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CHAPTER-1
INTRODUCTION
Page no. 1
1.1 Introduction:
Bangladesh is heavily involved with production of woven garments. Unfortunately
we have import nearly 70% of fabrics that we export as garment. We can only
produce only 30% woven fabrics locally. Due to import of woven fabrics huge
amount of our foreign currency goes to the fabric producing countries. If we
increase production of woven fabric then the earning RMG sector may increase
several times. There are many problems lies with our poorly oriented woven
sector. One of the important reason problems may be our costing.
Costing is the most important aspect of any business organization. Both over
costing and under costing have equal and harmful impact on the organization
profit & loss and ultimate survival. An attempt has been made in this project work
to study the costing procedure adopted by Bangladeshi mills. Since costing is
highly secret matter therefore it was not possible to get adequate response from the
industry. However we have tried our best to gather information which are reported
in this project thesis.
Page no. 2
CHAPTER-2
LITERATURE SURVEY
Page no. 3
Cost of woven fabric is the main concern of a garment merchandiser.
Reported Primary issue that affect costing of woven fabrics
2. 1 Primary issue that affect costing of woven fabrics
Costing is a very complex procedure, with set patterns and guidelines
followed by the industry, and it is difficult to find out costs for every
process as there are some inbuilt costs while costing.
Woven fabrics are used worldwide for many applications like apparel, home
furnishing, and accessories, industrial and medical textiles. It is estimated that the
global production of woven fabrics will grow 35 million tones by 2010 and most
of this growth will be in Asia. It is also estimated that Asia will emerge as the
biggest market for sourcing of fabrics for the garment and apparel industry.
Costing of woven fabrics for garment manufacturers is one of the most important
aspects of garment production. About 65 - 70% cost of the garment is the cost of
the fabric and hence, it is very crucial to get the right cost of the fabric from fabric
manufacturers and suppliers.
A large variety of fabrics are used in the export/domestic market for different end-
uses. Buyers send specifications and the fabric has to be developed as per the
design trend. Garment manufacturers source fabrics with specific construction and
characteristics in different quantities for different end-uses. Garment
manufacturers struggle to get the best possible cost of the fabric. It would be
interesting to know the important points to consider for getting a comprehensive
understanding of costing. Costing seems to be a complex exercise as it depends on
a number of variables. Costs are calculated taking into consideration the complete
production process and machinery involved. However, in this article, the authors
consider only the commercial costing keeping in mind the manufacturing cost and
wet processing cost.
2.1.1 Factors needs to be considered before costing:
i) Direct cost: Cost of raw material 66%. Cost of size and chemicals 4%.
Production cost comprising of running the machine, maintenance, power fuel,
humidification and other utilities 8 % and worker wages and salaries 8% losses
incurred due to shrinkage, wastage, grading, and also selling commissions.
ii) Indirect cost: Interest on investment, loan, working capital, depreciation, etc.
Above 7%, overheads and administrative expenses like traveling, telephone,
couriers, legal issues, taxes comprising of 7%.
Profit: 10 - 20% depending on the order size. In some companies, 70% of the
fabric cost will comprise of direct cost, but in corporate selling only 40% cost of
the fabric is direct cost and 60% is overheads.
Page no. 4
2.2 Factors which affect the cost of woven fabrics.
Factors which are considered in calculating cost of woven fabrics.
2.2.1 Type of raw material
Raw material cost includes cost of fiber or yarn. The cost of the fiber will depend
largely on its generic type - cotton, linen, wool, silk, rayon, nylon, polyester,
polyester cotton blend etc, and also its quality. The Yarn cost will depend on the
count of the yarn, finer the yarn, more expensive it will be. Carded or combed:
Combed yarns are more expensive than carded yarns as yarn realization is only
about 70% incase of combed yarns because short fibers are removed where as in
case of carded, the yarn realization is about 88%. Combed yarns have more luster
and strength than carded yarns. All finer counts above 40s are generally combed
yarns. Method of spinning-open-end or ring spun. Open end yarns are cheaper as
the cost of manufacturing is less. It is used for coarser yarn count below 20s.
The cost of man-made spun yarns will depend on the fineness -finer the yarn,
more expensive it is. Number of fine filaments used in making the yarn will also
affect the cost. Bright or dull Bright yarns are more expensive than dull. Textured
yarns are more expensive than flat because of the additional process cost.
2.2.2 Amount of raw material or GSM of the fabric
Amount of raw material is reflected by the weight or GSM (grams/sq mt) of the
fabric. GSM is directly dependent on the EPI and PPI or construction of the fabric
and is inversely proportional to the count of the yarn. Relation between GSM and
cost is a little complex. For the same variety of the fabric, as the GSM increases
the cost increases.
But when the yarn becomes very fine and there is a variation in picks per inch in
the fabric, then the cost of spinning and weaving plays a more important role than
the GSM and even when the GSM is similar, the cost of voile fabric with finer
yarns and more picks per inch is more.
Weight of the fabric is the weight of warp and weft which can be calculated by the
formula below:
Weight of warp in grams/sq mt of fabric
=(EPI x 0.6 )/ (Count of Warp = A)
Weight of weft in grams/sq mt of fabric
= PPI x 0.6 /( Count of Weft = B)
GSM = A+B
2.2.3 Sizing and Chemicals Cost
The sizing cost depends upon the count of the yarns. The count becomes finer the
size and chemical cost increases as a rich solution, better quality of size and
chemicals is required for better strength.
One needs to add $ 2/lb as additional cost which includes steam, power or wages.
For two plied yarn no sizing is required.
2.2.4 Production cost or cost of weaving process
It includes machine running cost, maintenance, labour cost, power & fuel, etc. The
Page no. 5
weaving cost is affected by the beam size, if the beam is small in length, the cost
will be more as beam gaiting and knotting will add to the cost.
2.2.5 Mill-made or power loom made:
The quality of mill-made fabrics is better than power loom made fabrics in terms
of yarn quality; Therefore the cost of fabric is higher. At times it can be as high as
25%.. eg, the cost of 40s Poplin 92 x 88 can vary between $0.65/mt and $ 1/mt. It
depends on the type of loom whether power loom, rapier, air-jet, dobby or
jacquard and the weave and construction.
The weaving cost is expressed as paisa /pick/inch/sq mt. The cost of weaving is
different for different weaves. The cost of weaving for rapier loom for plain weave
40" width fabrics = 0.25 tk/pick/inch/sq mt which means that for a 120 inch width
fabric the cost will be 24 paisa/pick/mt.
For twill weave, the cost =0.4 tk/pick/inch/sq mt.
For satin weave, the cost = 0.4 tk/pick/inch/sq mt.
In case of P/V suiting, the cost ranges from 0.45 paisa/pick to 0.6tk/pick. For
1,000 m beam with dobby, the weaving cost is 0.51tk/pick and for 1,000 m beam
with jacquard is 0.6tk/pick.
For dobby, the cost = 0.3tk/pick/inch/sq mt.
For 2400 hook jacquard the cost = 1tk/pick/inch/sq mt.
For double beam fabrics like seer sucker, the cost is = 0.6tk/pick/inch/sq mt.
There is no standardization in dobby and jacquard fabrics. For yarn dyed stripes
and checks in loom the efficiency is affected by the number of colors in the weft
but mill-made stripes and checks are made on Sulzer loom in which the production
is not affected by the number of colors in the warp or weft.
2.2.6 Wastage and shrinkage
Wastage of 2 - 3% in warping and weaving and shrinkage of 1 - 1.5% from loom
to grey folding stage is included in the weaving cost. About 92% of the fabric
produced is sold as fresh. The value loss is about 7% while running cotton
material but is only 3% in using polyester yarn.
2.2.7 Dyeing costs :-
2.2.7.1 Cost of dyeing depends upon:
Length:
A minimum of 2,000 mt of fabric is accepted, if the quantity of the fabric is more
say 15,000 mt or 20,000 mt, then the processing charges will be lowered by 3-
4tk/mt.
Width of the fabric:
If the width of the fabric is doubled, the cost of the processing is not doubled. So it
is beneficial to go for wider width fabrics rather than fabrics with more length.
This is because the overheads and cost of running the material are dependent on
the length and not the width. Eg, the cost of dyeing 40" width poplin is 25tk, but
the cost of dyeing 120" width fabric is 50tk.
Shade%:
Lighter the shade lower the cost. The amount of dye required is less as well as
Page no. 6
time required for dyeing is less. Eg, for dyeing pastel shades if it takes 24 hours, it
takes 36 hours for dyeing black shades and burgundy colour.
Class of dye and quality:
Some dyes are more expensive than the other. Eg, Vat dyes are more expensive
than reactive dyes and better expertise is required for dyeing, so for the same
shade the cost of a fabric with vat dyes is more than a fabric dyed in reactive dyes.
The choice of dye depends on the buyer, the fastness properties and also on the
shade selected.
Color:
Within the same dye class some colors are more expensive than the other. For eg,
turquoise and reds are more expensive.
Weight of the fabric:
Lighter the fabric quicker is the dye pick-up so dyeing time is saved. Capacity of
the machine is expressed in weight of the material for lighter weight fabrics, more
length of the material can be processed at one time, so dyeing cost is reduced.
All the above prices are for a minimum quantity of 1,500 - 2,000 mt and if the
quantity is less the price will go up. This principle applies for all yarn-dyed fabrics
also. Pastel shades are dyed in portion cold dyes and medium and dark shades are
dyed in hot reactive dyes.
2.2.8 Finishing cost
Table-1: Finishing cost
Process Cost
Flame retardant
finish
30tk/mt
Antistatic finish 10 tk/mt
Anti stain 20tk/mt
Anti wrinkle 10tk/mt
If softeners are added in the jigger after dyeing, then the cost is tk 20/lb whereas if
it is done on a separate machine and later stentering is done then the cost is
tk40/kg. The quality of fabric is better in second case as the cover is better and
there is no shrinkage later.
2.2.9 Shrinkage and wastage: It is important to note that wastage and shrinkage
are integral part of costing. Generally a minimum shrinkage of 5 - 7% is
Page no. 7
acceptable. Below is a Table showing shrinkage of different fabrics:
Table-2: Shrinkage and wastage
Below is a Table showing shrinkage of
different fabrics:
Fabric Shrinkage%
Poplin, Sheeting 3%
Cotton Voile, cambric 5%
Polyyester/Viscose
blend fiber-dyed
4.5-5%
Polyester viscose piece-
dyed
6%
100% grey polyester 20%
Cost of the fabric = Cost of grey fabric + dyeing charges + finishing charges +
shrinkage + wastage.
2.3 Various types of costing procedures.
Costing is the heart of any business therefore continuous research and
development work is being done on regular basis. Some important methods of
costing woven fabric s is discussed below;
2.3.1 Technical features:
Giovanni Cascelli, Salvatore Maietta & Eiufette Sigrisi has written a book on
weaving where they have contributed a chapter on costing which is discussed
below:
Warp yarn count: Ne 30/1
Weft yarn count: Ne 30/1
Weight per sq. m.: 130 g (50% warp / 50%weft)
Weaving wastes: 5%
Grey fabric width: 248 cm (selvedges excluded)
Warp and weft shrinkage: 10%
Processing yield: 88%
Number of machines: 50
Insertion speed: 350 strokes/minute
Working days per month (average): 23
Working months: 11
Shifts per day: 4 of 6 hours each
Yarn cost (Ne 30/1): $ 8.45/Kg
Page no. 8
Beside above mentioned technical data, the weaving mill knows some plant
management
Expenses, which are fixed expenses resulting from the projection of the expenses
of previous years
They calculate costing in lira; we converted it into USD (USA).
And from the forecasts for the works in progress or to be carried out nextly
Personnel expenses: $762719.40(20 production workers)
Machinery depreciation: $340499.73 (for 5 years)
Energy and heating expenses: $122579.90
Building maintenance: $34049.97
Plant adjustment: $81719.94
Other expenses: $231539.82
Let us calculate the cost per stroke which is necessary to depreciate the annual
expenses.
By cost per stroke we mean the multiplier in lire which permits to calculate the
cost per meter of our product. To facilitate the calculation, we consider it as
already multiplied by 100 in order to obtain values per meter.
2.3.2 First of all we calculate the density per centimeter of the fabric elements
on the basis of the weight
Per sq. m.:
130 g (weight/sq. m. of the fabric) / 2 (the elements are each 50%) = 65 g (weight
of warp and weft)
Ne = 0.59 x L / W, therefore L = Ne x W / 0.59 and, by replacing our values
L = 30 x 65 / 0.59 = 3,305 m (real warp or weft length in sq. m.)
3,305 10% (shrinkage) = 2,974.57 (visible length)
2,974.57 / 100 (centimeters in one meter) = 29.74 (density per centimeter)
Page no. 9
2.3.3 As both elements participate each with 50% to the fabric, the density we
calculated with this procedure applies also to the weft. We calculate then the
annual production in meters of the weaving mill:
350 (machine strokes/minute) x 88/100 (R%) = 308 (real speed)
308 x 60 (minutes in one hour) x 24 (total working hours of the shifts per day) x
50 (weaving machines) =
22,176,000 (strokes per day of the department)
22,176,000 / 30 (strokes per cm) x 100 (cm in one m) = 7,392 m (daily production
in meter)
7,392 x 23 (working days per month) x 11 (working months per year) = 1,870,176
(meters produced in one year).
2.3.4 Now we need to calculate the expenses which we have to bear in one
year. This datum results from the sum of the expenses:
1,120,000,000 + 500,000,000 + 180,000,000 + 50,000,000 + 120,000,000 +
340,000,000 =2,310,000,000 (total expense)
If we divide such expense by the meters produced, we obtain the expense
incidence on each meter:
2,310,000,000 / 1,870,176 = 1,235.17 (mark-up per meter to depreciate the
expenses)
To this figure we have to add the cost of raw materials:
130 g (weight per sq. m. of the fabric) x 2.48 (finished width in m) = 322.4
(weight per linear meter)
322.4 + 5% (weaving waste) = 339.36 (weight of the raw material)
2.3.5 Let us calculate the cost of cotton:
339.36 x 8,000 / 1,000 = 2,714.88 (cost per meter of the raw material)
The total cost to divide on each meter is:
1,235.17 + 2,714.88 = 3,950.05 3,950
Finally, the cost per stroke results from the ratio between the born expenses and
the density per
Centimeter of the article:
3,950 / 30 (strokes per centimeter) = 131.6 132 (cost per stroke)
Page no. 10
Obviously this value permits only to recover the expenses, and every mark-up
permits to get a Profit at the end of the year; if the mark-up is between 132 and
150, we obtain:
150 x 30 = 4,500 (price per meter of the fabric) 4,500 x 1,870,176 (meters
produced in one year) = 8,415,792,000 (annual proceeds) (339.36 / 1,000) x
1,870,176 x 8,000 = 5,077,303,419 (annual expense for raw materials)
5,077,303,419 + 2,310,000,000 = 7,308,303,419 (total expenses born in one year)
8,415,792,000 + 7,308,303,419 = 1,107,488,581 (profits in one year)
It may be mentioned that the above costing is done for Italy Of course this
calculation is only indicative of the various expenses which come into play in
Practice and does not consider at all some processes, as e.g. warping, nor the
various rebates or Special price which is granted to regular customers or against
big orders. Moreover the Calculation assumes the production of only one and the
same article on 50 weaving machines, although we know that in reality the
situation is quite different with many producers; the Calculation is anyway
indicative of the mechanisms which regulate the price determination for the
finished product.
It is the process of Italy that is calculating the costing system of woven fabric.
Page no. 11
2.4 Fabric cost and Project cost
The cost woven fabric is directly affected by the cost project which is again
depends on all fixed costs e.g. cots of land, cost of machinery, building etc The
cost of an woven fabric producing industry is given below. The project is located
in India and corresponding link is as follows;
Link: www.mytextilenote.blogspot.com
Capital Cost of the Project (Approximate) Taka in Lacs
Here capital of the project directly affected the cost of the woven fabric.
Table-3: Particulars of project cost
Capital Cost of the Project (Approximate) Taka in Lacs
Particulars Value Value
Cost of one
Rapier loom
20 12
Total cost of 24
looms
480 288
additional equipment
Material handling 7.0 7.0
Knotting unit 15.0 15.0
Stabilizer 2.0 2.0
Compressor 2.0 2.0
Humidification plant 18.0 18.0
Water softening plant 1.5 1.5
Fabric Inspection machine 2.5 2.5
Drawing in stands 1.0 1.0
False maximum 4.0 4.0
Internal electrical 12.0 12.0
TOTAL 545 .0 353.0
Page no. 12
Table-4: Operating Cost/Meter (Conversion cost/meter)
Particulars New Rapier loom
Taka/meter
Second hand Rapier
loom
Taka/meter
Power 3.61 5.68
Sizing cost 2.40 2.40
Interest@9.0% 2.50 2.45
Labour Cost 0.78 1.21
Staff & Administration 0.43 0.71
Spare parts 7
Maintenance
0.27 0.63
Water for
humidification
0.30 0.30
Depreciation 10%
annum
2.90 3.00
Total conversion
cost/meter
13.19 16.38
Cost/pick 190 cm loom 18 NP 23 NP
Cost/meter will go down with Government interest subsidy, and power
subsidy
Assumptions:
Quality considered: Yarn dyed shirting 150 cms Finished fabric
40 Ne warp 40 Ne weft 108 reed and 72 pick
Power Cost Tk.12/unit
Spare part
maintenance
Tk.30 loom shift new looms
Tk.30 loom shift old loom
Sizing cost Tk. 30/kg.
Water Tk. 40/KL
Page no. 13
2.5 Cost information adopted from a book written by M.A Razzaque
Cost of woven fabric is the main concern of a garment merchandiser.
M.A Razzaque has written a book on garment merchandising and reported a lot of
fabric and their costs. Some of the fabric prices are mentioned as follows;
Fabrics price list for Solid piece Dyed Fabrics:
Sl.
No.
Description Of
Fabrics
Construction Finished
Width
Weight( Gra
ms per
square
meter)
Price/Yd.
(in Usd)
Sheeting
1 100% cotton
sheeting (calico)
60×60/14×14 58”/59” 220 1.65
2 100% cotton
sheeting
60×60/16×16 58”/59” 185 1.60
3 100% cotton
sheeting
60×60/20×20 58”/59” 150 1.35
4 100% cotton
sheeting
68×68/30×30 58”/59” 115 1.25
Poplin
5 100% cotton Poplin 110×60/20×20 58”/59” 160 1.75
6 100% cotton Poplin 102×72/24×24 58”/59” 178 1.80
7 100% cotton heavy
Poplin
100×81/30×30 58”/59” 148 1.80
8 100% cotton heavy
Poplin
124×68/30×30 58”/59” 158 1.85
9 100% cotton
Poplin
128×72/40×40 58”/59” 123 1.70
10 100% cotton Poplin 146×72/40×40 58”/59” 133 1.85
11 100% cotton Poplin 133×72/40×40 58”/59” 128 1.75
12 100% cotton Poplin 110×70/40×40 58”/59” 110 1.60
13 100% cotton Poplin 133×100/40×40 58”/59” 150 1.95
14 100% cotton Poplin 128×100//40×40 58”/59” 145 1.90
15 100% cotton Poplin 74×72/40/2×30 58”/59” 150 1.90
16 100% cotton Poplin 148×81/50×50 58”/59” 118 2.25
17 100% cotton
Premium Poplin
110×76/60×50 58”/59” 80 2.00
18 100% cotton
Premium Poplin
108×91/80×80 58”/59” 60 2.25
19 100% cotton
Premium Poplin
128×98/80/2×80 58”/59” 108 2.50
Page no. 14
Sl.
No.
Description Of
Fabrics
Construction Finished
Width
Weight( Gr
ams per
square
meter)
Price/Yd.
(in Usd)
Canvas
20 100% cotton
canvas
10×10/74×44 58”/59” 315 2.35
21 100% cotton light
canvas
16×16/96×15 58”/59” 235 1.95
22 100% cotton light
canvas
20×20/100×50 58”/59” 185 1.65
23 100% cotton
canvas
20×16/100×50 58”/59” 195 1.70
24 100% cotton
canvas
20/2×10/72×42 58”/59” 312 2.50
25 100% cotton
canvas
30/2×30/2/11652 58”/59” 286 2.40
26 100% cotton
canvas
30/2×16/100×48 58”/59” 260 2.25
27 100% cotton
canvas
40/2×40/2/112×50 58”/59” 198 2.25
28 100% cotton
canvas
40/2×20/110×54 58”/59” 192 1.85
29 100% cotton
canvas
100/2×100/2/144×81 58”/59” 118 2.95
Twill
30 100% cotton heavy
twill
7×7/72×44 58”/59” 410 2.50
31 100% cotton twill 10×7/74×46 58”/59” 350 2.45
32 100% cotton twill 10×10/74×4 58”/59” 310 2.35
33 100% cotton twill 16×12/108×56 58”/59” 390 2.15
34 100% cotton twill 16×7/120×50 58”/59” 385 2.60
35 100% cotton twill 20×20/108×58 58”/59” 210 1.70
36 100% cotton zigzag
twill(Herringbone)
20×20/108×60 58”/59” 210 1.80
37 100% cotton twill 20×16/140×64 58”/59” 245 1.90
38 100% cotton 3/1
twill
20×16/140×64 58”/59” 270 2.00
39 100% cotton twill 20×16/128×60 58”/59” 260 1.95
40 100% cotton 3/1
twill
24×24/98×64 58”/59” 165 1.70
41 100% cotton 2/1
twill
24×24/100×64 58”/59” 167 1.75
42 100% cotton twill 30×30/126×72 58”/59” 160 1.75
43 100% cotton twill 30×30/144×72 58”/59” 176 1.95
44 100% cotton 2/1
twill
30×30/130×70 58”/59” 165 1.80
45 100% cotton 2/1
twill
30×30/140×80 58”/59” 190 1.90
46 100% cotton 2/1
twill
30×20/195×69 58”/59” 185 2.00
47 100% cotton 4/1
satin twill
40×40/128×91 58”/59” 134 2.15
48 100% cotton heavy
twill
40/2×20/2/124×60 58”/59” 300 2.75
Page no. 15
CHAPTER-3
EXPERIMENTAL PROCEDURE
Page no. 16
Page no. 17
We visited some local woven textile industry & collect them of costing woven
fabric. We try to collect more information but for as per company policy most
of the time they don’t co-operate with us. Here we try to give concept local
woven fabric costing process. This may vary industry to industry.
3.1 Total cost of grey fabric depends on:-
Gas cost
Labor cost
Maintenance cost
Building rent cost
Sizing cost
Transport cost
Electricity cost
Voluntary cost
Total Air jet Machine=30
Number of loom =30
Per Shift production =150 meter
Per day Production =300 meter
Monthly Cost Analysis
Depreciation = 1400000 tk
Financial Charge =1625000 tk
Admin =75000 tk
Miscellaneous =50000 tk
Total=3600000 tk
Cost Analysis
Daily Cost =60000 tk
Per loom cost=2000 tk
Cost of yarn & other materials/meter=30 tk
Price per meter=35 tk
Page no. 18
Profit Analysis
Contribution =5 tk
Daily Contribution =5×30=150 tk
Profit per day per loom =150×30=300 tk
Profit per day =300×30=9000 tk
Profit per month =9000×30=270000 tk
Expire parts sales/month =5000 tk
Total =2750000 tk
Total Cost analysis
Building Rent Cost =20000 tk
Officers+ Workers Cost =100000 tk
Sizing Cost =10000 tk
Maintenance Cost =10000 tk
Electricity Cost =50000 tk
Gas Cost =20000 tk
Transport Cost =10000 tk
Voluntary Cost =5000 tk
Total =225000 tk
Total Profit in Local Textile mill per month= (275000-225000) tk
=50000 tk
Gray Fabric Cost Per meter
Total profit=275000 tk
Total gray fabric length=9000 meter
Total cost per meter=(275000/9000) tk/meter
=30.55 tk/meter
Page no. 19
3.2 Study of cost calculation based on local market price. Here we adopted
local yarn price and local fabric making charge.
Sample No.1
100% cotton sheeting (calico) 60×60/14×14
Let us consider,
Warp crimp= 5 %
Weft crimp=5 %
Fabric wastage=3 %
We consider Woven Cotton Carded Yarn: Yarn Price Status May,2010 in $
Weight of warp
Weight of warp= 107.40 gm.= 0.2367 lb
Price of warp yarn= 0.2367 *3.25 $
= 0.769 $
Weight of weft
Weight of weft= 107.40 gm.= 0.2367 lb
Price of weft yarn= 0.2367 *3.25 $
= 0.769 $
Fabric weight= (107.40 + 107.40) gm.
= 214.81 gm
Fabric price per meter= (Price of warp yarn + Price of weft yarn)
= (0.769 $ + 0.769 $ )
= 1.53 $
16K 100% Cotton 3.20-3.25
20K 100% Cotton 3.25-3.30
30K 100% Cotton 3.55-3.55
Page no. 20
We collect recent yarn market price for 14 Ne 3.25
Making charge 0.45 $
Then finally 60×60/14×14 fabric price is 1.98 $.
Sample No 2
Weight of warp
Weight of warp= 93.98 gm. = 0.207 lb
Price of warp yarn= 0.207 *3.25 $
= 0.673 $
Weight of weft
Weight of weft= 93.98 gm. = 0.207 lb
Price of weft yarn= 0.207 *3.25 $
= 0.673 $
Fabric weight= (93.98 + 93.98) gm.
= 187.96 gm
Fabric price per meter= (Price of warp yarn + Price of weft yarn)
= (0.673 $ + 0.673 $)
= 1.34 $
We collect recent yarn market price for 16 Ne is3.25 $
Making charge 0.45 $
Then finally 60×60/16×16 fabric price is 1.796 $.
100% cotton sheeting 60×60/16×16
Page no. 21
Sample No3
Weight of warp
Weight of warp= 75.18 gm. = 0.165 lb
Price of warp yarn= 0.165 *3.30 $
= 0.546 $
Weight of weft
Weight of weft= 75.18 gm. = 0.165 lb
Price of weft yarn= 0.165 *3.30 $
= 0.546 $
Fabric weight= (75.18+ 75.18) gm.
= 150.36 gm
Fabric price per meter= (Price of warp yarn + Price of weft yarn)
= (0.546 $ + 0.546 $)
= 1.092 $
We collect recent yarn market price for 20 Ne is3.30 $
Making charge 0.45 $
Then finally 60×60/20×20 fabric price is 1.542 $.
Sample No 4
Weight of warp
Weight of warp= 56.806 gm. = 0.125 lb
Price of warp yarn= 0.125 *3.55 $
= 0.444$
100% cotton sheeting 60×60/20×20
100% cotton sheeting 68×68/30×30
Page no. 22
Weight of weft
Weight of weft= 56.806 gm. = 0.125 lb
Price of weft yarn= 0.125 *3.55 $
= 0.444$
Fabric weight= (56.806+ 56.806) gm.
= 113.612 gm
Fabric price per meter= (Price of warp yarn + Price of weft yarn)
= (0.444 $ + 0.444 $)
= 0.888 $
We collect recent yarn market price for 30 Ne is3.55 $
Making charge 0.45 $
Then finally 68×68/30×30 fabric price is 1.338 $.
Page no. 23
3.3 Development of fabric cost from Priyank Goyal (www.textile
notes.blogspot.com) conception and consumption ratio for outside mills.
During our literature survey we came across with a web site on textile engineering.
In fact this was maintained by the Priyank Goyal who is an expert on textile and
apparel and working as consultant on costing as well as an academic who deliver
lectures in NIFT at New Delhi . Currently he is working as Senior Buyer (Garment
Fabric and Accessories) in a retail organization in India. He has developed an
excel sheet on costing which is described below. Using the sheet we have
calculated the cost of woven fabric. Priyank Goyal Excel File, We use the local
raw materials price then input it on this Excel File then finally we get different
types of gray fabric price.
.
Construction=20×20/60×56
Grey width=64”
Warp 20 Ne
Weft 20 Ne
Warp
Price 500
Ends 60
Weft
Price 500
Picks 56
Width 64 inch Per Yard
Per
Meter
Width 1.7777778 yds
Warp
Cost
=(Warp price
×warp wt of
1 yd of
fabrics)/10
13.04 14.27
Weave 1/1
Weft
Cost
=Weft price
×weft wt of 1
yd of
fabrics)/10
=11.92 13.03
Warp
Contraction 10.0% 24.96 27.30
Weft
Contraction 5.0%
Page no. 24
Warp
Wastage 3.0%
Weft
Westage 5.6%
B-grade 1.0%
Total warps = Ends× width =3,840
Warp Count 20
Length of 1
lb of warp
= warp count× 840
=16,800
Weight of 1
yard of warp
(1/Length of 1 lb of
warp)
= (1/16800) = 0.00 Lbs
Weight of 1
yard of all
warps
= ( Total warp/ weight
of 1 yard warp)
=(3840/16800)
=0.23 Lbs
Warp wt of 1
yard of
fabric
=(Weight of 1 yard of
all warps(1+ Warp
Contraction+ Warp
Wastage)×(1- B grade)
= 0.23×(1+
0.10+0.03)×(1- 0.01)
=0.26 Lbs
Weft Count 20
Length of 1
lb of weft
= (Weft count×840)
=(20×840)
16,800
Weight of 1
yard of weft
=(1/Length of 1 lb of
weft)
= (1/16800)
=0.00 Lbs
Wt of 1 pick
adjusted for
waste & B-
grade
=(Weight of 1 yard of
weft×(1+ Weft
Contraction+ Weft
Lbs
Page no. 25
Wastage)×(1- B
grade)×width
0.00
Weight of
picks in one
linear inch of
fabric
=Wt of 1 pick adjusted
for waste & B-grade×
picks
=0.01 Lbs
Weft wt of 1
yard of
fabric 0.24
lbs
To using this Excel file we get the flowing of data different types of fabrics
costing:-
Fabric Types Construction Price/yds
Tk
Plain 20×20/60×56 38.438
100%cotton Sheeting(calico) 60×60/14×14 38.438
100% cotton sheeting 60×60/16×16 45.02
100% cotton sheeting 20×20/60×60 36.65
100% cotton Poplin 110×60/20×20 52.08
100% cotton Poplin 102×72/24×24 44.36
100% cotton heavy Poplin 124×78/30×30 41.22
100% cotton Poplin 128×72/40×40 30.63
100% cotton Poplin 146×72/40×40 33.40
100% cotton Poplin 148×51/50×50 34.43
100 % cotton Oxford (2/2 matt) 40×30/98×76 20.44
100 % cotton cellular poplin 40×40/128×81 29.42
Page no. 26
3.4 Development of fabric cost by Enid Williams
(http://www.haleystudio.com/yarn_calc.html) conception and consumption ratio
for outside mills.
Enid Williams is a Web developer & textile artist. He was developed a yarn
calculator which can help to determine how much yarn is required for a weaving
project. We are using this yarn calculator software for required weaving
calculation.
Weft:
Finished piece: woven width desired: 58 inches (without fringe)
Shrinkage due to fiber content: 10 %
Draw-in in weave (esp. if weft-faced): 10 %
Picks Per Inch: 64
Weft Yarn: 40
1.8
yards/lb
$/lb
Results:
Width at the reed: 71.605 Inches
Page no. 27
Warp:
Finished piece: woven length desired: 4500000 inches ( without
fringe)
Shrinkage due to fiber content: 10 %
Test sample allowance: 0 Inch
Take-up in weave (esp. if warp-faced): 0 %
Fringes: 3 Inch
Loom waste (20-30): 25 Inch
Ends Per Inch (Sett): 133
Width at the reed: 71.605 Inch
Warp Yarn: 40
1.8
yards/lb
$/lb
Results:
Length of one warp: 5000031 Inch
Number of warp threads (ends): 9523
Total yarn length needed (warp): 1322647089.25
yards
1209428498.4
1 meters
Pounds of yarn needed (warp): 33066177.23 14998817.99
kg
Yarn cost, warp: $ 59519119.01
Number of weft threads (picks): 288000000
Total yarn length needed (weft): 572840000 Yards 523804896
meters
Pounds of yarn needed (weft): 14321000 6496005.6 kg
Yarn cost, weft: $ 25777800
Total yarn cost: $ 85296919.01
Page no. 28
3.5 Cost calculated using strategy adopted local fabric manufacturing
company.
GSM of
Fabric Price in tk
Fabric
construction Fabric name
214.815
4 132.66 60×60/14×14
100% cotton sheeting
(calico)
187.963
5 120.33 60×60/16×16 100% cotton sheeting
150.370
8 103.31 60×60/20×20 100% cotton sheeting
113.613
5 89.64 68×68/30×30 100% cotton sheeting
GSM VS PRICE
0
20
40
60
80
100
120
140
0 50 100 150 200 250
GSM
Priceintk
Fig-1: Effect on GSM in Fabric price
GSM of
Fabric Price in tk
Fabric
construction Fabric name
213.01 133.84 110×60/20×20 100% cotton Poplin
160.38 114.11
124×68/30×30 100% cotton heavy
Poplin
151.19 109.35
100×81/30×30 100% cotton heavy
Poplin
137.83 100.188 102×72/24×24 100% cotton Poplin
Page no. 29
GSM VS PRICE
0
20
40
60
80
100
120
140
160
0 50 100 150 200 250
GSM
Priceintk
Fig-2: Effect on GSM in Fabric price
3.6 Cost information adopted from a book written by M.A Razzaque
Cost of woven fabric is the main concern of a garment merchandiser.
M.A Razzaque has written a book on garment merchandising and reported a lot of
fabric and their costs. Some of the fabric prices are mentioned as follows;
GSM of
Fabric
Price
in tk
Fabric
construction Fabric name
214.815
4 110.55 60×60/14×14
100% cotton sheeting
(calico)
187.963
5 107.2 60×60/16×16 100% cotton sheeting
150.370
8 90.45 60×60/20×20 100% cotton sheeting
113.613
5 83.75 68×68/30×30 100% cotton sheeting
Page no. 30
GSMVSPRICE
0
20
40
60
80
100
120
0 50 100 150 200 250
GSM
PRICEINTK.
Fig-3: Effect on GSM in Fabric price
GSM of
Fabric Price in tk
Fabric
construction Fabric name
213.01 117.25 110×60/20×20 100% cotton Poplin
160.38 123.95
124×68/30×30 100% cotton heavy
Poplin
151.19 120.6
100×81/30×30 100% cotton heavy
Poplin
137.83 120.6 102×72/24×24 100% cotton Poplin
GSM VS PRICE
116
117
118
119
120
121
122
123
124
125
0 50 100 150 200 250
GSM
Priceintk
Fig-4: Effect on GSM in Fabric price
4.7 Development of fabric cost from Priyank Goyal ( www.textile
notes.blogspot.com) conception and consumption ratio for outside mills.
GSM of Price in Fabric Fabric name
Page no. 31
Fabric tk construction
214.815397
1 42.4 60×60/14×14
100% cotton sheeting
(calico)
187.963472
5 42.24 60×60/16×16 100% cotton sheeting
150.370778 49.24 60×60/20×20 100% cotton sheeting
113.613476
7 29.76 68×68/30×30 100% cotton sheeting
GSM VS PRICE
0
10
20
30
40
50
60
0 50 100 150 200 250
GSM
Priceintk
Fig-5: Effect on GSM in Fabric price
GSM of
Fabric
Price in
tk
Fabric
construction Fabric name
213.01 56 110×60/20×20 100% cotton Poplin
160.38 42.15
124×68/30×30 100% cotton heavy
Poplin
151.19 39.65
100×81/30×30 100% cotton heavy
Poplin
137.83 47.69 102×72/24×24 100% cotton Poplin
Page no. 32
GSM VS PRICE
0
10
20
30
40
50
60
0 50 100 150 200 250
GSM
Priceintk
Fig-6: Effect on GSM in Fabric price
CHAPTER-4
DISCUSSION
Page no. 33
4.1 Discussion:
Costing of woven fabric is very complex and not easy as it depends on mainly
variables e.g. geographical condition the country concerned labor cost which very
widely from country to country. Cost of power which is also varies from country
to country, types of loom which widely varies costing of woven fabrics. Within
the loom is not brand new is also a factor. Attempt has been made to collect
information for local factories but response was not very good as costing is always
a trade secretes which no body wants to disclose.
Having this is said we have collected information from web sites, then when we
from excel sheet or formulas to developed by experts calculates fabric cost. We
have determined the cost of fabric using those tools. It was however observed that
they are big difference among then. One important finding was that shown below
by figure:-
GSM VS PRICE
0
20
40
60
80
100
120
140
0 50 100 150 200 250
GSM
Priceintk
Fig:- Effect on GSM in Fabric price(Local Fabric Manufacturing company)
As the GSM increase fabric price also be increase but the rate of increase of price
relatively low which may be due to the facts that as GSM increase most of cost
factors remain constant except raw material.
Another findings was that the cost of fabric very widely from quality to quality.
This is again related weaving factors. Two fabrics may have same GSM but
different PPI and weft cover factor. The fabric which PPI is higher and weft cover
factor more will generate much be a great problem in weaving loom due to a great
price.
Page no. 34
CHAPTER-5
CONCLUSION
Page no. 35
5. Conclusion:
The work reported here describe method of calculation cost of woven fabric very
widely depends on the factors like concern country’s labor cost, power, tax & vats
imposed by the country.
Page no. 36
CHAPTER-6
REFERENCES
Page no. 37
6.1 REFERENCES
1. Development of fabric cost by Enid Williams
(www.haleystudio.com/yarn_calc.html)
2. Garment & Textile Merchandising
M.A Razzaque
3. Priyank Goyal
(www.textile notes.blogspot.com)
Page no. 38

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Costing of woven fabrics

  • 2. 1.1 Introduction: Bangladesh is heavily involved with production of woven garments. Unfortunately we have import nearly 70% of fabrics that we export as garment. We can only produce only 30% woven fabrics locally. Due to import of woven fabrics huge amount of our foreign currency goes to the fabric producing countries. If we increase production of woven fabric then the earning RMG sector may increase several times. There are many problems lies with our poorly oriented woven sector. One of the important reason problems may be our costing. Costing is the most important aspect of any business organization. Both over costing and under costing have equal and harmful impact on the organization profit & loss and ultimate survival. An attempt has been made in this project work to study the costing procedure adopted by Bangladeshi mills. Since costing is highly secret matter therefore it was not possible to get adequate response from the industry. However we have tried our best to gather information which are reported in this project thesis. Page no. 2
  • 4. Cost of woven fabric is the main concern of a garment merchandiser. Reported Primary issue that affect costing of woven fabrics 2. 1 Primary issue that affect costing of woven fabrics Costing is a very complex procedure, with set patterns and guidelines followed by the industry, and it is difficult to find out costs for every process as there are some inbuilt costs while costing. Woven fabrics are used worldwide for many applications like apparel, home furnishing, and accessories, industrial and medical textiles. It is estimated that the global production of woven fabrics will grow 35 million tones by 2010 and most of this growth will be in Asia. It is also estimated that Asia will emerge as the biggest market for sourcing of fabrics for the garment and apparel industry. Costing of woven fabrics for garment manufacturers is one of the most important aspects of garment production. About 65 - 70% cost of the garment is the cost of the fabric and hence, it is very crucial to get the right cost of the fabric from fabric manufacturers and suppliers. A large variety of fabrics are used in the export/domestic market for different end- uses. Buyers send specifications and the fabric has to be developed as per the design trend. Garment manufacturers source fabrics with specific construction and characteristics in different quantities for different end-uses. Garment manufacturers struggle to get the best possible cost of the fabric. It would be interesting to know the important points to consider for getting a comprehensive understanding of costing. Costing seems to be a complex exercise as it depends on a number of variables. Costs are calculated taking into consideration the complete production process and machinery involved. However, in this article, the authors consider only the commercial costing keeping in mind the manufacturing cost and wet processing cost. 2.1.1 Factors needs to be considered before costing: i) Direct cost: Cost of raw material 66%. Cost of size and chemicals 4%. Production cost comprising of running the machine, maintenance, power fuel, humidification and other utilities 8 % and worker wages and salaries 8% losses incurred due to shrinkage, wastage, grading, and also selling commissions. ii) Indirect cost: Interest on investment, loan, working capital, depreciation, etc. Above 7%, overheads and administrative expenses like traveling, telephone, couriers, legal issues, taxes comprising of 7%. Profit: 10 - 20% depending on the order size. In some companies, 70% of the fabric cost will comprise of direct cost, but in corporate selling only 40% cost of the fabric is direct cost and 60% is overheads. Page no. 4
  • 5. 2.2 Factors which affect the cost of woven fabrics. Factors which are considered in calculating cost of woven fabrics. 2.2.1 Type of raw material Raw material cost includes cost of fiber or yarn. The cost of the fiber will depend largely on its generic type - cotton, linen, wool, silk, rayon, nylon, polyester, polyester cotton blend etc, and also its quality. The Yarn cost will depend on the count of the yarn, finer the yarn, more expensive it will be. Carded or combed: Combed yarns are more expensive than carded yarns as yarn realization is only about 70% incase of combed yarns because short fibers are removed where as in case of carded, the yarn realization is about 88%. Combed yarns have more luster and strength than carded yarns. All finer counts above 40s are generally combed yarns. Method of spinning-open-end or ring spun. Open end yarns are cheaper as the cost of manufacturing is less. It is used for coarser yarn count below 20s. The cost of man-made spun yarns will depend on the fineness -finer the yarn, more expensive it is. Number of fine filaments used in making the yarn will also affect the cost. Bright or dull Bright yarns are more expensive than dull. Textured yarns are more expensive than flat because of the additional process cost. 2.2.2 Amount of raw material or GSM of the fabric Amount of raw material is reflected by the weight or GSM (grams/sq mt) of the fabric. GSM is directly dependent on the EPI and PPI or construction of the fabric and is inversely proportional to the count of the yarn. Relation between GSM and cost is a little complex. For the same variety of the fabric, as the GSM increases the cost increases. But when the yarn becomes very fine and there is a variation in picks per inch in the fabric, then the cost of spinning and weaving plays a more important role than the GSM and even when the GSM is similar, the cost of voile fabric with finer yarns and more picks per inch is more. Weight of the fabric is the weight of warp and weft which can be calculated by the formula below: Weight of warp in grams/sq mt of fabric =(EPI x 0.6 )/ (Count of Warp = A) Weight of weft in grams/sq mt of fabric = PPI x 0.6 /( Count of Weft = B) GSM = A+B 2.2.3 Sizing and Chemicals Cost The sizing cost depends upon the count of the yarns. The count becomes finer the size and chemical cost increases as a rich solution, better quality of size and chemicals is required for better strength. One needs to add $ 2/lb as additional cost which includes steam, power or wages. For two plied yarn no sizing is required. 2.2.4 Production cost or cost of weaving process It includes machine running cost, maintenance, labour cost, power & fuel, etc. The Page no. 5
  • 6. weaving cost is affected by the beam size, if the beam is small in length, the cost will be more as beam gaiting and knotting will add to the cost. 2.2.5 Mill-made or power loom made: The quality of mill-made fabrics is better than power loom made fabrics in terms of yarn quality; Therefore the cost of fabric is higher. At times it can be as high as 25%.. eg, the cost of 40s Poplin 92 x 88 can vary between $0.65/mt and $ 1/mt. It depends on the type of loom whether power loom, rapier, air-jet, dobby or jacquard and the weave and construction. The weaving cost is expressed as paisa /pick/inch/sq mt. The cost of weaving is different for different weaves. The cost of weaving for rapier loom for plain weave 40" width fabrics = 0.25 tk/pick/inch/sq mt which means that for a 120 inch width fabric the cost will be 24 paisa/pick/mt. For twill weave, the cost =0.4 tk/pick/inch/sq mt. For satin weave, the cost = 0.4 tk/pick/inch/sq mt. In case of P/V suiting, the cost ranges from 0.45 paisa/pick to 0.6tk/pick. For 1,000 m beam with dobby, the weaving cost is 0.51tk/pick and for 1,000 m beam with jacquard is 0.6tk/pick. For dobby, the cost = 0.3tk/pick/inch/sq mt. For 2400 hook jacquard the cost = 1tk/pick/inch/sq mt. For double beam fabrics like seer sucker, the cost is = 0.6tk/pick/inch/sq mt. There is no standardization in dobby and jacquard fabrics. For yarn dyed stripes and checks in loom the efficiency is affected by the number of colors in the weft but mill-made stripes and checks are made on Sulzer loom in which the production is not affected by the number of colors in the warp or weft. 2.2.6 Wastage and shrinkage Wastage of 2 - 3% in warping and weaving and shrinkage of 1 - 1.5% from loom to grey folding stage is included in the weaving cost. About 92% of the fabric produced is sold as fresh. The value loss is about 7% while running cotton material but is only 3% in using polyester yarn. 2.2.7 Dyeing costs :- 2.2.7.1 Cost of dyeing depends upon: Length: A minimum of 2,000 mt of fabric is accepted, if the quantity of the fabric is more say 15,000 mt or 20,000 mt, then the processing charges will be lowered by 3- 4tk/mt. Width of the fabric: If the width of the fabric is doubled, the cost of the processing is not doubled. So it is beneficial to go for wider width fabrics rather than fabrics with more length. This is because the overheads and cost of running the material are dependent on the length and not the width. Eg, the cost of dyeing 40" width poplin is 25tk, but the cost of dyeing 120" width fabric is 50tk. Shade%: Lighter the shade lower the cost. The amount of dye required is less as well as Page no. 6
  • 7. time required for dyeing is less. Eg, for dyeing pastel shades if it takes 24 hours, it takes 36 hours for dyeing black shades and burgundy colour. Class of dye and quality: Some dyes are more expensive than the other. Eg, Vat dyes are more expensive than reactive dyes and better expertise is required for dyeing, so for the same shade the cost of a fabric with vat dyes is more than a fabric dyed in reactive dyes. The choice of dye depends on the buyer, the fastness properties and also on the shade selected. Color: Within the same dye class some colors are more expensive than the other. For eg, turquoise and reds are more expensive. Weight of the fabric: Lighter the fabric quicker is the dye pick-up so dyeing time is saved. Capacity of the machine is expressed in weight of the material for lighter weight fabrics, more length of the material can be processed at one time, so dyeing cost is reduced. All the above prices are for a minimum quantity of 1,500 - 2,000 mt and if the quantity is less the price will go up. This principle applies for all yarn-dyed fabrics also. Pastel shades are dyed in portion cold dyes and medium and dark shades are dyed in hot reactive dyes. 2.2.8 Finishing cost Table-1: Finishing cost Process Cost Flame retardant finish 30tk/mt Antistatic finish 10 tk/mt Anti stain 20tk/mt Anti wrinkle 10tk/mt If softeners are added in the jigger after dyeing, then the cost is tk 20/lb whereas if it is done on a separate machine and later stentering is done then the cost is tk40/kg. The quality of fabric is better in second case as the cover is better and there is no shrinkage later. 2.2.9 Shrinkage and wastage: It is important to note that wastage and shrinkage are integral part of costing. Generally a minimum shrinkage of 5 - 7% is Page no. 7
  • 8. acceptable. Below is a Table showing shrinkage of different fabrics: Table-2: Shrinkage and wastage Below is a Table showing shrinkage of different fabrics: Fabric Shrinkage% Poplin, Sheeting 3% Cotton Voile, cambric 5% Polyyester/Viscose blend fiber-dyed 4.5-5% Polyester viscose piece- dyed 6% 100% grey polyester 20% Cost of the fabric = Cost of grey fabric + dyeing charges + finishing charges + shrinkage + wastage. 2.3 Various types of costing procedures. Costing is the heart of any business therefore continuous research and development work is being done on regular basis. Some important methods of costing woven fabric s is discussed below; 2.3.1 Technical features: Giovanni Cascelli, Salvatore Maietta & Eiufette Sigrisi has written a book on weaving where they have contributed a chapter on costing which is discussed below: Warp yarn count: Ne 30/1 Weft yarn count: Ne 30/1 Weight per sq. m.: 130 g (50% warp / 50%weft) Weaving wastes: 5% Grey fabric width: 248 cm (selvedges excluded) Warp and weft shrinkage: 10% Processing yield: 88% Number of machines: 50 Insertion speed: 350 strokes/minute Working days per month (average): 23 Working months: 11 Shifts per day: 4 of 6 hours each Yarn cost (Ne 30/1): $ 8.45/Kg Page no. 8
  • 9. Beside above mentioned technical data, the weaving mill knows some plant management Expenses, which are fixed expenses resulting from the projection of the expenses of previous years They calculate costing in lira; we converted it into USD (USA). And from the forecasts for the works in progress or to be carried out nextly Personnel expenses: $762719.40(20 production workers) Machinery depreciation: $340499.73 (for 5 years) Energy and heating expenses: $122579.90 Building maintenance: $34049.97 Plant adjustment: $81719.94 Other expenses: $231539.82 Let us calculate the cost per stroke which is necessary to depreciate the annual expenses. By cost per stroke we mean the multiplier in lire which permits to calculate the cost per meter of our product. To facilitate the calculation, we consider it as already multiplied by 100 in order to obtain values per meter. 2.3.2 First of all we calculate the density per centimeter of the fabric elements on the basis of the weight Per sq. m.: 130 g (weight/sq. m. of the fabric) / 2 (the elements are each 50%) = 65 g (weight of warp and weft) Ne = 0.59 x L / W, therefore L = Ne x W / 0.59 and, by replacing our values L = 30 x 65 / 0.59 = 3,305 m (real warp or weft length in sq. m.) 3,305 10% (shrinkage) = 2,974.57 (visible length) 2,974.57 / 100 (centimeters in one meter) = 29.74 (density per centimeter) Page no. 9
  • 10. 2.3.3 As both elements participate each with 50% to the fabric, the density we calculated with this procedure applies also to the weft. We calculate then the annual production in meters of the weaving mill: 350 (machine strokes/minute) x 88/100 (R%) = 308 (real speed) 308 x 60 (minutes in one hour) x 24 (total working hours of the shifts per day) x 50 (weaving machines) = 22,176,000 (strokes per day of the department) 22,176,000 / 30 (strokes per cm) x 100 (cm in one m) = 7,392 m (daily production in meter) 7,392 x 23 (working days per month) x 11 (working months per year) = 1,870,176 (meters produced in one year). 2.3.4 Now we need to calculate the expenses which we have to bear in one year. This datum results from the sum of the expenses: 1,120,000,000 + 500,000,000 + 180,000,000 + 50,000,000 + 120,000,000 + 340,000,000 =2,310,000,000 (total expense) If we divide such expense by the meters produced, we obtain the expense incidence on each meter: 2,310,000,000 / 1,870,176 = 1,235.17 (mark-up per meter to depreciate the expenses) To this figure we have to add the cost of raw materials: 130 g (weight per sq. m. of the fabric) x 2.48 (finished width in m) = 322.4 (weight per linear meter) 322.4 + 5% (weaving waste) = 339.36 (weight of the raw material) 2.3.5 Let us calculate the cost of cotton: 339.36 x 8,000 / 1,000 = 2,714.88 (cost per meter of the raw material) The total cost to divide on each meter is: 1,235.17 + 2,714.88 = 3,950.05 3,950 Finally, the cost per stroke results from the ratio between the born expenses and the density per Centimeter of the article: 3,950 / 30 (strokes per centimeter) = 131.6 132 (cost per stroke) Page no. 10
  • 11. Obviously this value permits only to recover the expenses, and every mark-up permits to get a Profit at the end of the year; if the mark-up is between 132 and 150, we obtain: 150 x 30 = 4,500 (price per meter of the fabric) 4,500 x 1,870,176 (meters produced in one year) = 8,415,792,000 (annual proceeds) (339.36 / 1,000) x 1,870,176 x 8,000 = 5,077,303,419 (annual expense for raw materials) 5,077,303,419 + 2,310,000,000 = 7,308,303,419 (total expenses born in one year) 8,415,792,000 + 7,308,303,419 = 1,107,488,581 (profits in one year) It may be mentioned that the above costing is done for Italy Of course this calculation is only indicative of the various expenses which come into play in Practice and does not consider at all some processes, as e.g. warping, nor the various rebates or Special price which is granted to regular customers or against big orders. Moreover the Calculation assumes the production of only one and the same article on 50 weaving machines, although we know that in reality the situation is quite different with many producers; the Calculation is anyway indicative of the mechanisms which regulate the price determination for the finished product. It is the process of Italy that is calculating the costing system of woven fabric. Page no. 11
  • 12. 2.4 Fabric cost and Project cost The cost woven fabric is directly affected by the cost project which is again depends on all fixed costs e.g. cots of land, cost of machinery, building etc The cost of an woven fabric producing industry is given below. The project is located in India and corresponding link is as follows; Link: www.mytextilenote.blogspot.com Capital Cost of the Project (Approximate) Taka in Lacs Here capital of the project directly affected the cost of the woven fabric. Table-3: Particulars of project cost Capital Cost of the Project (Approximate) Taka in Lacs Particulars Value Value Cost of one Rapier loom 20 12 Total cost of 24 looms 480 288 additional equipment Material handling 7.0 7.0 Knotting unit 15.0 15.0 Stabilizer 2.0 2.0 Compressor 2.0 2.0 Humidification plant 18.0 18.0 Water softening plant 1.5 1.5 Fabric Inspection machine 2.5 2.5 Drawing in stands 1.0 1.0 False maximum 4.0 4.0 Internal electrical 12.0 12.0 TOTAL 545 .0 353.0 Page no. 12
  • 13. Table-4: Operating Cost/Meter (Conversion cost/meter) Particulars New Rapier loom Taka/meter Second hand Rapier loom Taka/meter Power 3.61 5.68 Sizing cost 2.40 2.40 Interest@9.0% 2.50 2.45 Labour Cost 0.78 1.21 Staff & Administration 0.43 0.71 Spare parts 7 Maintenance 0.27 0.63 Water for humidification 0.30 0.30 Depreciation 10% annum 2.90 3.00 Total conversion cost/meter 13.19 16.38 Cost/pick 190 cm loom 18 NP 23 NP Cost/meter will go down with Government interest subsidy, and power subsidy Assumptions: Quality considered: Yarn dyed shirting 150 cms Finished fabric 40 Ne warp 40 Ne weft 108 reed and 72 pick Power Cost Tk.12/unit Spare part maintenance Tk.30 loom shift new looms Tk.30 loom shift old loom Sizing cost Tk. 30/kg. Water Tk. 40/KL Page no. 13
  • 14. 2.5 Cost information adopted from a book written by M.A Razzaque Cost of woven fabric is the main concern of a garment merchandiser. M.A Razzaque has written a book on garment merchandising and reported a lot of fabric and their costs. Some of the fabric prices are mentioned as follows; Fabrics price list for Solid piece Dyed Fabrics: Sl. No. Description Of Fabrics Construction Finished Width Weight( Gra ms per square meter) Price/Yd. (in Usd) Sheeting 1 100% cotton sheeting (calico) 60×60/14×14 58”/59” 220 1.65 2 100% cotton sheeting 60×60/16×16 58”/59” 185 1.60 3 100% cotton sheeting 60×60/20×20 58”/59” 150 1.35 4 100% cotton sheeting 68×68/30×30 58”/59” 115 1.25 Poplin 5 100% cotton Poplin 110×60/20×20 58”/59” 160 1.75 6 100% cotton Poplin 102×72/24×24 58”/59” 178 1.80 7 100% cotton heavy Poplin 100×81/30×30 58”/59” 148 1.80 8 100% cotton heavy Poplin 124×68/30×30 58”/59” 158 1.85 9 100% cotton Poplin 128×72/40×40 58”/59” 123 1.70 10 100% cotton Poplin 146×72/40×40 58”/59” 133 1.85 11 100% cotton Poplin 133×72/40×40 58”/59” 128 1.75 12 100% cotton Poplin 110×70/40×40 58”/59” 110 1.60 13 100% cotton Poplin 133×100/40×40 58”/59” 150 1.95 14 100% cotton Poplin 128×100//40×40 58”/59” 145 1.90 15 100% cotton Poplin 74×72/40/2×30 58”/59” 150 1.90 16 100% cotton Poplin 148×81/50×50 58”/59” 118 2.25 17 100% cotton Premium Poplin 110×76/60×50 58”/59” 80 2.00 18 100% cotton Premium Poplin 108×91/80×80 58”/59” 60 2.25 19 100% cotton Premium Poplin 128×98/80/2×80 58”/59” 108 2.50 Page no. 14
  • 15. Sl. No. Description Of Fabrics Construction Finished Width Weight( Gr ams per square meter) Price/Yd. (in Usd) Canvas 20 100% cotton canvas 10×10/74×44 58”/59” 315 2.35 21 100% cotton light canvas 16×16/96×15 58”/59” 235 1.95 22 100% cotton light canvas 20×20/100×50 58”/59” 185 1.65 23 100% cotton canvas 20×16/100×50 58”/59” 195 1.70 24 100% cotton canvas 20/2×10/72×42 58”/59” 312 2.50 25 100% cotton canvas 30/2×30/2/11652 58”/59” 286 2.40 26 100% cotton canvas 30/2×16/100×48 58”/59” 260 2.25 27 100% cotton canvas 40/2×40/2/112×50 58”/59” 198 2.25 28 100% cotton canvas 40/2×20/110×54 58”/59” 192 1.85 29 100% cotton canvas 100/2×100/2/144×81 58”/59” 118 2.95 Twill 30 100% cotton heavy twill 7×7/72×44 58”/59” 410 2.50 31 100% cotton twill 10×7/74×46 58”/59” 350 2.45 32 100% cotton twill 10×10/74×4 58”/59” 310 2.35 33 100% cotton twill 16×12/108×56 58”/59” 390 2.15 34 100% cotton twill 16×7/120×50 58”/59” 385 2.60 35 100% cotton twill 20×20/108×58 58”/59” 210 1.70 36 100% cotton zigzag twill(Herringbone) 20×20/108×60 58”/59” 210 1.80 37 100% cotton twill 20×16/140×64 58”/59” 245 1.90 38 100% cotton 3/1 twill 20×16/140×64 58”/59” 270 2.00 39 100% cotton twill 20×16/128×60 58”/59” 260 1.95 40 100% cotton 3/1 twill 24×24/98×64 58”/59” 165 1.70 41 100% cotton 2/1 twill 24×24/100×64 58”/59” 167 1.75 42 100% cotton twill 30×30/126×72 58”/59” 160 1.75 43 100% cotton twill 30×30/144×72 58”/59” 176 1.95 44 100% cotton 2/1 twill 30×30/130×70 58”/59” 165 1.80 45 100% cotton 2/1 twill 30×30/140×80 58”/59” 190 1.90 46 100% cotton 2/1 twill 30×20/195×69 58”/59” 185 2.00 47 100% cotton 4/1 satin twill 40×40/128×91 58”/59” 134 2.15 48 100% cotton heavy twill 40/2×20/2/124×60 58”/59” 300 2.75 Page no. 15
  • 18. We visited some local woven textile industry & collect them of costing woven fabric. We try to collect more information but for as per company policy most of the time they don’t co-operate with us. Here we try to give concept local woven fabric costing process. This may vary industry to industry. 3.1 Total cost of grey fabric depends on:- Gas cost Labor cost Maintenance cost Building rent cost Sizing cost Transport cost Electricity cost Voluntary cost Total Air jet Machine=30 Number of loom =30 Per Shift production =150 meter Per day Production =300 meter Monthly Cost Analysis Depreciation = 1400000 tk Financial Charge =1625000 tk Admin =75000 tk Miscellaneous =50000 tk Total=3600000 tk Cost Analysis Daily Cost =60000 tk Per loom cost=2000 tk Cost of yarn & other materials/meter=30 tk Price per meter=35 tk Page no. 18
  • 19. Profit Analysis Contribution =5 tk Daily Contribution =5×30=150 tk Profit per day per loom =150×30=300 tk Profit per day =300×30=9000 tk Profit per month =9000×30=270000 tk Expire parts sales/month =5000 tk Total =2750000 tk Total Cost analysis Building Rent Cost =20000 tk Officers+ Workers Cost =100000 tk Sizing Cost =10000 tk Maintenance Cost =10000 tk Electricity Cost =50000 tk Gas Cost =20000 tk Transport Cost =10000 tk Voluntary Cost =5000 tk Total =225000 tk Total Profit in Local Textile mill per month= (275000-225000) tk =50000 tk Gray Fabric Cost Per meter Total profit=275000 tk Total gray fabric length=9000 meter Total cost per meter=(275000/9000) tk/meter =30.55 tk/meter Page no. 19
  • 20. 3.2 Study of cost calculation based on local market price. Here we adopted local yarn price and local fabric making charge. Sample No.1 100% cotton sheeting (calico) 60×60/14×14 Let us consider, Warp crimp= 5 % Weft crimp=5 % Fabric wastage=3 % We consider Woven Cotton Carded Yarn: Yarn Price Status May,2010 in $ Weight of warp Weight of warp= 107.40 gm.= 0.2367 lb Price of warp yarn= 0.2367 *3.25 $ = 0.769 $ Weight of weft Weight of weft= 107.40 gm.= 0.2367 lb Price of weft yarn= 0.2367 *3.25 $ = 0.769 $ Fabric weight= (107.40 + 107.40) gm. = 214.81 gm Fabric price per meter= (Price of warp yarn + Price of weft yarn) = (0.769 $ + 0.769 $ ) = 1.53 $ 16K 100% Cotton 3.20-3.25 20K 100% Cotton 3.25-3.30 30K 100% Cotton 3.55-3.55 Page no. 20
  • 21. We collect recent yarn market price for 14 Ne 3.25 Making charge 0.45 $ Then finally 60×60/14×14 fabric price is 1.98 $. Sample No 2 Weight of warp Weight of warp= 93.98 gm. = 0.207 lb Price of warp yarn= 0.207 *3.25 $ = 0.673 $ Weight of weft Weight of weft= 93.98 gm. = 0.207 lb Price of weft yarn= 0.207 *3.25 $ = 0.673 $ Fabric weight= (93.98 + 93.98) gm. = 187.96 gm Fabric price per meter= (Price of warp yarn + Price of weft yarn) = (0.673 $ + 0.673 $) = 1.34 $ We collect recent yarn market price for 16 Ne is3.25 $ Making charge 0.45 $ Then finally 60×60/16×16 fabric price is 1.796 $. 100% cotton sheeting 60×60/16×16 Page no. 21
  • 22. Sample No3 Weight of warp Weight of warp= 75.18 gm. = 0.165 lb Price of warp yarn= 0.165 *3.30 $ = 0.546 $ Weight of weft Weight of weft= 75.18 gm. = 0.165 lb Price of weft yarn= 0.165 *3.30 $ = 0.546 $ Fabric weight= (75.18+ 75.18) gm. = 150.36 gm Fabric price per meter= (Price of warp yarn + Price of weft yarn) = (0.546 $ + 0.546 $) = 1.092 $ We collect recent yarn market price for 20 Ne is3.30 $ Making charge 0.45 $ Then finally 60×60/20×20 fabric price is 1.542 $. Sample No 4 Weight of warp Weight of warp= 56.806 gm. = 0.125 lb Price of warp yarn= 0.125 *3.55 $ = 0.444$ 100% cotton sheeting 60×60/20×20 100% cotton sheeting 68×68/30×30 Page no. 22
  • 23. Weight of weft Weight of weft= 56.806 gm. = 0.125 lb Price of weft yarn= 0.125 *3.55 $ = 0.444$ Fabric weight= (56.806+ 56.806) gm. = 113.612 gm Fabric price per meter= (Price of warp yarn + Price of weft yarn) = (0.444 $ + 0.444 $) = 0.888 $ We collect recent yarn market price for 30 Ne is3.55 $ Making charge 0.45 $ Then finally 68×68/30×30 fabric price is 1.338 $. Page no. 23
  • 24. 3.3 Development of fabric cost from Priyank Goyal (www.textile notes.blogspot.com) conception and consumption ratio for outside mills. During our literature survey we came across with a web site on textile engineering. In fact this was maintained by the Priyank Goyal who is an expert on textile and apparel and working as consultant on costing as well as an academic who deliver lectures in NIFT at New Delhi . Currently he is working as Senior Buyer (Garment Fabric and Accessories) in a retail organization in India. He has developed an excel sheet on costing which is described below. Using the sheet we have calculated the cost of woven fabric. Priyank Goyal Excel File, We use the local raw materials price then input it on this Excel File then finally we get different types of gray fabric price. . Construction=20×20/60×56 Grey width=64” Warp 20 Ne Weft 20 Ne Warp Price 500 Ends 60 Weft Price 500 Picks 56 Width 64 inch Per Yard Per Meter Width 1.7777778 yds Warp Cost =(Warp price ×warp wt of 1 yd of fabrics)/10 13.04 14.27 Weave 1/1 Weft Cost =Weft price ×weft wt of 1 yd of fabrics)/10 =11.92 13.03 Warp Contraction 10.0% 24.96 27.30 Weft Contraction 5.0% Page no. 24
  • 25. Warp Wastage 3.0% Weft Westage 5.6% B-grade 1.0% Total warps = Ends× width =3,840 Warp Count 20 Length of 1 lb of warp = warp count× 840 =16,800 Weight of 1 yard of warp (1/Length of 1 lb of warp) = (1/16800) = 0.00 Lbs Weight of 1 yard of all warps = ( Total warp/ weight of 1 yard warp) =(3840/16800) =0.23 Lbs Warp wt of 1 yard of fabric =(Weight of 1 yard of all warps(1+ Warp Contraction+ Warp Wastage)×(1- B grade) = 0.23×(1+ 0.10+0.03)×(1- 0.01) =0.26 Lbs Weft Count 20 Length of 1 lb of weft = (Weft count×840) =(20×840) 16,800 Weight of 1 yard of weft =(1/Length of 1 lb of weft) = (1/16800) =0.00 Lbs Wt of 1 pick adjusted for waste & B- grade =(Weight of 1 yard of weft×(1+ Weft Contraction+ Weft Lbs Page no. 25
  • 26. Wastage)×(1- B grade)×width 0.00 Weight of picks in one linear inch of fabric =Wt of 1 pick adjusted for waste & B-grade× picks =0.01 Lbs Weft wt of 1 yard of fabric 0.24 lbs To using this Excel file we get the flowing of data different types of fabrics costing:- Fabric Types Construction Price/yds Tk Plain 20×20/60×56 38.438 100%cotton Sheeting(calico) 60×60/14×14 38.438 100% cotton sheeting 60×60/16×16 45.02 100% cotton sheeting 20×20/60×60 36.65 100% cotton Poplin 110×60/20×20 52.08 100% cotton Poplin 102×72/24×24 44.36 100% cotton heavy Poplin 124×78/30×30 41.22 100% cotton Poplin 128×72/40×40 30.63 100% cotton Poplin 146×72/40×40 33.40 100% cotton Poplin 148×51/50×50 34.43 100 % cotton Oxford (2/2 matt) 40×30/98×76 20.44 100 % cotton cellular poplin 40×40/128×81 29.42 Page no. 26
  • 27. 3.4 Development of fabric cost by Enid Williams (http://www.haleystudio.com/yarn_calc.html) conception and consumption ratio for outside mills. Enid Williams is a Web developer & textile artist. He was developed a yarn calculator which can help to determine how much yarn is required for a weaving project. We are using this yarn calculator software for required weaving calculation. Weft: Finished piece: woven width desired: 58 inches (without fringe) Shrinkage due to fiber content: 10 % Draw-in in weave (esp. if weft-faced): 10 % Picks Per Inch: 64 Weft Yarn: 40 1.8 yards/lb $/lb Results: Width at the reed: 71.605 Inches Page no. 27
  • 28. Warp: Finished piece: woven length desired: 4500000 inches ( without fringe) Shrinkage due to fiber content: 10 % Test sample allowance: 0 Inch Take-up in weave (esp. if warp-faced): 0 % Fringes: 3 Inch Loom waste (20-30): 25 Inch Ends Per Inch (Sett): 133 Width at the reed: 71.605 Inch Warp Yarn: 40 1.8 yards/lb $/lb Results: Length of one warp: 5000031 Inch Number of warp threads (ends): 9523 Total yarn length needed (warp): 1322647089.25 yards 1209428498.4 1 meters Pounds of yarn needed (warp): 33066177.23 14998817.99 kg Yarn cost, warp: $ 59519119.01 Number of weft threads (picks): 288000000 Total yarn length needed (weft): 572840000 Yards 523804896 meters Pounds of yarn needed (weft): 14321000 6496005.6 kg Yarn cost, weft: $ 25777800 Total yarn cost: $ 85296919.01 Page no. 28
  • 29. 3.5 Cost calculated using strategy adopted local fabric manufacturing company. GSM of Fabric Price in tk Fabric construction Fabric name 214.815 4 132.66 60×60/14×14 100% cotton sheeting (calico) 187.963 5 120.33 60×60/16×16 100% cotton sheeting 150.370 8 103.31 60×60/20×20 100% cotton sheeting 113.613 5 89.64 68×68/30×30 100% cotton sheeting GSM VS PRICE 0 20 40 60 80 100 120 140 0 50 100 150 200 250 GSM Priceintk Fig-1: Effect on GSM in Fabric price GSM of Fabric Price in tk Fabric construction Fabric name 213.01 133.84 110×60/20×20 100% cotton Poplin 160.38 114.11 124×68/30×30 100% cotton heavy Poplin 151.19 109.35 100×81/30×30 100% cotton heavy Poplin 137.83 100.188 102×72/24×24 100% cotton Poplin Page no. 29
  • 30. GSM VS PRICE 0 20 40 60 80 100 120 140 160 0 50 100 150 200 250 GSM Priceintk Fig-2: Effect on GSM in Fabric price 3.6 Cost information adopted from a book written by M.A Razzaque Cost of woven fabric is the main concern of a garment merchandiser. M.A Razzaque has written a book on garment merchandising and reported a lot of fabric and their costs. Some of the fabric prices are mentioned as follows; GSM of Fabric Price in tk Fabric construction Fabric name 214.815 4 110.55 60×60/14×14 100% cotton sheeting (calico) 187.963 5 107.2 60×60/16×16 100% cotton sheeting 150.370 8 90.45 60×60/20×20 100% cotton sheeting 113.613 5 83.75 68×68/30×30 100% cotton sheeting Page no. 30
  • 31. GSMVSPRICE 0 20 40 60 80 100 120 0 50 100 150 200 250 GSM PRICEINTK. Fig-3: Effect on GSM in Fabric price GSM of Fabric Price in tk Fabric construction Fabric name 213.01 117.25 110×60/20×20 100% cotton Poplin 160.38 123.95 124×68/30×30 100% cotton heavy Poplin 151.19 120.6 100×81/30×30 100% cotton heavy Poplin 137.83 120.6 102×72/24×24 100% cotton Poplin GSM VS PRICE 116 117 118 119 120 121 122 123 124 125 0 50 100 150 200 250 GSM Priceintk Fig-4: Effect on GSM in Fabric price 4.7 Development of fabric cost from Priyank Goyal ( www.textile notes.blogspot.com) conception and consumption ratio for outside mills. GSM of Price in Fabric Fabric name Page no. 31
  • 32. Fabric tk construction 214.815397 1 42.4 60×60/14×14 100% cotton sheeting (calico) 187.963472 5 42.24 60×60/16×16 100% cotton sheeting 150.370778 49.24 60×60/20×20 100% cotton sheeting 113.613476 7 29.76 68×68/30×30 100% cotton sheeting GSM VS PRICE 0 10 20 30 40 50 60 0 50 100 150 200 250 GSM Priceintk Fig-5: Effect on GSM in Fabric price GSM of Fabric Price in tk Fabric construction Fabric name 213.01 56 110×60/20×20 100% cotton Poplin 160.38 42.15 124×68/30×30 100% cotton heavy Poplin 151.19 39.65 100×81/30×30 100% cotton heavy Poplin 137.83 47.69 102×72/24×24 100% cotton Poplin Page no. 32
  • 33. GSM VS PRICE 0 10 20 30 40 50 60 0 50 100 150 200 250 GSM Priceintk Fig-6: Effect on GSM in Fabric price CHAPTER-4 DISCUSSION Page no. 33
  • 34. 4.1 Discussion: Costing of woven fabric is very complex and not easy as it depends on mainly variables e.g. geographical condition the country concerned labor cost which very widely from country to country. Cost of power which is also varies from country to country, types of loom which widely varies costing of woven fabrics. Within the loom is not brand new is also a factor. Attempt has been made to collect information for local factories but response was not very good as costing is always a trade secretes which no body wants to disclose. Having this is said we have collected information from web sites, then when we from excel sheet or formulas to developed by experts calculates fabric cost. We have determined the cost of fabric using those tools. It was however observed that they are big difference among then. One important finding was that shown below by figure:- GSM VS PRICE 0 20 40 60 80 100 120 140 0 50 100 150 200 250 GSM Priceintk Fig:- Effect on GSM in Fabric price(Local Fabric Manufacturing company) As the GSM increase fabric price also be increase but the rate of increase of price relatively low which may be due to the facts that as GSM increase most of cost factors remain constant except raw material. Another findings was that the cost of fabric very widely from quality to quality. This is again related weaving factors. Two fabrics may have same GSM but different PPI and weft cover factor. The fabric which PPI is higher and weft cover factor more will generate much be a great problem in weaving loom due to a great price. Page no. 34
  • 36. 5. Conclusion: The work reported here describe method of calculation cost of woven fabric very widely depends on the factors like concern country’s labor cost, power, tax & vats imposed by the country. Page no. 36
  • 38. 6.1 REFERENCES 1. Development of fabric cost by Enid Williams (www.haleystudio.com/yarn_calc.html) 2. Garment & Textile Merchandising M.A Razzaque 3. Priyank Goyal (www.textile notes.blogspot.com) Page no. 38