Question:
Answer:
I had the same experience when I was working in a garment export house. We were making knitted items and used piece-rate operators (provided by manpower contractors) for stitching garments. Our factory manager used to set up prices for each operation after analyzing the operations in a garment. To decide operation rates, he used his experience of how many garments an operator can make in a day, rates provided by the other factories for similar operations in that place.
Now, I know the scientific ways of estimating operation rate. I will share the procedure of calculating the operation rate and share articles for further reading.
When you calculate the piece rate for the garment operations, you need to consider these things –
- Operation SAM
- minimum daily wages and
- the operator’s capacity.
You also need operation SAM (standard minute) for deriving the actual cost of an operation. The scientific way of calculating an operation rate is as the following.
Operation Rate = (Operation SAM x Rate per minute)
Let us say, SAM of an operation is 2 minutes and the hourly rate is Rs. 60 (Rate per minute is Re 1). Therefore, the operation rate for this operation is 2×1=Rs. 2
If an operator makes 25 pieces per hour, his daily production will be 200 pieces. His daily earning will be Rs (200 x 2) = Rs. 400.
More reading on piece rate calculation
I have already published an article on this topic. For more understanding of piece-rate estimation, please read the following articles from my Blog and other sources.
- Determining garment Piece Rate from SAM
- How to justify the garment Piece rate
- Minimum wages and Piece rate pay by ILO.org
- Setting a fair piece rate for home workers
Note: If the calculated operation rate is less compared to the daily wages and an operator cannot earn the daily minimum wage by working the whole day (8 hours) then you need to give allowance to adjust daily minimum wages and operation is set accordingly.
Other parameters for calculating operation rate are
- The criticality and difficulty level of sewing operations,
- Type of sewing machine operator needs to handle
- Type of material operator needs to handle
I hope you will find this article helpful.

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