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Garment & RMG

Capacity Planning for Garment Factories: Matching Orders to Production Ability

How garment factories in Bangladesh calculate monthly production capacity to accept the right volume of orders. Covers lines, shifts, working days, SAM, and efficiency in one integrated planning approach.

Md. Qamrul HassanPublished 16 May 20267 min read

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Published on 16 May 2026 and maintained alongside the matching calculator so article guidance and tool logic stay aligned.

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CostNest articles are written to support the related calculator and prioritise official notices, standards, and primary-source references whenever a rate or formula matters.

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These guides are planning references built from common industry formulas and market assumptions. Always confirm live quotations, site conditions, and supplier specs before ordering.

Over-booking production capacity is one of the most destructive things a garment factory can do. It leads to delayed shipments, air freight costs, buyer penalties, and damaged relationships — all of which are preventable if capacity is calculated correctly before orders are confirmed. This guide explains how to calculate monthly capacity and use it as the foundation for order acceptance decisions.

The Capacity Calculation

Monthly production capacity is determined by how many minutes your factory can produce in a month, divided by the SAM of the garment you will be making. The available minutes depend on number of lines, operators per line, working hours per day, working days, and efficiency.

Formula
Monthly capacity (pieces) = (Lines × Operators per line × Working hrs/day × 60 × Working days × Efficiency %) / SAM

Example:
Lines: 5
Operators per line: 30
Working hours: 10 hrs
Working days: 26
Efficiency: 65%
Garment SAM: 15 minutes

Total available minutes = 5 × 30 × 10 × 60 × 26 = 2,340,000 minutes
Effective minutes = 2,340,000 × 0.65 = 1,521,000 minutes
Monthly capacity = 1,521,000 / 15 = 101,400 pieces

Why Capacity Varies by Style

The same factory with the same lines and headcount produces vastly different quantities depending on the SAM of the style. A simple t-shirt at SAM 8 produces far more pieces per day than a structured jacket at SAM 45. This is why capacity must be planned style-by-style, not just as a fixed monthly unit number.

Capacity vs SAM — Same Factory, Different Styles

StyleSAMMonthly Capacity (5 lines, 30 ops, 65% eff, 26 days, 10 hrs)
Basic t-shirt8 min190,125 pieces
Polo shirt13 min116,923 pieces
Woven shirt20 min76,050 pieces
Chino trouser28 min54,321 pieces
Structured jacket45 min33,800 pieces

Building a Capacity Loading Plan

Once monthly capacity per style is known, a loading plan maps each confirmed order against available capacity week by week. If total committed order minutes exceed available minutes in any week, you are overbooked — and must either add overtime, reduce intake, or negotiate delivery dates before production starts.

Tip

Keep 15–20% of monthly capacity as buffer when booking orders. Actual efficiency is always lower than planned in the first days of a style, absenteeism varies, and machine breakdowns happen. A factory that books 100% of theoretical capacity will run late on almost every order.

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Editorial note

Articles on CostNest are written to help readers understand the logic behind each tool, not just produce a number. If a figure on this page affects tax filing, property registration, healthcare, import costs, or any other high-stakes decision, confirm the latest official rule or professional advice before acting.

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