Standard Minute Value(SMV) Calculation:

Standard Minute Value(SMV) Calculation:

The main objective of industrial engineering is:

1. To Increase Productivity
2. To eliminate waste and non-value added activities
3. To come up with the optimum use of scarce resources that 4. would bring out the best results.

Importance of SMV in the Apparel Industry:

1. SMV is calculated for doing costing of garments
2. It is used for calculation of target and set the right target
3. For Calculating the Efficiency of workers
4. SMV is calculated for making a plan and take effective factory production decision.

Calculation of SMV in Garments:

SMV = (Basic Time + Allocated Allowance)

The formula of Basic Time = Observe Time x Rating Factor

Basic Time: Basic time is the most likely time required to make garments considering observe time and applicable rating factors.

Observe Time: Time taken to do a work when an observer is observing closely and record the worker’s work speed.

Calculation of Observe

Time = Total Cycle Time is divided by Number of Cycle

Cycle Time: Cycle Time is the time between starting a garments manufacturing and finishing of those garments.

Rating Factor: Rating factor is assigned based on an evaluation of worker performance which is conducted through eye judgment. A worker can be fast, slow and rating is on a scale of 100% to lower.

Costing SMV is calculated for sending SMV information to buyers. Normally 5% additional time is added with the actual SMV.

Costing SMV = Actual SMV + (Actual SMV x 5%)