Apparel Manufacturing Management Production Terminology/FIDM/Apparel Process

• Bundling: Bundling is when the garments are stacked, after they are cut-out, and separated from the lay, they are folded and tied. Bundles are also sorted and grouped together according to pattern size.
• Cost Sheet: A cost sheet is included in the tech pack. A cost sheet is detailed and contains the prices of every component of the garment, including labor and markups.
• CMT:  CMT stands for cut, make and trim. The factories that provide CMT services provide the complete service of producing a garment. The factories cut the fabric, sew the garment, attach the trimmings like hangtags, buttons, labels, etc. Some CMT factories may subcontract some of the work, however, usually they will manage the entire production process. 
• Cutting ticket: 
• Fabric Inspection/Quality Control: Fabric Inspection refers to the process of inspecting the fabric that is purchased from the mill. It is good to inspect the fabric before it is spread for cutting. Some factories inspect during spreading, however, it may be unrealistic for the spreader to be responsible for the inspection. There are several good inspection systems for measuring the quality of fabric, two of the systems used are the Ten Point System and The Dallas System. There are many levels of fabric quality control. The AATCC (American Association of Textile Chemists and Colorists, is a not for profit association serving textile professionals. Detailed quality control testing can be found on their web site: www.aatcc.org. One example of quality control for textiles is the abrasion resistance of fabrics, and there are many, many,more. 
• FOB: FOB stands for Freight on Board. This means that they are quoting you a price for the goods excluding the cost of freight charges and duty into the US. You will have to pay the freight, clearance charges, duty, etc. This can be an indication that the company you are dealing with is being brokered, but not in all situations.  Another consideration when purchasing good FOB is this. Is the price you are being quoted FOB factory or FOB port? In other words, does the price include freight to the port exportation? Usually, it is better to have the price FOB port and have the price include transportation to your freight forwarder at the port. 
• FOBQ: FOBQ means Freight On Board Including Quota. This means that you, the buyer of the goods, will pay all the costs associated with freight charges, duty, and quota premiums when bringing the goods into the US. 
• Full Package: Full package pattern making includes services such as first patterns, production patterns, marker grading, line sheet design, technical packages, flat sketching and product photography. One example of a full pattern and design service is Smart Pattern Making, Los Angeles, CA. 
• Importing: Importing is when merchandise is bought offshore and brought into another country to sell. In our case, the merchandise is brought into the United States.
• Inventory: Inventory is the current record made by a retailer or manufacturer of its goods or stock. Sometimes the current stock is referred to as inventory as well.
• LDP:LDP stands for Landed Duty Paid. This means that the factory quotes you were given for merchandise includes the freight charges to the US and includes duty charges as well. Duty is the tariff. 
• PLM: PLM stands for Product Lifecycle Management. This is software that is geared to the needs of the apparel industry. This is an all inclusive solution of software that consolidates design, production and business process management in a single environment. This software provides a centrally managed data system.
• Private Label: A private label is merchandise that includes a retailer’s label on a garment. The retailer has some, or full, control over the garment that is manufactured.
• Production patterns: A production pattern is the perfected first pattern that is ready and graded for production. 
• Quotas: An import quota is a type of protectionist trade restriction that sets a physical limit on the quality of a good that can be imported into a country in a given period of time. Some people say that quotas lead to corruption, smuggling, and result in higher prices for consumers. 
• Tariffs: Tariffs are taxes levied on imported or exported goods. There are many different types of tariffs, such as a specific tariff, a revenue tariff, a prohibitive tariff, a protective tariff, and an environmental tariff.
• Turn time: Turn time is the amount of time it takes to get the job finished. For example, for pattern making, hiring a full package company turn time is likely to be faster because the jobs can be done all at one time and place. 
• Wholesale Price-vs-Retail price: The wholesale price is the price charged by the manufacturer for the goods. The wholesale price is based on the cost to manufacture the goods, plus profit. The retail price is the full price the consumer pays for the garment in the store. 
• PDM: PDM (Product Development Management) is software that provides state of the art applications geared for the apparel, home furnishings, and accessory industries.