What is Earned Hour in Garments Industry? How to Calculate Earned Hours? Why Calculate Earned Hours?

What is Earned Hour in Garments Industry?

We know that produced minute or earn minute is the multiplication of SAM and total piece produced. If these earn minutes are divided by 60, it converts to the Earned Hour. Here we divide 60 because 1 hour = 60 minutes.

How to Calculate Earned Hours?

To calculate Earned Hours, following factors we need to know.

✔ SAM of operations/garments
✔ Number of the piece produced

If we know the above information, we can calculate the Earned Hours easily by the following formula.

Earned Hours = (Number of Pieces Produced × SAM (Standard Minute)/60

If an operator does more than one operation, the production of both processes is counted and multiplied by their respective SAM. Then add them and divide by 60.

An example will clear everything.

Let's assume an employee doing collar join operation. She has produced 200 pieces on that operation. The SAM (standard minute) of that operation is 0.60 minutes.

Here,

SAM of operations = 0.60
Number of piece produced = 200

So,

Earned Hours = (200 × 0.60)/60
= 2 hours

Now let's assume an employee is doing collar and cuff join operation. She has produced 150 pieces of the collar and 120 pieces of the cuff. The collar's SAM (standard minute) is 0.60, and the cuff  is 0.40. what will be the Earned Hours for that operator?

Here,

We know that Produced Minutes = Production × Operation SAM
Produced minute for collar = 150 × 0.60 = 90 and
Produced minute for cuff = 120 × 0.40 = 48
Total Produced minute = 90+48 = 138
So Earned Hours = 138/60 = 2.3

Why calculate earned hours?

✔ To evaluate the operator performance

✔ It’s used to convert SAM to the dollar value