ROI FOR BASIC LEVEL AND

HIGEST LEVEL OF TECHNOLOGY

PANEL SERGING MACHINE
FOR TROUSERS
1
Presented By:
Akhilesh Sahu
MFT/14/508
M.F.tech 3rd SEM
10/26/15

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.

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Panel serging

1 thread O/L

2 thread O/L

3 thread
O/L

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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.

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Machine Used

SUPPLIER: JUKI
COST: $499

SUPPLIER:
BRAITHWAITE
COST: $459
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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

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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 Over lock

No Differential Feed on this Model

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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.

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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.

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Machine Used

MO-6900S Series MO-6900R Series

(variable top-feed)
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Specification

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13

Supplier
HOSEKI brand by
GEMSY 757G Super
High-Speed Overlock
Sewing Machines
Series
SUPPLIER:
GEMSY 757G
COST: $799
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Specifications
Model

No. Of needles
No. Of threads
Needle gauge
Stitch width
Stitch length
Differential ratio
Height of presser foot
Needle
Motor
Sewing speed

757G
2
5
3mm
5mm
3.6mm
0.7-2
5.5mm
DCx27 #11-#18
3450 r.p.m. clutch
motor
7500 s.p.m.

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Highest Level Of Technology

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.

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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.

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17

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.

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18
Supplier: JUKI
ASN-690 series

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Specification
19
Model name
Machine head
Application
Max. sewing speed
Stitch length
Over edging width (mm)
Differential feed ratio

ASN-690
MO-6904S (super high speed,1needle overlock m/c)
Serging of pants , skirts , jeans etc
8,000 sti/min
0.8 to 4 mm
4.0,4.8,5.6
For gathering 1:2 (max 1:4),for stitching 1:0.7 (max
1:0.6)
Needle
DC x 27 (#11) #9,#14
Thread trimming device Exclusive pneumatic side cutter
Lubrication
Automatic
Lubrication oil
ISO VG 18
Compressed air
0.5 Mpa
Power consumption
590 VA
Power requirement
Single-phase 200 to 240V,3-phase 200 to 380V
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Machine Weight
Long table-160kg,short table-110kg

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Supplier: DURKOPP ADLER

1365-5-2

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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.

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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/)

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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

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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/)

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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

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PANEL SERGING MACHINE FOR TROUSER S

Number of Operations
26 for single operation(min)
Sam value
Production per day (shift of 8 hours)
Working days /month
No. of months /year
Production per annum
CM price per pocket(INR)
Cost output/annum (Value Generated in
INR)
Production Target( pcs/day)
No of machine required
Cost of one machine (Rs.)
Cost of total machine (Rs.),T
Annual Depreciation(%)
Depreciated value of m/c aftr oneyear (Z)
Monthly Salary of one operator(INR)
Total operators salary (Y)
CM price from total m/c (X)
Cash Inflow (I)(Net Value Earned)
ROI for the first year,(X-Y)/Z
Pay back Period (T/I)

Basic Level of
Technology
0.75
640
26
12
199680
1.44

Advanced Level of
Technology
0.30
1600
26
12
499200
1.44

71885
1600
3
24000
72000
0.15
62609
3000
108000
215654
107654
171.95%
0.67

311500
1600
1
1500000
1500000
0.15
1304348
3000
36000
718848
682848
52.35%
2.20

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compresion between Basic Level & Advanced Level of Technology

27

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

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Basic Level of Technology

Advanced Level Of Technology

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CALCULATION OF ROI in Basic

Level

Dep. Rate
Initial Value

0.15
Value Year 1
7200062608.70

Value Year 2

Value Year 3

Value Year 4

Value Year 5

54442.34

47341.17

41166.23

35796.72

Total CM Earned

862617.60

862617.60

862617.60

862617.60

862617.60

Expenses

108000.00

108000.00

108000.00

108000.00

108000.00

Net Value Earned

754617.60

754617.60

754617.60

754617.60

754617.60

ROI

1205.29

1386.09

1594.00

1833.10

2108.06

Cummulative Return

1205.29

2591.38

4185.38

6018.47

ROI in Year

0.08

Number of Months

1.00

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CALCULATION OF ROI in Advanced

Level

Dep. Rate

0.15
Value Year 1
15000001304347.83

Value Year 2

Value Year 3

Value Year 4

Value Year 5

1134215.50

986274.35

857629.87

745765.10

Total CM Earned

718848.00

718848.00

718848.00

718848.00

718848.00

Expenses

36000

36000.00

36000.00

36000.00

36000.00

Net Value Earned

682848.00

682848.00

682848.00

682848.00

682848.00

ROI

52ti.35

60.20

69.24

79.62

91.56

Cummulative Return

52.35

112.56

181.79

261.41

ROI in Year

1.91

Number of Months

22.92

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Thank you
10/26/15