Course contents
Foundation · Course 9: Systems and Information · Lesson 3 of 5

How a purchase order, a tech pack and a costing sheet connect to each other

Level: FoundationTime: 45 minutesOrder used: A (the T-shirt)Tool: Information map sheet
This lesson is for anyone who works with a purchase order, a tech pack or a costing sheet: a merchandiser, a factory owner, a buyer, or a student. Lesson 9.2 (the systems that store these documents) is useful background but not required. Money figures are teaching examples in US dollars. At work, use the real numbers of your own order.
BuyerNorthline Apparel (overseas clothing brand)
FactoryDelta Garments (garment factory)
ProductBasic cotton T-shirt, Ne 30/1 combed cotton, 180 GSM
Quantity15,000 pieces
FOB priceUSD 3.20, built on a fabric cost of USD 1.15
DocumentsPurchase order, tech pack, costing sheet
02Opening

This page is for anyone who works with a purchase order, a tech pack or a costing sheet and needs to know when a change in one means the others are now wrong

An order's purchase order, tech pack and costing sheet are not three unrelated documents. They describe the same 15,000 pieces from three angles: the purchase order states the commercial terms, the tech pack states the product specification, and the costing sheet states how the price was built. A merchandiser who treats them as three separate filing jobs will miss the moment a change in one makes the other two wrong. This lesson mainly teaches the information flow: how a change should move from the document it starts in to the other two, and what goes wrong when nobody checks. By the end, you can look at a change to any one of the three documents and say, correctly, which of the other two it should be checked against.

03Before you start

What you need, and what this lesson does not cover

You need: the purchase order from lesson 4.1, the tech pack from lesson 8.2, and the costing sheet from lesson 7.1.

By the end of this lesson you can:

  • state the rule that links a purchase order, a tech pack and a costing sheet as three views of the same order;
  • recognise the four common variants: a quantity change, a fabric change, a cost change, and a change nobody traces at all;
  • trace a fabric change in the tech pack through to the costing sheet's fabric line and, if needed, the purchase order's price field;
  • calculate what an unrevised cost change silently costs an order if it is never traced through;
  • ask the four questions that tell you whether a change in one document has been correctly checked against the other two.

Not covered here: how a purchase order's own fields are checked for completeness (lesson 5.3), how the costing sheet's fabric line is built (lesson 7.1), and how information failures compound across a whole order (lesson 9.4).

04Key terms

Words you will meet in this lesson

TermMeaning
Purchase orderA document from a buyer confirming quantity, price and delivery date, which commits the buyer to pay for the goods it orders.
Tech packA document that specifies exactly what a garment is: measurements, fabric, trims, construction and artwork, that a factory produces against.
Costing sheetThe document that lists a garment's cost components and adds them to the price the factory quotes.
FOB priceThe price the factory charges for the garment, delivered on board the ship at its own port.
Fabric costThe cost of the fabric used in one garment, driven by fabric price per kilogram and consumption per piece.
Specification referenceA named or numbered tech pack or approved specification a purchase order points to, so both sides agree exactly what is being made.
Ripple effectThe way a genuine change in one document should flow through and be checked against the other documents built on it.
Single point of truthThe idea that, for any one fact about an order, there is one document that is correct, and every other copy of that fact should match it.
05Teaching
The rule

A purchase order, a tech pack and a costing sheet describe the same order from three angles, and a genuine change to any one should be checked against the other two

The purchase order states the commercial terms: quantity, price, delivery date. The tech pack states the product specification: what the garment actually is. The costing sheet states the price build-up: how the FOB price was worked out from its parts. These are not three independent facts. The costing sheet's fabric line is built on the exact fabric the tech pack specifies. The purchase order's price is built on that costing sheet. Change any one of the three, and the link that was true when the order was confirmed may no longer hold, unless someone checks it.

Tech packproduct specification Costing sheetprice build-up Purchase ordercommercial terms A change anywhere on this line should be checked in both directions, not only forward.
The tech pack, the costing sheet and the purchase order are built on each other, in that order. A change to the tech pack should be checked against the costing sheet and the purchase order; a change to either of the others should be checked back against the document it came from.
What you meet in real life

The same three documents, but the change can start in any one of them

What can differThe shapes you will meetWhy it matters to you
A quantity change on the purchase orderA buyer raises or lowers the ordered quantity after the order is confirmed.The per-piece price on the costing sheet may no longer hold at the new quantity, and the tech pack's fabric consumption figure, and any marker efficiency it assumes, may need rechecking at the new volume.
A fabric change in the tech packA different fibre, yarn count or fabric weight is specified after the purchase order is signed.The costing sheet's fabric line was built on the old fabric price; it is now wrong until it is rebuilt, and the purchase order's price field may need renegotiating once the new cost is known.
A cost change on the costing sheetA fabric price rise, a trims price change, or a labour cost increase changes one line of the costing sheet.The purchase order's agreed price should be checked: is the factory absorbing the change, or does the price need renegotiating with the buyer?
No document is checked at allA change is made in one document and nobody checks it against the other two, whether the order is a domestic Make to Stock reorder or an export Make to Order shipment.Without a formal system connecting all three, each document can silently go out of date relative to the others, and production can continue against a specification, cost or price that no longer matches reality.

Every one of these shapes needs the same response: identify what changed, and check it against the documents built on it, not only the document it happened to change in.

The case we follow

Order A: a fabric change in the tech pack would need tracing through the costing sheet and the purchase order

Order A's tech pack specifies Ne 30/1 combed cotton at 180 GSM. Delta Garments' costing sheet's fabric line, USD 1.15, is built on that exact fabric. Northline Apparel's purchase order FOB price, USD 3.20, is built on that costing sheet. All three documents currently agree with each other, because each one was built on the one before it. If the tech pack's fabric specification changed to a heavier GSM, the costing sheet's fabric line and the purchase order's price would both need updating: a change starting in one document, correctly traced through the other two.

DocumentStatesBuilt on
Tech packNe 30/1 combed cotton, 180 GSMThe design department's specification
Costing sheetFabric cost USD 1.15 per pieceThe tech pack's exact fabric
Purchase orderFOB price USD 3.20The costing sheet's price build-up
The worked number

A heavier fabric would raise the fabric cost and the FOB price by the same amount, to keep the same profit

This is a hypothetical for this lesson, not a fixed master figure: illustrating the ripple effect using Order A's own figures, if a heavier fabric raised the fabric cost from USD 1.15 to, say, USD 1.30 per piece, the FOB price would need to rise by the same amount to keep the same profit.

Fabric cost rise: 1.30 - 1.15 = USD 0.15 more per piece (hypothetical, not a master figure)
New FOB price needed to keep the same profit: 3.20 + 0.15 = USD 3.35 (hypothetical, not a master figure)
FOB price before and after a hypothetical fabric cost rise (per piece) Current FOB, USD 3.20 FOB needed if fabric rises, USD 3.35 (hypothetical)
A fabric cost rise that is never traced through leaves the FOB price too low. The bar for the hypothetical, higher fabric cost is only USD 0.15 wider than the current FOB price, the exact size of the rise that must be added.
The method

Five steps trace any change through an order's three core documents

  1. Identify which document the change originated in. A quantity change usually starts on the purchase order; a specification change starts in the tech pack; a price change starts on the costing sheet.
  2. Check the tech pack for any specification impact. Does the change affect a measurement, a fabric, a trim, or fabric consumption?
  3. Check the costing sheet for any cost impact. Does the change affect the fabric line, the trims line, or the making cost?
  4. Check the purchase order for any commercial-terms impact. Does the change affect the agreed FOB price, quantity or delivery date?
  5. Update every document that the change actually affects, not just the one it started in. A change that affects none of the other two still needs to be recorded as checked, not simply ignored.
The trap

A common mistake is assuming a change made in one document is someone else's problem to propagate to the others

A common mistake is to assume a change made in one document, say the tech pack, is someone else's problem to propagate to the others. Without a clear owner for checking all three, a fabric change can sit updated in the tech pack for weeks while the costing sheet and purchase order still reflect the old fabric, exactly the kind of information failure lesson 9.4 develops further. The tech pack looks correct in isolation; so does the costing sheet; so does the purchase order. None of the three people who last touched them may realise the three documents no longer agree with each other.

06In plain words

A purchase order, a tech pack and a costing sheet describe the same order from three different angles: the commercial terms, the product, and how the price was built. They are meant to always agree with each other. A quantity change on the purchase order can affect the costing sheet's per-piece price and the tech pack's fabric use. A fabric change in the tech pack can affect the costing sheet's fabric line and the purchase order's price. A cost change on the costing sheet can affect whether the purchase order's price still holds. Whenever a genuine change happens in one of the three, check it against the other two before you assume nothing else needs to change. If nobody owns that check, one document can quietly go out of date while the others look fine.

07Quick check
  • The purchase order, the tech pack and the costing sheet describe the same order from three angles: terms, specification, and price build-up.
  • A quantity change on the purchase order should be checked against the costing sheet's per-piece price and the tech pack's fabric consumption.
  • A fabric change in the tech pack should flow into the costing sheet's fabric line, and possibly the purchase order's price.
  • A cost change on the costing sheet should be checked against the purchase order's agreed price: is the change absorbed, or renegotiated?
  • Without a formal system connecting all three, each document can silently go out of date relative to the others.
  • Update every document a change actually affects, not only the one it started in.
08Workplace scenario

Northline Apparel's design team updates Order A's tech pack to a heavier fabric weight after the purchase order was already signed, without telling Delta Garments' merchandising team

Facts:

  • Order A's purchase order is already signed, at an FOB price of USD 3.20, built on a fabric cost of USD 1.15.
  • Northline Apparel's design team updates the tech pack to a heavier fabric weight.
  • Nobody on the design team tells Delta Garments' merchandising team about the change.
  • Delta Garments continues production planning against the signed purchase order and the original costing sheet.
Tech pack, revision 2. Fabric: Ne 30/1 combed cotton, heavier GSM than revision 1. All other measurements and construction unchanged from revision 1.

Does the factory's existing purchase order and costing sheet still apply once the tech pack changes? Decide before you open the answer.

Show decision

No, they do not still apply as they stand. The costing sheet was built on the original, lighter fabric named in tech pack revision 1. A heavier fabric changes the fabric cost, because more fabric weight per piece means a higher fabric cost per piece, which should flow through to a revised costing sheet and, potentially, a renegotiated purchase order price.

Two facts decide this together: the tech pack revision changed the specification the costing sheet was built on, and the purchase order's price was itself built on that now-outdated costing sheet. Continuing to produce against the old purchase order price while using the new, heavier fabric specification would leave Delta Garments absorbing an unplanned cost increase it never agreed to.

The method's steps apply directly here: the change originated in the tech pack; it has a specification impact (the fabric); it has a cost impact (the costing sheet's fabric line); and it has a commercial-terms impact (the purchase order's price). All three documents need checking, not just the tech pack that was actually edited.

09What it costs

What an unrevised fabric cost rise costs Delta Garments across the whole order

Using the illustrative figures from the worked number above: if Delta Garments continued at the old USD 3.20 FOB price despite an unrevised fabric cost rise to USD 1.30 from USD 1.15, it would silently lose USD 0.15 per piece across the whole 15,000-piece order.

Fabric cost rise per piece, not yet reflected in the FOB price: 1.30 - 1.15 = USD 0.15 (hypothetical, not a master figure)
Loss across the whole order: 0.15 × 15,000 = USD 2,250

That USD 2,250 is money the factory never planned to lose, entirely because a specification change was never traced through to the costing sheet and the purchase order. Against Order A's total order value of 3.20 × 15,000 = USD 48,000, that unrevised change alone would erase a meaningful share of the whole order's profit margin.

10Working template

Information map sheet: tracing a change across the tech pack, the costing sheet and the purchase order

The Information map sheet lists every order document, who creates it, who relies on it, and the risk if it is wrong. This lesson uses three of its rows.

DocumentCreated byRelied on byRisk if wrong
Tech pack / specificationNorthline Apparel (design)Delta Garments (production, quality)Whole run may be re-cut or re-made
Purchase order (NA-2291)Northline Apparel (buying office)Delta Garments (merchandising)Production should not start at all
Costing sheetDelta Garments (merchandising)Both companies' merchandisingA wrong line silently misprices the order

When one row changes, use "Relied on by" to see who must be told, and check the other rows' "Risk if wrong" before assuming the change is contained.

Download the Information map sheet (Excel)

11Check yourself

1. Which three documents does this lesson trace connections between?

2. If a tech pack's fabric specification changes after a purchase order is signed, what should happen?

3. A 5,000-piece domestic order's costing sheet shows a trims cost rising by USD 0.08 per piece, unrevised in the purchase order price. What does that unrevised order lose in total?

12Glossary
ENARFRTRMeaning
Purchase orderأمر الشراء (طلبية الشراء)Bon de commandeSatın alma siparişiA document from a buyer confirming quantity, price and delivery date, which commits the buyer to pay for the goods it orders.
Tech packحزمة المواصفات الفنيةFiche techniqueTeknik paketA document that specifies exactly what a garment is: measurements, fabric, trims, construction and artwork, that a factory produces against.
Costing sheetكشف التكلفةFiche de coûtsMaliyet tablosuThe document that lists a garment's cost components and adds them to the price the factory quotes.
FOB priceسعر التسليم على ظهر السفينةPrix FOBFOB fiyatıThe price the factory charges for the garment, delivered on board the ship at its own port.
Fabric costتكلفة القماشCoût du tissuKumaş maliyetiThe cost of the fabric used in one garment, driven by fabric price per kilogram and consumption per piece.
Specification referenceمرجع المواصفةRéférence à la fiche techniqueSpesifikasyon referansıA named or numbered tech pack or approved specification a purchase order points to, so both sides agree exactly what is being made.
Ripple effectأثر التتابعEffet d'entraînementDomino etkisiThe way a genuine change in one document should flow through and be checked against the other documents built on it.
Single point of truthالمرجع الوحيد الموثوقSource unique de véritéTek doğru kaynağıThe idea that, for any one fact about an order, there is one document that is correct, and every other copy of that fact should match it.
13Next

Lesson 9.4: Common information failures and what they cost

You now know how a change in one document should be traced through the other two. The next lesson looks at what happens when nobody does that tracing: wrong data, late updates, and version confusion. Back to the course map

14Ladder

RecognizeName the purchase order, the tech pack and the costing sheet as three views of the same order.
ConnectSee how a quantity, fabric or cost change in one flows into the other two.
CompareTell a change that needs tracing through all three documents from one that affects only the document it started in.
DecideTrace a change through an order's three core documents using the five-step method.