ANALYZING PRODUCTION COST OF SMALL AND MEDIUM SIZED ENTERPRICES IN TERMS OF SEWING DEPARTMENT PRODUCTION CONDITIONS

Under the current market conditions, it is compulsory for enterprises to use required resources at maximum productivity level during the production in order to survive and compete. The enterprise executives often have to make decisions to maximize their revenues or minimize their cost in the face of limited resources and accumulated demands. As a result of the programs without calculating the actual cost, the profit is less than the enterprises can get. In this case, reducing production cost issue gains more import day by day. Since the reducing production cost is a multidimensial problem, it is necessary to examine this issue from different aspects in garment industry. For this purpose, the production cost of enterprises with small production capacity which have a big and important role in Turkish garment sector have been investigated and also the main factors that are affecting the cost have been reviewed. In this study, a comparative analysis have been done through the data obtained from various enterprises, which produce same products in different zones, with similar production capacity and also the factors affecting cost as well as the effect rate of these factors are determined. The factors that affect the sewing department labor cost, which is ranked in the second place among the cost items after material and accessory cost, are analyzed and studied to reveal correlations between these factors and product unit cost.