Title of the Course: Clothing Economics and

Course Manager: Prof.Dr.S.Kathirrvelu

Costing

Course Code: Greg 5215

ECTS Credits: 4

Office location: Room No.H-13, Selam Campus

Consultation Hours: Saturday: 10.00 am to 500 pm
Do not hesitate to come and ask questions if I am available in my
office out of the indicated time line.

Mobile: 0938854357

Lecture days &Hours:

Days:

Time:

Room:

Monday & Thursday

9.50 to 11.35 am-5th GE-C

5th GE-C-R17

4.15 to 6.00 pm- 5th GE-B and

5th GE-B-R17

Thursday 8.00 to 9.45 am 5th GE-A

5th GE-A-R16

Email: drskathirvelu@gmail.com

Target Group: B. Sc. in Garment Engineering

A. COURSE DESCRIPTION
OBJECTIVES OF THE COURSE
The course aims to give clear understanding to the students in the following issues
Know the basic concepts of money and time, their relationship.
Perform Calculation of future worth, present worth, and interest rate.
Know basic concepts of depreciation and methods of determining depreciation.
Know economic analysis of industrial operations.
To understand the proper choice and application of machines /equipments and other accessories
requirements
Learn terminology and the techniques for cost analysis
Understand Cost analysis, cash flow and cash flow diagrams.
To understand cost implication (cost determination and control)
Recognize and evaluate fabric characteristics as related to garment style and cost
Valuate construction techniques and technology relationship to garment costs,
Recognize and apply fabric utilization efficiency principles to construct one or more garments and
accessories

B. TENTATIVE SCHEDULE OF LECTURE TOPICS AND READINGS

N Week
Topic
Reading and
Tutorial
o.
assignments
1
1
Section 7: Introduction to costing: Cost components, Listen to the lecture, study Simple calculations on costing.
Introduction of costing tools, Costing techniques in Apparel the given material and do the
industry, Cost process flow, Costing sheet, Calculation of tutorial.
Gmt/Kg ratio
2

8
9

Section 1: Analysis of costs: Fixed cost, Variable cost/Marginal Listen to the lecture, study Calculations on analysis of costs
the given material and do the
cost, Average or unit cost, opportunity costs
tutorial.
Section 2: Time value and money: Basic concepts, cash flow Study and discussion on Calculations on Time value of
money
and cash flow diagrams, present worth, future worth, interest, supplied publications
opportunity costs, sunk costs, inflation.
Section 3: Uniform series of payments, Calculation of present
worth and future worth; Calculation of periodic payment;
Perpetuities.
Section 4: Depreciation: Basic concepts, Methods; straight-line

Listen to the lecture, study Calculations on Depreciation

the given material and do the
tutorial.
Listen to the lecture, study Calculations on alternative
the given material and do the methods.
method, sum of years digit method, declining balance method,
tutorial.
units of production method.
Section 5: Cost of comparison of alternative methods, Selection
of interest rate, costs of present worth, capital, and equivalent
annual.
Section 6:
Economy analysis of industrial operations,
Definitions, minimization of cost, break-even analysis.

Listen to the lecture, study Calculation

of
fabric
the given material and do the consumption
tutorial.
Listen to the lecture, study Calculations on cost of trims.
the given material and do the
tutorial.
Mid Examination (As per the date announced by the University)

Section 8:

Calculation of cost of garment: Direct cost,

Labour rate, Overhead and annual budgets, Computation

of Materials Costs, Labour & Overhead Costs
2

Listen to the lecture, Calculation of cost of garment

study the given material
and do the tutorial.

10

11

12

13

Section 9: Basic apparel costing and consumption:

Understanding the marker manipulation & efficiency, Using
Area Method To Compute Estimated Fabric Consumption, Using
Industry Method To Compute Estimated Fabric Consumption,
Fabric Weights Expression & Conversion, Gross weight of other
components of garment, Fabric cost per kg, Fabric cost per
garment, Other charges (print, embroidery, etc)., Cost of trims
(labels, tags, badges, twill tapes, buttons, bows, etc). CMT
charges, Cost of accessories (hangers, inner boards, poly bags,
cartons, etc), Cost of a garment, Price of a garment
10 Section 10: Production Systems and Cost Analysis: Impact of
technology in decision making in sewing room - parameters for a
particular style
Cost effectiveness of different production systems, human skill
level and systems of remuneration.
11 Section 11: Quality Systems and Cost Analysis
Assessment of costs of quality- control parameters employed by
a garment manufacturer and the cost benefit analysis.
Understanding co relation between manufacturing processes and
quality management systems and analysis of cost effectiveness
12 Section 12: Indirect cost factors analysis: Analysis and
calculation of indirect expenses in a garment manufacturing unit

Listen to the lecture, study Calculations on Basic apparel

the given material and do the costing and consumption
tutorial.

Listen to the lecture, study Calculations on Basic apparel

the given material and do the costing and consumption
tutorial.

Refer to the hand-out

Refer to the hand-out

Compilation of the first 5

tutorials

Compilation of the first 5

tutorials

and its relation to a particular style and total output

14

13 Section 13: Health and Safety measures and cost Implications

Costs related to regulations for health and safety requirements in

Compilation of all the tutorials

Refer to the hand-out

garment manufacturing
15
16

14

Revision and discussions

Refer to the hand-out

Final Examination (As per the date announced by the University)

3

C. ASSESSMENT METHODS
Evaluation by Examination (Weight 65%)

Continous Assessment= 35%)

Assignments (2 X 5.5 ):

Mid-Term Examination: 25 %

Tutorials

Final Examination:

Quizzes : (2 x 6)

Total

40 %
65%

( 1 X 10):

Total

11 %
12 % (10+2*)
12%
35 %

*1 bonus mark for each of the timely submission for the two sets of 5 tutorials

The lecture and tutorial parts of the course will each be evaluated together for 100%. The lecture part includes
quizzes, assignments, mid examination, and final examination; and the tutorial part includes evaluation of 10
tutorials. The evaluation details are as given above.
Quiz 1 will be conducted before the midterm examination and Quiz 2 will be conducted after the midterm
examination. Similarly, assignments 1 and 2 will be done one in each half of the semester. The two sets of the
tutorials (5 each) will have to be submitted for the tutorial evaluation, one before the mid-term exam and one
after the mid-term exam.
D. COURSE POLICY
All students are expected to abide by the code of conduct of students (article 166 and 166.1.1, of The Senate
Legislation of Bahir Dar University May 20, 2005) throughout this course. Academic dishonesty, including
cheating, fabrication, and plagiarism will not be tolerated and will attract disqualification in terms of
suspension or reduction of marks. The assignments should be completed in time. You are required to submit
and present the assignments provided according to the time table indicated. Directions, will be given if
necessary, for the assignments will be given one week prior to their due date though they are explained at each
content of your course guidebook. All issues discussed in class or derived from other sources (where I
provided you to read) may be the subject of assignment or final exam question items. Note on class attendance
and participation: You are expected to attend class regularly. Regularity and punctuality is mandatory and at
least 90% attendance is required for appearing in the final exam. The classes will be interactive in nature and
the performance during the interactive sessions will be considered while marking assignments. Class activities
will vary day to day, ranging from lectures to discussions. Questions or doubts will be entertained in the last
15 20 minutes of the lecture hour and you are welcome at any time during the working hour to clear any
other doubt or for any personal consultation.

Cell phones: Cell phones MUST be turned off before entering the class as they are disruptive and annoying to
all of us in the class.
E.Required reference books:

1. Max Kurtz, Engineering Economics for professional Engineers.

2. Leland T.Blank, Engineering economy.
3. Ralph S. Polimeni, Cost accounting.
4. T.R Banga, Industrial organizations and Engineering Economics, 2003, Khanna Publishers.
5. Costing of Apparel for the fashion industry Michael Jeffry
6. Apparel Manufacturing Glock and Kunz.
7. AAMA Report Predicting cost in changing environment.

Dr.S.Kathirrvelu
Course Manager

Garment LRI Coordinator

Ato. Degu Melaku

Educational Quality Assurance Officer

Signature

Signature

Signature