ROI FOR BASIC LEVEL AND HIGEST LEVEL OF

TECHNOLOGY

“PANEL SERGING

MACHINE FOR TROUSERS” Presented By:

Neha Samdani Prajjwal Dewaskar M.F.tech 3rd SEM

Panel serging • A serger is a machine that creates the finished

seam you see on the seams of ready made garments such as side seams in trousers,jeans,sweat shirts and tee shirts.

• Due to industrial influences, you will hear people refer to what home sewers have come to know as serging by many different terms, Overlock and Merrow (named after the Merrow Sewing Machine Company) are just a few.

Panel serging

1 thread O/L

2 thread O/L3 thread O/L

Basic Level of Technology• The basic level of technology for trouser panel

serging is :1. A 2/3/4- thread overlock machine with manual

handling of fly wheel for lifting the needle.2. The operators can be skilled or semi-skilled.3. Placement of fabric on machine bed should be at

correct width position.4. Operator needs to pay more attention while

sewing to maintain required and consistent width.

Machine Used

SUPPLIER: JUKICOST: $499

SUPPLIER: BRAITHWAITECOST: $459

Features

• Sewing Speed max. 1,500 spm• Needle household machine size 11 or 14• Overlock Width standard, 4 mm; rolled hem,

1.0 - 1.5 mm• Stitch Length 1 – 3 mm (standard: 2.5 mm)• Tension industrial type dial / 1 rotation• Built-In Rolled Hemming 2 or 3 thread

Features

• Universal Presser Foot tape, ribbon, narrow elastic application

• Presser Foot Lift 5 mm• 2 Thread for Overcastting • Easiest Built In Rolled Hemming • No need to change needle plate • Adjustable Stitch Length and Cutting Width • Overlock Serger and Overlocker • No Differential Feed on this Model

Intermediate level of technology

• The intermediate level of technology for trouser panel serging is:

• A 2/3/4- thread overlock machine with motor driven system for lifting the needle.

• It reduces work content for operator and fatigue as the speed of machine is higher and no manual handling of fly wheel for lifting needle.

Intermediate level of technology

• The operators can be skilled or semi-skilled.• Placement of fabric on machine bed should be

at correct width position.• Operator needs to pay more attention while

sewing to maintain required and consistent width.

Machine Used

MO-6900S Series MO-6900R Series (variable top-feed)

Specification

Supplier

• HOSEKI brand by GEMSY 757G Super High-Speed Overlock Sewing Machines Series

SUPPLIER: GEMSY 757GCOST: $799

SpecificationsModel 757GNo. Of needles 2No. Of threads 5Needle gauge 3mmStitch width 5mmStitch length 3.6mmDifferential ratio 0.7-2Height of presser foot 5.5mmNeedle DCx27 #11-#18Motor 3450 r.p.m. clutch motorSewing speed 7500 s.p.m.

• Automatic Serging Machine:• An automatic single head or double head work

station with or without computer programming.• An automatic machine with or without knee

lining.• The machine performed serging according to the

material used.• Flexible cloth guide can easily be adjusted in

height according to the material to be used.

Highest Level Of Technology

Highest Level Of Technology

• A dust extractor is equipped as standard in the upper looper arm section where dust is likely to gather.it helps prevent dust from accumulating inside the cloth chip cover.

• The machine comes with an air-blow table,which issues a jet of air from its air nozzles at three locations to contribute to smoother handling of material.

Highest Level Of Technology

• The operator simply places the fabric on the machine, and starts the machine.

• The operators can be semi skilled, no need of skilled operators.

Supplier: JUKIASN-690 series

SpecificationModel name ASN-690Machine head MO-6904S (super high speed,1needle

overlock m/c)Application Serging of pants , skirts , jeans etc Max. sewing speed 8,000 sti/minStitch length 0.8 to 4 mmOver edging width (mm) 4.0,4.8,5.6Differential feed ratio For gathering 1:2 (max 1:4),for stitching

1:0.7 (max 1:0.6)Needle DC x 27 (#11) #9,#14Thread trimming device Exclusive pneumatic side cutterLubrication AutomaticLubrication oil ISO VG 18Compressed air 0.5 MpaPower consumption 590 VAPower requirement Single-phase 200 to 240V,3-phase 200 to

380VMachine Weight Long table-160kg,short table-110kg

Supplier: DURKOPP ADLER 1365-5-2

ROI for Basic and Highest level of Technology

• The decision of which machine to purchase depends on the size of orders that a manufacturer gets and the kind of labor that is available.

• The higher we move up in the levels of technology for any operation, greater is the productivity and consistency of quality.

Basic Level of Technology

• We assume: Target production-1600trousers/day• Cost of labor = Rs 3000 per month• SAM value for serging both the front panels = 0.75 min• Production = 640 trousers per day (shift of 480 mins.)• Labor cost per day = 3000/ 26 = Rs 115.40 (month of

26 working days)• Labor cost per trouser = 115.40/ 640 = Rs 0.18• Cost of Machine= $ 499/- (rs.24950/)

ROI for Basic and Highest level of Technology

• Using advanced machinery also results in deskilling of labor; more is the automation, lesser is the skill required by an operator.

• Keeping all this in mind, we can calculate the ROI for the highest level of technology and find out how effective it is for an industry

Basic Level of Technology

• We assume: Target production-1600trousers/day• Cost of labor = Rs 3000 per month• SAM value for serging both the front panels = 0.75 min• Production = 640 trousers per day (shift of 480 mins.)• Labor cost per day = 3000/ 26 = Rs 115.40 (month of

26 working days)• Labor cost per trouser = 115.40/ 640 = Rs 0.18• Cost of Machine= $ 499/- (rs.24950/)

Highest Level of Technology

• We assume: Target production-1600trousers/day• Cost of labor = Rs 3000 per month• SAM value for serging both the front panels = 0.30 min• Production = 1600 trousers per day (shift of 480 mins.)• Labor cost per day = 3000/ 26 = Rs 115.40 (month of

26 working days)• Labor cost per trouser = 115.40/ 1600 = Rs 0.07• Cost of Machine= $ 30000- (rs.1500000/)

• ROI calculations for Basic and Highest level of Technology

• Formulas to be used:• Depreciated Value(DV) = NBV/{1+DR/100}n• where NBV = Net Book Value;• DR = Depreciation rate • n = Number of years• ROI for any year= [CM Price from total machine - total

operator salary till that year] ÷ Depreciated value of total machine, expressed as a percentage

Description Basic level of technology Highest level of technology

SAM value of per trouser 0.75min. 0.30min.

Production per day 640 1600

Production per annum 640x12x26=199680pcs(26 working days in a month)

1600x12x26=499200pcs

Production target 1600pcs 1600pcs

No. of machines required to meet the target

2.5~3 1

Salary per operator per annum

36000 36000

Total salary(A) 108000 36000

Cost of machine Rs.24950/ Rs.1500000/

Annual Depreciation 15% 15%

CM price per trouser Rs.1.44/ Rs.1.44/

Yearly CM price per machine

Rs.71884.8 Rs.718848

Yearly CM price(B) 71884.8x3=215654.4 Rs. 718848

Effective CM price constant [71884.8x3]-[36000x3]=107654.4/-

718848-36000=682848/-

CALCULATION OF ROI

Description Basic level of technology

Highest level of technology

Year 1Depreciated value ( c )

Rs.65087/ Rs.1304347.8/

ROI[(B-A)/C] 7.6% 32%

Pay Back 14 years 4 years

THANK YOU