How to measure manufacturing production capacity?

Struggling to meet order deadlines or optimize your factory's output? You’re not alone. Understanding production capacity is key to staying competitive in the garment industry.

Production capacity is measured by calculating the maximum output a factory can achieve within a specific period, factoring in machinery, labor, and working hours (learn more on how to calculate production capacity in garment industry¹).

But how exactly do you calculate it for garment manufacturing? Let’s dive deeper.

How to calculate factory capacity in garment industry?

Knowing your factory's capacity helps in planning production schedules and meeting delivery timelines without overburdening resources.

Factory capacity in the garment industry is calculated by multiplying the total number of machines by the standard working hours and the average production rate per machine.

Factory Manager Monitoring Production

Breaking Down the Formula

To calculate capacity:

1. Total Number of Machines: Count all functional machines in your factory.
2. Working Hours: Multiply by the number of operational hours per day.
3. Production Rate: Estimate the average number of garments produced per machine per hour.

Example Calculation:
If you have 50 machines, each operating 8 hours a day, producing 20 pieces per hour:
Factory Capacity = 50 machines x 8 hours x 20 pieces = 8,000 pieces/day

This calculation assumes full efficiency. In real scenarios, factors like machine downtime², worker efficiency, and maintenance reduce actual output.

How do you calculate productivity in garment industry?

Productivity reflects how efficiently resources are used to produce garments, not just how much is produced.

Productivity is calculated by dividing the total output (number of garments) by the total input (labor hours). (Find tips to improve garment productivity³)

Measuring Efficiency Accurately

The basic formula for productivity is:

Productivity = Total Garments Produced ÷ Total Man-Hours Worked

Example Calculation:
If 500 garments are produced using 1,000 labor hours:
Productivity = 500 ÷ 1,000 = 0.5 garments per hour

To improve productivity, focus on:

• Training workers to increase speed.
• Reducing machine downtime.
• Streamlining workflows to minimize idle time.

What is KPI in garments industry?

KPIs help monitor performance and guide improvements in the production process.

Key Performance Indicators (KPIs) in the garment industry measure efficiency, quality, and timeliness, such as defect rates, on-time delivery, and machine utilization. (Check garment industry KPI definitions⁴)

Key Metrics You Should Track

Common KPIs include:

Tracking these KPIs helps in pinpointing problem areas and making data-driven improvements.

What is the difference between production and productivity in garment?

Though often confused, production and productivity measure different aspects of factory performance.

Production measures the total quantity of garments made, while productivity evaluates how efficiently resources are used to create those garments.

Why This Distinction Matters

• Production:
  Focuses on output volume. A factory can produce 10,000 garments a day, but if it uses excessive resources, this isn't efficient.

• Productivity:
  Focuses on resource efficiency. A smaller factory producing 5,000 garments with fewer workers and machines might be more productive.

Example Scenario:

• High Production, Low Productivity: Using 200 workers to produce 10,000 garments.
• Low Production, High Productivity: Using 100 workers to produce 7,000 garments.

In the long run, focusing on productivity ensures sustainable growth and cost efficiency.

Conclusion

Understanding and measuring production capacity, productivity, and KPIs are crucial for optimizing garment manufacturing operations.