Fabric

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.

Fabric
Indirect cost : Interest on investment, loan, working capital, depreciation, etc. Above 7%, overheads and administrative expenses like travelling, telephone, couriers, legal issues, taxes comprising of 7%.

Fabric
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.

Fabric
Raw material cost includes cost of fibre or yarn. The cost of the fibre 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 realisation is only about 70% incase of combed yarns because short fibres are removed where as in case of carded, the yarn realisation is about 88%. Combed yarns have more lustre 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.

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.

Amount of raw material or GSM of the fabric

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 GSM = A+B

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 Rs 35/kg as additional cost which includes steam, power or wages. For two plied yarn no sizing is required.

Production cost or cost of weaving process

It includes machine running cost, maintenance, labour

cost, power & fuel, etc. The 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

Mill-made or powerloom 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 Rs 22/mt and Rs 34/mt. It depends on the type of loom whether powerloom, 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 = 8 paisa/pick/inch/sq nmt which means that for a 120 inch width fabric the cost will be 24 paisa/pick/mt.

Mill-made or powerloom made:

For twill weave, the cost = 12 paisa/pick/inch/sq mt. For satin weave, the cost = 12 paisa/pick/inch/sq mt. In case of P/V suiting, the cost ranges from 14 paisa/pick to 20 paisa/pick. For 1,000 m beam with dobby, the weaving cost is 17 paisa/pick and for 1,000 m beam with jacquard is 20 paisa/pick. For dobby, the cost = 12 paisa/pick/inch/sq mt. For 2400 hook jacquard the cost = 40 paisa/pick/inch/sq mt. For double beam fabrics like seer sucker, the cost is = 20 paisa/pick/inch/sq mt. There is no standardisation in dobby and jacquard fabrics. These fabrics are produced in different textile centres like Bhiwadi, Surat, Banaras, Meerut, Panipat and the quality varies a lot. For yarn dyed stripes and checks in handloom the efficiency is affected by the number of colours 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 colours in the warp or weft.

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.

Dyeing costs
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 Rs 1 - 2/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 Rs 10, but the cost of dyeing 120" width fabric is Rs 22. Shade%: Lighter the shade lower the cost. The amount of dye required is less as well as 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.

Dyeing costs
Colour: Within the same dye class some colours are more expensive

than the other. For eg, turquoise and reds are more expensive. Metamerism: Some colours change their shade in different lights. If the shades are matched in two or three lights only then the cost is less, but when the matching is required in all the six lights, natural daylight (D-65), Tube light (TL-83), Horizon (yellow light as produced during sun set), Incandescent, (Inca-A), Fluorescent (CWF or cool white Fluorescent), Ultraviolet light (UL-30 or ultra luma) or no metamerism is required, then better quality dyes are required and the cost is more. 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.

Finishing cost
Process Cost
Flame retardant finish -15Rs/mt Antistatic finish-5 Rs/mt

Anti stain-10Rs/mt
Anti wrinkle-5Rs/mt

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 acceptable. Below is a detail shows approx shrinkage of different fabrics: Poplin, Sheeting -3% Cotton Voile, cambric -5% Polyyester/Viscose blend fiber-dyed -4.5-5% Polyester viscose piece-dyed -6%

Costing
Costing is a very complex procedure. There are set

patterns and guidelines followed by the industry. It is difficult to find out costs for every process as there are some inbuilt costs while costing. A larger picture has been taken into account while quoting the cost. Costing depends a lot on quantity and order received. Indirect cost is about 15 - 20%. On top of the cost a profit of 15 - 20% is added. It is not only the cost of the final product that matters, for exports the cost is generally given as FAS, FOB, CIF and LDP.

Trim

Assignment 1
Market survey of costing parameter of fabric and

trims along with cost Marks 20 : (Collection of data 5, Authentication of data 5, Documentation 10 Presentation 10 ) Document Submission date : 23/02/12. Presentation : 1/03/12 Students can be divided maximum in group of 3.

Group 1

Group 2

Group 3

Group 4

Group 5

Group 6

Group 7

Rayon

Silk

Cotton Poplin

Polyester Wool Cambric

Linen

Lycra Twills

Georgette Moss Crepe

Chambra Voiles y

Canvass

Seer Sucker

Chiffon
Thread

Single Jersey

Interlock Pique
Zipper

Sateen
Shoulder Pads

Interlinin Button g

Hang Tag Hanger

Lining , Hook Pocketing and Bar

Cartons

Labels

Polybag

Lace

Mobilon Tape