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Key Performance Indicators in

Apparel Manufacturing

Prasanta Sarkar
Founder @ Online Clothing Study
www.onlineclothingstudy.com
WHAT IS KPI?
KPI stands for Key Performance Indicator.
Also known as performance metrices and performance
measuring tools.
KPIs are the primary parameters by which performance of a
business is assessed. These parameters are defined and
measured periodically (monthly or yearly) depending on the
KPI needs.
By measuring KPIs, performance benchmarking can be set
on different improvement parameters.
For a garment manufacturing unit, monthly revenue,
monthly production volume, shop floor productivity,
defective percentage, fabric utilization% are few examples
of the KPIs.
Let’s say, Sewing floor efficiency of a factory is 55%. This
indicates that there are lot of scope in improving factory’s
performance. You can set a target for achieving 90% line
efficiency in future.
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IMPORTANCE OF MEASURING
KPI
As a factory manager or a business head of a garment
production unit, one should know the performance level
of its various departments or in various processes.
Well defined KPIs and KPI results show the factory’s
performance level
Measuring KPIs is the first step to start any project on
process improvement. The baseline assessment is done
through measuring the KPIs.
Department and individual employees can assess their
performance by measuring the departmental KPIs.

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PRIMARY KPIS FOR A
GARMENT UNIT
What are the major KPIs measured by a garment
manufacturers?
The factory level KPIs and departmental KPIs are listed in
the following slides
These KPIs are enough for controlling of the apparel
production unit and listed departments.
But yes, one can extend the performance metrices.

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1. FACTORY LEVEL KPIS
1.1 Line Efficiency / Factory Efficiency
1.2 Man to Machine Ratio
1.3 Cut to Ship Ratio
1.4 Order to Ship Ratio
1.5 On Time Delivery rate
1.6 Right First Time Quality (RFT)
1.7 Quality Performance
1.8 Lost Time Percentage
1.9 Worker absenteeism rate
1.10 Employee Turnover Rate

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2. KPIS FOR CUTTING
DEPARTMENT
2.1 Marker Efficiency
2.2 Fabric Utilization
2.3 Labour Cost per piece

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3. KPIS FOR SEWING
DEPARTMENT
3.1 Line Efficiency
3.2 Lost Time Percentage
3.3 Defects per Hundred Units (DHU)
3.4 Percentage Defective Level
3.5 Man to Machine Ratio
3.6 Labour Productivity
3.7 Style Changeover Time
3.8 Labour Cost per Minute

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4. KPIS FOR FINISHING
DEPARTMENT
4.1 Right First Time Quality
4.2 DHU and Defective Percentage Level
4.3 Garment rejection rate
4.4 Labour Cost per minute

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5. KPIS FOR MERCHANDISING
DEPARTMENT
5.1 On Time Sample Submission rate
5.2 On Time Shipment Delivery rate
5.3 Sample Hit Rate
5.4 Sample Rejection rate
5.5 On Time Enquiry Response Rate
5.6 On Time Production File Handover Rate

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6. KPIS FOR QUALITY CONTROL
DEPARTMENT
6.1 Right First Time Quality
6.2 Defects per Hundred Units (DHU)
6.3 Percentage Defective Level
6.4 Shipment Failure rate

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7. KPIS FOR IE DEPARTMENT
7.1 Labour Productivity
7.2 Machine Utilization
7.3 Lost Time Percentage
7.4 Individual Operator Efficiency
7.5 Actual Cost Vs Target Cost

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8. KPI DASHBOARD
The detailed KPI report is
needed for data analysis and
understanding the
fact/information related to
the KPI.
For the management and
factory owners a KPI
dashboard is very useful.

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KPI MEASURING GUIDE
I have written an eBook on KPI Metrices for apparel
manufacturing industry. eBook is titled as

‘Garment Maker’s KPI: Why to


measure & how to measure?’
All the KPIs listed in the previous slides are explained in
this eBook.
Each KPI is discussed as following
 Define the KPI
 Why measure the specific KPI
 How to measure the specific KPI
 KPI calculation formula
 An example of KPI calculation

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KNOW MORE ABOUT THE KPI
EBOOK
Click on the below link to learn more about this eBook
http://www.onlineclothingstudy.com/2016/05/garment-
makers-kpis.html

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EBOOK ON KPI (COVER PAGE)

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EBOOK CONTENT
This ebook covers KPIs of the following departments. List
of primary KPIs are shown in the following pages.
Factory level KPIs
KPI for Cutting Department
KPIs for Sewing Department
KPIs for Finishing Department
KPIS for Merchandising Department
KPIS for Quality Department
KPIS for Industrial Engineering Department

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THANK YOU
Thank you for reading this presentation and your
valuable time.
Read my blog to learn more industrial engineering
applications in the apparel manufacturing sector.
You can contact me at
prasanta@onlineclothingstudy.com

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