Concept of SAM (Standard Allowed Minutes) and SMV (Standard Minute Value) in Garments Industry

In the modern fast-paced manufacturing environment, amped-up by the concept of assembly line and optimized resource utilization the most valuable resource is indeed Time.

Looking over the horizon of garment industry across the globe, we see that all manufacturers and consultants have long realized that time is practically money. So, everyone is furiously trying to discover different methods to save this precious time. The idea always is to find a fair time for each job to ensure a fair day’s wage for a fair day’s work.

However, to effectively utilize any resource, first it is vital to measure it and set necessary standards for monitoring.

Concept of SAM and SMV

Concept of measuring time – SAM & SMV

Measuring time in garments industry is pretty basic and standard stuff at the least, but crucial at the most. You can either use a Cycle Time based approach or Operation Time approach., depending on the degree of accuracy required. In garments manufacturing, there are generally two measures of time that are most valued above all; Standard Allowed Minutes (SAM) and Standard Minute Value (SMV).Some other measures used are Standard Allowed Hours, Timely targets etc.

The terms SAM and SMV are often used interchangeably, and very few people actually give it a second thought to what is the core difference between the two. It is often neglected but the two does have a minute difference between the two, conceptually.

What does Standard Minute Value or SMV mean?

Standard Minute Value, often refereed to as standard time is the time that is allocated to an operation based on the motion study of the operation. It is the time a qualified operator takes for the operation, when following the standard or the best procedure, at the standard performance.

How to calculate SMV:

1.      Breakdown of the operations

2.      Selection of the operation to be studied

3.      Time study of the operation selected earlier

4.      Calculation of the standard time required for the completion of operation

5.      Conversion of minutes to its wage value.

Let us consider an example to start with;

The operation let’s consider is the sole attachment of a standard running shoes, where the upper is already stitched to the insole and glued properly; and the treated sole and upper is to be attached in a pressing machine. The operation takes about 30 seconds to heat up both portion to an optimal level of 58-62 degree Celsius, and pressed from all side for 10 seconds.

The SMV for the operations will be  40 seconds, and hence basic minutes are 0.66. The minute value for any manufacturing unit or an organization is decided by the production planning department, in coordination with finance, audit and management based on a fair wage policy. Here let us consider that a fair wage is 10 Rs. Per minute. So the SMV for the operation will be simply 6.66.

SMV is considered the best mode of practice in garment industry because of one simple reason; to make sure that wages are fair and time value keeps management focus on the bigger picture in terms of planning. SMV also makes it easier to monitor the effect of improved process on the throughput and lead time.

What does Standard Allowed Minute mean?

Standard allowed minute, another measure is again one of the most preferred methods in telling us how much time is allocated for a certain operation or a whole job to get done.

SAM is the measure of time for an operation after incrementing allowances like environmental and process. The most important allowances are hence; bundle allowance, machine allowance and personal allowance. The allowances are added to the basic minute (an average time of operation, observed more than five times to ensure its not biased) calculated for the operation. SAM is always calculated at a 100% efficiency of the process and needs to be corrected further with expected efficiency for target setting.

In most manufacturing units achieving a 100% efficiency is a myth; so the most logical solution for the planners is to calculate targets on the basis of 85% efficiency. For more problematic setups, the targets are to be calculated by employing utilization charts to determine what is the actual efficiency of the system.

How to calculate SAM:

The general formula goes like;

            SAM = Basic Minute + (Basic Minute * Standard Allowance Percentage)

Where;

            Basic Minute = Average Observed Time * Rating

            Average Observed Time = Sum of the Time / No. of Observations

Let us consider an example;

Considering the same operation we discussed above, the basic minute was 0.66

Let us add the bundle allowance = 10%, which is=10% of 0.66 = 0.066 

Machine and personal allowance = 20%, which is= 20% of 0.66= 0.132

Adding the allowances to basic time we get,

SAM = 0.66 + 0.066 + 0.132 = 0.858 min

Measurement is the basis of all and everything in a manufacturing setup. SAM and SMV allows you to get a better understanding of your resources and how you can better manage these resources. As Pearl Zhu rightly said;

What gets measured gets managed.

If you have anything you would like to add related to these concepts, please let us know in the comments below. We would be delighted to start a fruitful discussion.