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Department of Textile Engineering

Study on costing of woven fabrics in Bangladesh Submitted By:

Md. Abul Fazal Hoque. ID NO: 071-23-424. Md. Arman Islam ID NO : 072-23-469 Md. Golam Maola ID NO: 071-23-447 Level-4, Term-3 Department of Textile Engineering

Submitted To: Dr.Md. Mahabubul Haque Head of the department of Textile Daffodil international university

Objective of the project:

People perform their activities to reach an ultimate goal. We also did our thesis work to reach our desired goal. Our aim was to find out the costing procedure of woven fabrics in Bangladesh. We collected data from local market, local industry & also Internet. Finally we compared the result of costing system of woven fabric with the local market, local industry & internet.

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 inherent costs while costing. 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.

Consideration point before going to costing:

Direct cost Indirect cost Profit Cost Factors which are considered in calculating cost of woven fabrics. Type of raw material

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%.

Factors which are considered in calculating cost of woven fabrics Amount of raw material or GSM of the fabric Relation between GSM and cost is a little complex. For the same variety of the fabric, as the GSM increases the cost increases. Sizing and Chemicals Cost Production cost or cost of weaving process Mill-made or power loom made Wastage and shrinkage Dyeing costs Finishing cost Shrinkage and wastage

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

Weaving Daily production per loom ( 20x16/128x60 63" ) Total Looms Daily production for the unit 500 Meter

120 60,000 Meter

Monthly Fixed Cost

Say Depreciation Financial Charges Admn Miscellaneous TOTAL 5,600,000 6,500,000 300,000 2,000,000 14,400,000

DAILY 480,000 Daily fixed cost per loom 4,000

Profitability Analysis
Cost of yarn & other materials per meter Price per meter Contribution Daily Contribution per loom Profit/(Loss) per day per loom Profit/(Loss) per day Profit/(Loss) per month 50 59 9 4,500 500 60,000 1,800,000

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 dont co-operate with us. Here we try to give concept local woven fabric costing process. This may vary industry to industry. Total cost of grey fabric depends on:Gas cost Labor cost Maintainers cost Building rent cost Sizing cost Transport cost Electricity cost voluntary cost

Suppose 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

Profit Analysis Contribution =5 tk Daily Contribution =530=150 tk Profit per day per loom =15030=300 tk Profit per day =30030=9000 tk Profit per month =900030=270000 tk Expire parts sales/month =5000 tk Total =2750000 tk

Total Profit in Local Textile mill per month = (275000-225000)tk =50000 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

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

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) Let us consider, Warp crimp= 5 % Weft crimp=5 % Fabric wastage=3 % 6060/1414

We consider Woven Cotton Carded Yarn: Yarn Price Status May,2010 in $ 16K 100% Cotton 3.20-3.25 20K100% Cotton 3.25-3.30 30K100% Cotton 3.55-3.55

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 $

We collect recent yarn market price for 14 Ne 3.25 Making charge 0.45 $ Then finally 6060/1414 fabric price is 1.98 $.

For Poplin GSM of Fabric 213.01 160.38 151.19 137.83

Price in tk 133.84 114.11 109.35 100.188

For Sheeting GSM of Fabric 214.8154 187.9635 150.3708 113.6135

Price in tk 132.66 120.33 103.31 89.64

GSM VS PRICE
160 140 120
140 120
Price in tk

GSM VS PRICE

Price in tk

100 80 60 40 20 0 0 50 100 GSM 150 200 250

100 80 60 40 20 0 0 50 100 GSM 150 200 250

Fig-1: Effect on GSM in Fabric price

Fig-1: Effect on GSM in Fabric price

Development of fabric cost from 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. Suppose Fabric Construction=2020/6056 Grey width=64

Warp 20 Ne Weft 20 Ne Ends 60 Picks 56 Width 64 inch Width 1.7777778 yds Weave 1/1 Warp Contraction 10.0% Weft Contraction 5.0% 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 count840) =(20840) =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 Wastage)(1- B grade)width =0.00 Weight of picks in one linear inch of fabric =Wt of 1 pick adjusted for waste & Bgrade picks =0.01 Weft wt of 1 yard of fabric 0.24

Warp Price 500 Weft Price 500

Per Yard Warp Cost =(Warp price warp wt of 1 yd of fabrics)/10 =13.04 Weft Cost =Weft price weft wt of 1 yd of fabrics)/10 =11.92 Total per yard =24.96 Total per meter =27.30

For Poplin GSM of Fabric 213.01 160.38 151.19 137.83

Price in tk 56 42.15 39.65 47.69

For Sheeting GSM of Fabric Price in tk 214.8153971 42.4 187.9634725 42.24 150.370778 49.24 113.6134767 29.76
GSM VS PRICE
60 50
Price in tk

GSM VS PRICE
60 50

Price in tk

40 30 20 10 0 0 50 100 GSM 150 200 250

40 30 20 10 0 0 50 100 GSM 150 200 250

Fig-6: Effect on GSM in Fabric price

Fig-6: Effect on GSM in Fabric price

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:Description Of Construction
Fabrics 100% cotton 6060/1414 sheeting (calico) 58/59 220 1.65

Weight( Grams per Finished Width

square meter)

Price/Yd.(in Usd)

100% cotton 6060/1616

sheeting

58/59

185

1.60

100% cotton Poplin

11060/2020

160

1.75

100% cotton Poplin

10272/2424

178

1.80

For Poplin GSM of Fabric 213.01 160.38 151.19 137.83

Price in tk 117.25 123.95 120.6 120.6

For Sheeting GSM of Fabric 214.8154 187.9635 150.3708 113.6135

Price in tk 110.55 107.2 90.45 83.75

GSM VS PRICE
125 124 123 122 121 120 119 118 117 116 0 50 100 GSM 150 200 250

GSM VS PRICE
120 100
PRICE IN TK.

Price in tk

80 60 40 20 0 0 50 100 GSM 150 200 250

Fig-3: Effect on GSM in Fabric price

Fig-3: Effect on GSM in Fabric price

Discussion Costing of woven fabric is very complex and not easy as it depends on mainly variables e.g. geographical condition of the country concerned labor cost which very varies from country to country. Cost of power which is also varies from country to country. 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.

We have collected information from web sites, then collect from excel sheet or formulas to developed by 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

140 120

Price in tk

100 80 60 40 20 0 0 50 100 GSM 150 200 250

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.

Conclusion:

The work reported here describe method of calculation cost of woven fabric very widely depends on the factors like concern countrys labor cost, power, tax & vats imposed by the country.