Thursday, June 10, 2010

FABRIC COST

calculating cost of a fabric.
PRICE OF A FABRIC
1) raw material cost
2)weaving cost
3)processing cost
4)yarn dyeing cost
5)packaging cost
6)greychecking cost
7)excise and other duties cost
8)machine and land depreciation cost
9)man power cost
10) power and water cost
11)profit

COSTING AND PRICING OF A FABRIC


COSTING OF A FABRIC


Costing of any thing in this world is very complicated thing .

But what we think is complicated is nothing but a very simple thing if we anyalize it into the deep of it .


Factors affecting for any product suppose a grain we take as an example .

1)  Investment for the seeds
2)  Investment for Urea and Other products 
3)  Cost of water utilized.
4)  Electricity cost .
5)  Cost of labors Working in the Field .
6)  Working Capital of Land and its Depreciation cost against any loans .
7)  Profit 
8)  Wastage / Loss incurred due to Natural Cause ,  Insects , etc ..
9)  Cost of Equipments Involved during the Process stage .

As we see above just for a simple grain which we grow in our fields has very complicated but a very basic process of costing .

Same as this there are many factors which affect the cost of a fabric .
As every Investor will try to pull out  all his investment as soon as possible .

How soon he can recover his Investment is the real game .

Now we will go deep into the process of manufacturing a fabric  .

What i will require to manufacture a fabric of any kind .

1)    Land 
2)   Building 
3)   Machine 
     a)  Weaving Machine 
     b)  Warping Machine 
     c ) Grey Checking Machine 
     d ) All other Machines Involved During the process .
4)  Loan .


The total cost of the Investement will Decide the Margin cost per pick .

This is the very Basic cost which will be always constant after the investment is done .

This cost always depends and changes as per your demographic conditions and your bargain.

Every manufacturer knows this cost .

So let this cost be secret for my entrepreneur friends .

But we can discuss the another part which also plays a vital role in deciding the price of any given fabric .


Pricing of the fabric in any Textile unit is done only by the owners or the high profile managers or anyone having a good Knowledge in the field of Textiles .

Calculating the price of a given Fabric  


At any given instance lets assume the basic costing of Shirting fabirc.

Lets assume any Basic construction just for example .
The Below sort is just a hypothetical sort .

Warp - 2/80 s cotton dyed yarn .

Weft - 2/100 s cotton dyed yarn .

Ends per Inch  =  130 

Picks per Inch  = 90 

Fabric Width   = 40 inches 

Normally its given the Finished Width .



Calculating the weight of a Fabric .

Warp weight   for any given Flat woven fabric is 

= (Total on of Ends  x  Total Mtrs  x  Wastage percentage  x  Warp Denier ) / 9000,000

Therefore  for the above sort


Total Ends  =  Fabric Width  x  Ends per Inch  x Shrinkage Percentage.

Normally cotton shrinkage is 8% - 10% .

Total Ends  = 40  x 130 x 10% 

                     = 5720  ends of 2/ 80 cotton dyed yarn .


Warp weight  = 5720 x 100 x 8% x 40 / 9000,000

                        = 2.7456 kgs 

Weft weight   for any given Flat woven fabric .

= Total mtrs x reed space x picks per inch x wastage % x denier of weft/ 9000000

= 100 x44 x 90 x 1.08 x 50 / 9000,000

= 2.376


Therefore 

Fabric weight = Warp Weight  + weft weight 

                         = 2.7456  + 2.376 
                         = 5.1216 kgs for 100 mtrs 

RAW MATERIAL COST  OF FABRIC 

Yarn cost of warp and weft is to be known .

Suppose the Warp yarn Cost is 5 usd / kgs 
and the weft is 7 usd / kgs .

then the cost of  Fabric per 100 mtrs

= (2.7456 x 5 ) + ( 2.376 x 7 )

= 13.728  +  16.632 

= 30.36 usd / 100 mtrs .

PRICE PER MTRS = 0.3036 USD / MTRS .


FINAL COST OF FABRIC 


BASIC  COST =( RAW MATERIAL COST + INVESTEMENT COST ) 


FINAL COST = BASIC COST + PROFIT AS PER BASIC COST.


ASSUMING INVESTMENT COST/MTRS IS 30 CENTS 

AND PROFIT @ 30% 


= (0.3036  + 0.30 ) 

= 0.6036 USD / MTRS 

= 0.6036 + 30%

= 0.78468 USD / MTRS

FINAL PRICE = = 0.78468 USD / MTRS.


WELL THIS PRICE IS FOR MANUFACTURER HE MUST OWE IT ANYHOW TO RUN THE BUISNESS .








  








Thursday, January 21, 2010

PRODUCTION CALCULATION FOR WEAVING LOOMS.


PRODUCTION CALCULATION FOR WEAVING LOOMS




Weaving Calculation for weaving looms differ from different types of machines .But the Basic calculation remains the same .

Factors which effect the production are only two main things .

1) RPM (Revolution per minute )  of Machine .

2) Weaving Efficiency .



What is 100% production  of any given machine in terms of picks .

= RPM    X    WORKING HOURS   X   60

RPM  means that for every revolution of the motor one pick inserted .
60 signifies the conversion factor  of hrs to minutes .

For example :- My machine runs at 600 RPM  for a shift of 24 hrs .

Then the Total Picks inserted for the day

= 600 x 24 x 60

= 864000 picks

Therefore at a given day at 100% efficiency  864000 picks are inserted .


Calculating Production 

Nowadays on modern machines calculating the production on the machine is not tedious .

We get all the information on the machine panel .

Thanks for the Technology .

Today there are counters on the machine to calculate the number of picks inserted .

This information can be taken manually  from the machine , or installing cad /cam system provided by the machine manufacturer or by different interfacing  hardware /software available  in the market .

Factors affecting the productivity of a machine .

1) Efficiency .
2) Picks Per Inch / Cms.


Efficiency  of the machine  = (Final Reading of the machine  - Intial Reading of machine ) x 100
                                                            Total no of picks @ 100% inserted ( 864000)

Production per shift of 24 hrs in mtrs 

                        =  Total no of picks inserted per shift / (picks per cm   x 100 )

or

                     = Total no of Picks Inserted per shift  /  ( picks per inch x 39.37 )



Total  no. of Picks    = (Final Reading of the machine  - Intial Reading of machine ).




Conclusion :-

Production of Loom  =  (RPM  X  WORKING HRS  X 60  X EFFICIENCY %)  /  ( PICKS PER INCH X 39.37)


Hope This Information to all my friends .

Thanks

Ramesh Prajapati

D.K.T.E College of Engg ,Ichalkaranji.