Finally, account for any defects. If 5% of your T-shirts were faulty, reduce your efficiency percentage by this amount. This helps you see how well you’re producing high-quality items, not just a lot of them.

 

By following these steps, you can easily determine production efficiency. Everything is explained clearly with examples to make it easier for you to understand.

 

How to Calculate Efficiency Percentage in Excel?

Calculating efficiency percentage in Excel is straightforward and can be done with a simple formula. Efficiency percentage typically measures how well resources (like time, effort, or materials) are used compared to a standard or expected value.

Example Scenario

Let’s say you work 8 hours a day, and you have a target to complete 10 tasks within this time. However, you managed to complete 8 tasks.

Steps to Calculate Efficiency Percentage:

• Enter the Data:

1. 1. • In cell A1, enter your target value (e.g., “10” for tasks).
      • In cell B1, enter your actual value (e.g., “8” for tasks completed).

• Use the Formula:

1. 1. • Click on cell C1 (where you want to see the efficiency).
      • Type the formula: =B1/A1*100
      • Press Enter.

• Interpret the Result:

1. • The formula divides the actual value by the target value, then multiplies by 100 to convert it to a percentage.

In our example:

• The formula would be =8/10*100, which results in 80%.
• This means you were 80% efficient in completing your tasks.

This simple approach allows you to easily track and improve your efficiency over time.

 

Wrap up

In short, knowing how to calculate production efficiency is key to running a successful garment factory. It helps you see where things might not be running as smoothly as they could and gives you the tools to make improvements. The steps and formulas we’ve covered make it easy to figure out your factory’s efficiency, whether you’re looking at it daily or hourly.

Using Excel can make this even simpler, letting you keep a digital record of your efficiency. This way, you can keep an eye on how things are going and make adjustments as needed to stay on track with your production goals.

 

Frequently Ask Questions

 

How to calculate production efficiency in garment industry?

In the garment industry, production efficiency is calculated as the ratio of produced minutes to spent minutes, multiplied by 100. The formula is: 

Product Efficiency = ((Output x Standard Production Time) / (Manpower x Working Minute) ) x 100 

 

What is the formula for industry efficiency?

Industry efficiency = (Total Output / Total Input) × 100. It shows how effectively resources are used across an industry.

 

How do you calculate hourly productivity in apparel industry?

Productivity in the apparel industry = (Total Units Produced / Total Hours Worked). This measures how many items are made per hour of work.

 

What is the formula for efficiency ratio in production?

Efficiency ratio in production = (Actual Output / Expected Output) × 100. This compares what was produced to what should have been produced.