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.

Page no. 5
2.2.4 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.
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.

Page no. 6
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.
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
30tk/mt
finish
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.

Page no. 7
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
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
4.5-5%
blend fiber-dyed
Polyester viscose piece-
6%
dyed
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

or 5 years)

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

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

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 20 12
Rapier loom
Total cost of 24 480 288
looms
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 Second hand Rapier

Taka/meter 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 0.27 0.63
Maintenance
Water for 0.30 0.30
humidification
Depreciation 10% 2.90 3.00
annum
Total conversion 13.19 16.38
cost/meter
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 Tk.30 loom shift new looms
maintenance 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. Description Of Construction Finished Weight( Price/Yd.

No. Fabrics Width Grams per (in Usd)
square
meter)
Sheeting
1 100% cotton 6060/1414 58/59 220 1.65
sheeting (calico)
2 100% cotton 6060/1616 58/59 185 1.60
sheeting
3 100% cotton 6060/2020 58/59 150 1.35
sheeting
4 100% cotton 6868/3030 58/59 115 1.25
sheeting
Poplin
5 100% cotton Poplin 11060/2020 58/59 160 1.75
6 100% cotton Poplin 10272/2424 58/59 178 1.80
7 100% cotton heavy 10081/3030 58/59 148 1.80
Poplin
8 100% cotton heavy 12468/3030 58/59 158 1.85
Poplin
9 100% cotton 12872/4040 58/59 123 1.70
Poplin
10 100% cotton Poplin 14672/4040 58/59 133 1.85
11 100% cotton Poplin 13372/4040 58/59 128 1.75
12 100% cotton Poplin 11070/4040 58/59 110 1.60
13 100% cotton Poplin 133100/4040 58/59 150 1.95
14 100% cotton Poplin 128100//4040 58/59 145 1.90
15 100% cotton Poplin 7472/40/230 58/59 150 1.90
16 100% cotton Poplin 14881/5050 58/59 118 2.25
17 100% cotton 11076/6050 58/59 80 2.00
Premium Poplin
18 100% cotton 10891/8080 58/59 60 2.25
Premium Poplin
19 100% cotton 12898/80/280 58/59 108 2.50
Premium Poplin

Page no. 14
Sl. Description Of Construction Finished Weight( Price/Yd.
No. Fabrics Width Grams per (in Usd)
square
meter)
Canvas
20 100% cotton 1010/7444 58/59 315 2.35
canvas
21 100% cotton light 1616/9615 58/59 235 1.95
canvas
22 100% cotton light 2020/10050 58/59 185 1.65
canvas
23 100% cotton 2016/10050 58/59 195 1.70
canvas
24 100% cotton 20/210/7242 58/59 312 2.50
canvas
25 100% cotton 30/230/2/11652 58/59 286 2.40
canvas
26 100% cotton 30/216/10048 58/59 260 2.25
canvas
27 100% cotton 40/240/2/11250 58/59 198 2.25
canvas
28 100% cotton 40/220/11054 58/59 192 1.85
canvas
29 100% cotton 100/2100/2/14481 58/59 118 2.95
canvas
Twill
30 100% cotton heavy 77/7244 58/59 410 2.50
twill
31 100% cotton twill 107/7446 58/59 350 2.45
32 100% cotton twill 1010/744 58/59 310 2.35
33 100% cotton twill 1612/10856 58/59 390 2.15
34 100% cotton twill 167/12050 58/59 385 2.60
35 100% cotton twill 2020/10858 58/59 210 1.70
36 100% cotton zigzag 2020/10860 58/59 210 1.80
twill(Herringbone)
37 100% cotton twill 2016/14064 58/59 245 1.90
38 100% cotton 3/1 2016/14064 58/59 270 2.00
twill
39 100% cotton twill 2016/12860 58/59 260 1.95
40 100% cotton 3/1 2424/9864 58/59 165 1.70
twill
41 100% cotton 2/1 2424/10064 58/59 167 1.75
twill
42 100% cotton twill 3030/12672 58/59 160 1.75

Page no. 15
43 100% cotton twill 3030/14472 58/59 176 1.95
44 100% cotton 2/1 3030/13070 58/59 165 1.80
twill
45 100% cotton 2/1 3030/14080 58/59 190 1.90
twill
46 100% cotton 2/1 3020/19569 58/59 185 2.00
twill
47 100% cotton 4/1 4040/12891 58/59 134 2.15
satin twill
48 100% cotton heavy 40/220/2/12460 58/59 300 2.75
twill
49 100% cotton 2/1 5050/14880 58/59 118 2.50
twill
50 100% cotton 2/1 50/250/2/14870 58/59 220 2.90
twill
51 100% cotton twill 60/260/2/14476 58/59 190 2.85
Oxford
53 100 % cotton 207/12040 58/59 310 2.40
Oxford (Canvas)
54 100 % cotton 4080/2/15664 58/59 130 2.25
Oxford
55 100 % cotton 4020/2/10050 58/59 183 2.10
Oxford
56 100 % cotton 4030/9876 58/59 130 2.00
Oxford (2/2 matt)
57 100 % cotton 40/240/2/6068 58/59 156 2.10
Oxford
Dobby
58 100 % cotton 1610+10/10754 58/59 300 2.35
dobby (Matt)
59 100 % cotton 16+1612+12 58/59 278 2.25
dobby (Matt)
60 100 % cotton 2020/2/7460 58/59 235 2.25
dobby
61 100 % cotton rib 2020/11258 58/59 208 1.80
stop
62 100 % cotton baby 2020/13672 58/59 254 2.60
cord dobby
63 100 % cotton rib 2020/12060 58/59 250 2.15
cord (Ottoman)
dobby
64 100 % cotton weft 2016/6460 58/59 185 1.65
rib dobby
65 100 % cotton 2020/11058 58/59 160 2.00
dobby (Matt)

Page no. 16
66 100 % cotton 3030/13054 58/59 166 1.75
square dobby
67 100 % cotton 3030/13050 58/59 158 1.75
ottoman dobby
68 100 % cotton 3030/10872 58/59 146 1.95
dobby
69 100 % cotton 4040/12881 58/59 128 1.95
cellular poplin
70 100 % cotton bed 4040/12881 58/59 122 1.90
ford cord
71 100 % cotton 4040/12881 58/59 128 2.00
dobby
72 100 % cotton 4040/12872 58/59 122 1.95
dobby
73 100 % cotton 4040/14072 58/59 130 2.00
dobby
(Herringbone)
74 100 % cotton bed 4040/12078 58/59 121 1.90
ford cord
75 100 % cotton 4040/10080 58/59 110 2.00
waffle
76 100 % cotton rib 4040/13372 58/59 125 2.00
stop poplin
77 100 % cotton rib 4040/12076 58/59 120 1.90
stop poplin
78 100 % cotton rib 4040/13372 58/59 128 2.10
stop poplin
79 100 % cotton 40/240/2/6081 58/59 172 2.20
dobby
80 100 % cotton 40/220/12056 58/59 215 2.45
dobby
81 100 % cotton 5050/13084 58/59 115 2.50
dobby
82 100 % cotton rib 5050/14476 58/59 115 2.50
stop
83 100 % cotton 80/280/2/12872 58/59 122 3.00
premium dobby
84 100 % cotton 80/280/2/12881 58/59 128 3.10
premium dobby
Check twill
85 100% cotton y/d 1616/6857 58/59 190 2.10
check twill
86 100% cotton y/d 2020/6250 58/59 135 1.80
check twill
87 100% cotton y/d 2020/7054 58/59 150 1.75
check twill1.

Page no. 17
88 100% cotton y/d 2020/6060 58/59 150 1.65
check twill
89 100% cotton y/d 3030/8070 58/59 122 1.951.95
check twill
90 100% cotton y/d 3030/9060 58/59 125 1.90
check twill
91 100% cotton y/d 3030/7368 58/59 118 2.10
check twill
92 100% cotton y/d 4040/11070 58/59 110 2.15
check twill
93 100% cotton y/d 4040/11276 58/59 115 2.25
check twill
94 100% cotton y/d 4040/12070 58/59 116 2.15
check twill
95 100% cotton y/d 4040/11076 58/59 114 2.15
check twill
96 100% cotton y/d 4040/12064 58/59 112 2.05
check twill
97 100% cotton y/d 4040/11064 58/59 106 2.20
check twill
98 100% cotton y/d 4040/12080 58/59 122 2.15
check twill
99 100% cotton y/d 4040/12070 58/59 116 2.10
check twill
100 100% cotton y/d 4040/12376 58/59 125 2.15
check twill
101 100% cotton y/d 4040/13372 58/59 130 2.50
check twill
102 100% cotton y/d 5050/12476 58/59 105 2.50
check twill
103 100% cotton y/d 5050/11070 58/59 95 2.50
check twill
104 100% cotton y/d 5050/12476 58/59 105 1.50
check twill
105 100% cotton y/d 80/280/11076 58/59 115 3.15
check twill
106 100% cotton y/d 80/240/9870 58/59 105 2.40
check twill
107 100% cotton y/d 110/2110/2/11076 58/59 90 3.40
check twill

Sl. Description Of Construction Finished Price/Yd. Remarks

No. Fabrics Width (in Usd)
Y/D twill
108 100% cotton twill 2020/10858 57/58 14.40 Lead time
25 days

Page no. 18
109 100% cotton twill 2016/12860 57/58 1.65 Minimum
order5000
yds
110 100% cotton twill 1612/10856 57/58 1.70
111 100% cotton twill 1010/7444 57/58 1.70
112 100% cotton twill 1612/12860 57/58 1.80
113 100% cotton twill 77/7444 57/58 1.95
114 100% cotton twill 3030/13372 57/58 1.65
115 100% cotton 40/212/8878 57/58 2.30
broken twill
116 100% cotton 1012/7256 57/58 1.90
herring bone twill
117 100% cotton 2020/10050 57/58 1.40
canvas
118 100% cotton 2016/10856 57/58 1.55
canvas
119 100% cotton 1010/7444 57/58 1.65
canvas
120 100% cotton 167/11836 57/58 1.85
canvas
121 100% cotton 1616/9550 57/58 1.65
canvas
122 100% cotton 20/210/7242 57/58 1.95
canvas
123 100% cotton 40/216/10464 57/58 2.00
canvas
124 100% cotton 40/232/4/10856 57/58 2.15
canvas
125 100% cotton 40/240/2/10856 57/58 2.20
canvas
126 100% cotton 107/7240 57/58 1.80
canvas
127 100% cotton 1610/11040 57/58 1.80
canvas
128 100% cotton 16+1612+12/11256 57/58 1.85
Panama canvas
129 100% cotton 12+1212+12/8054 57/58 1.85
Oxford canvas
130 100% cotton 30(10+10)/13060 57/58 2.00
Ottoman
131 100% cotton 20(10+10)/12050 57/58 1.85
Ottoman
132 100% cotton 30(7+7)/10050 57/58 2.05
Ottoman
133 100% cotton rib 2016/10456 57/58 1.60

Page no. 19
 stop
134 100% cotton rib 1616/10464 57/58 1.65
stop
135 100% cotton rib 2020/10050 57/58 1.45
stop
136 100% cotton poplin 4040/13372 57/58 1.55
fored cord
137 100% cotton poplin 1612/10856 57/58 1.58
ford cord
138 100% cotton poplin 1612/12054 57/58 1.95
ford cord
139 100% cotton twill 1012/9652 57/58 2.00
140 100% cotton 2020/6060 57/58 0.90
sheeting
141 100% cotton 3030/6868 57/58 0.95
sheeting

Sl. Description Of Construction Finished Weight( Price/Yd.

No. Fabrics Width Grams per (in Usd)
square
meter)
Different types
construction
142 100% cotton twill 2016/12064 58/59 254 2.10
pigment blotch on
contrast solid
143 100% cotton 5/1 2016/13570 58/59 275 2.35
satin twill
144 97% cotton 3% 2020+70D/12843 58/59 236 2.75
lycra 2/1 twill
145 100% cotton ribs 2016/11466 58/59 240 2.50
dobby pig blotch
on contrast
146 100% cotton twill 2012/12064 58/59 185 2.25
147 100% cotton twill 3020/15060 58/59 185 2.10
148 97% cotton 3% 3040+40D/13372 58/59 175 2.15
lycra 2/1 stretch
twill
149 100% cotton 3030/12860 58/59 175 2.10
canvas
150 100% cotton twill 30/216+70D/10048 58/59 250 2.95
151 100% cotton poplin 36/224/2/11457 58/59 300 2.75
pigment blotch on
contrast solid
152 97 % cotton 3% 4040/12872 58/59 123 1.80

Page no. 20
 lycra stretch poplin
153 100% cotton 4040+40D/13372 58/59 175 2.35
oxford
154 100% cotton rib 4030/2/10056 58/59 155 2.20
stop
155 97% cotton 3% 4012/12662 58/59 215 3.60
lycra 4/1 satin twill
156 97% cotton 3% 4040+70D/14381 58/59 190 2.45
lycra 2/1 satin twill
157 100% cotton 40/216/2/12060 58/59 275 3.05
broken twill
158 100% cotton 40/2+40/216/12066 58/59 325 2.85
ottoman canvas
159 100% cotton 40/240/2/11260 58/59 250 2.70
panama canvas
160 100% cotton 40/340/3/11050 58/59 210 2.35
canvas
161 70% cotton 30% 4516/11256 58/59 315 2.60
polyester cross
dyed oxford
162 705 cotton 30% 4545/13372 58/59 140 1.80
polyester blended
poplin
163 T/C (65/35 blend) 45/245/2/10055 58/59 115 1.55
canvas
164 CVC seer 4545+40D/2064 58/59 175 1.10
sucker(60% cotton
38% polyester 2%
lycra)
165 97% cotton 3% 5040+40D/14872 58/59 180 2.35
lycra stretch poplin
166 100% cotton 60/320/12050 58/59 165 2.50
canvas

Page no. 21
 CHAPTER-3
EXPERIMENTAL PROCEDURE

Page no. 22
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.

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. 23
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 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. 24
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) 6060/1414

Let us consider,

Warp crimp= 5 %
Weft crimp=5 %
Fabric wastage=3 %

We consider Woven Cotton Carded Yarn: Yarn Price Status May,2010 in $

16K 100% Cotton 3.20-3.25

20K 100% Cotton 3.25-3.30
30K 100% 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 $

Page no. 25
We collect recent yarn market price for 14 Ne 3.25
Making charge 0.45 $
Then finally 6060/1414 fabric price is 1.98 $.

Sample No 2

100% cotton sheeting 6060/1616

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 is 3.25 $

Making charge 0.45 $

Then finally 6060/1616 fabric price is 1.796 $.

Page no. 26
Sample No3
100% cotton sheeting 6060/2020

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 is 3.30 $

Making charge 0.45 $

Then finally 6060/2020 fabric price is 1.542 $.

Sample No 4
100% cotton sheeting 6868/3030

Weight of warp

Weight of warp= 56.806 gm. = 0.125 lb

Price of warp yarn= 0.125 *3.55 $

= 0.444$

Page no. 27
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 is 3.55 $

Making charge 0.45 $

Then finally 6868/3030 fabric price is 1.338 $.

Page no. 28
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=2020/6056

Grey width=64

Warp 20 Ne
Warp
Weft 20 Ne Price 500
Weft
Ends 60 Price 500
Picks 56
Per
Width 64 inch Per Yard Meter

=(Warp price
warp wt of
1 yd of
Warp fabrics)/10
Width 1.7777778 yds Cost 13.04 14.27
=Weft price
weft wt of 1
yd of
Weft fabrics)/10
Weave 1/1 Cost =11.92 13.03
Warp
Contraction 10.0% 24.96 27.30
Weft
Contraction 5.0%

Page no. 29
Warp
Wastage 3.0%
Weft
Westage 5.6%
B-grade 1.0%

Total warps = Ends width =3,840

Warp Count 20
Length of 1 = warp count 840
lb of warp =16,800
(1/Length of 1 lb of
Weight of 1 warp)
yard of warp = (1/16800) = 0.00 Lbs
= ( Total warp/ weight
Weight of 1 of 1 yard warp)
yard of all =(3840/16800)
warps =0.23 Lbs
=(Weight of 1 yard of
all warps(1+ Warp
Contraction+ Warp
Wastage)(1- B grade)
Warp wt of 1 = 0.23(1+
yard of 0.10+0.03)(1- 0.01)
fabric =0.26 Lbs

Weft Count 20
= (Weft count840)
Length of 1 =(20840)
lb of weft 16,800
=(1/Length of 1 lb of
weft)
Weight of 1 = (1/16800)
yard of weft =0.00 Lbs
Wt of 1 pick
adjusted for =(Weight of 1 yard of
waste & B- weft(1+ Weft
grade Contraction+ Weft Lbs

Page no. 30
 Wastage)(1- B
grade)width

0.00
Weight of =Wt of 1 pick adjusted
picks in one for waste & B-grade
linear inch of picks
fabric =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 2020/6056 38.438
100%cotton Sheeting(calico) 6060/1414 38.438
100% cotton sheeting 6060/1616 45.02
100% cotton sheeting 2020/6060 36.65
100% cotton Poplin 11060/2020 52.08
100% cotton Poplin 10272/2424 44.36
100% cotton heavy Poplin 12478/3030 41.22
100% cotton Poplin 12872/4040 30.63
100% cotton Poplin 14672/4040 33.40
100% cotton Poplin 14851/5050 34.43
100 % cotton Oxford (2/2 matt) 4030/9876 20.44
100 % cotton cellular poplin 4040/12881 29.42

Page no. 31
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 yards/lb
1.8 $/lb
Results:
Width at the reed: 71.605 Inches

Page no. 32
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 yards/lb
1.8 $/lb

Results:
Length of one warp: 5000031 Inch
Number of warp threads (ends): 9523
Total yarn length needed (warp): 1322647089.25 1209428498.4
yards 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. 33
3.5 Cost calculated using strategy adopted local fabric manufacturing
company.

GSM of Fabric
Fabric Price in tk construction Fabric name
100% cotton sheeting
214.8154 132.66 6060/1414 (calico)
187.9635 120.33 6060/1616 100% cotton sheeting
150.3708 103.31 6060/2020 100% cotton sheeting
113.6135 89.64 6868/3030 100% cotton sheeting

GSM VS PRICE

140
120
100
Price in tk

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

Fig-1: Effect on GSM in Fabric price

GSM of Fabric
Fabric Price in tk construction Fabric name
213.01 133.84 11060/2020 100% cotton Poplin
12468/3030 100% cotton heavy
160.38 114.11 Poplin
10081/3030 100% cotton heavy
151.19 109.35 Poplin
137.83 100.188 10272/2424 100% cotton Poplin

Page no. 34
 GSM VS PRICE

160
140
120
Price in tk

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

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 Price Fabric

Fabric in tk construction Fabric name
100% cotton sheeting
214.8154 110.55 6060/1414 (calico)
187.9635 107.2 6060/1616 100% cotton sheeting
150.3708 90.45 6060/2020 100% cotton sheeting
113.6135 83.75 6868/3030 100% cotton sheeting

GSM VS PRICE

120

100
PRICE IN TK.

80

60

40

20

0
0 50 100 150 200 250
GSM

Fig-3: Effect on GSM in Fabric price

Page no. 35
GSM of Fabric
Fabric Price in tk construction Fabric name
213.01 117.25 11060/2020 100% cotton Poplin
12468/3030 100% cotton heavy
160.38 123.95 Poplin
10081/3030 100% cotton heavy
151.19 120.6 Poplin
137.83 120.6 10272/2424 100% cotton Poplin

GSM VS PRICE

125
124
123
122
Price in tk

121
120
119
118
117
116
0 50 100 150 200 250
GSM

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 tk construction Fabric name
100% cotton sheeting
214.8153971 42.4 6060/1414 (calico)
187.9634725 42.24 6060/1616 100% cotton sheeting
150.370778 49.24 6060/2020 100% cotton sheeting
113.6134767 29.76 6868/3030 100% cotton sheeting

Page no. 36
 GSM VS PRICE

60

50

40
Price in tk

30

20

10

0
0 50 100 150 200 250
GSM

Fig-5: Effect on GSM in Fabric price

GSM of Price in Fabric

Fabric tk construction Fabric name
213.01 56 11060/2020 100% cotton Poplin
12468/3030 100% cotton heavy
160.38 42.15 Poplin
10081/3030 100% cotton heavy
151.19 39.65 Poplin
137.83 47.69 10272/2424 100% cotton Poplin

GSM VS PRICE

60

50

40
Price in tk

30

20

10

0
0 50 100 150 200 250
GSM

Fig-6: Effect on GSM in Fabric price

Page no. 37
CHAPTER-4
DISCUSSION

Page no. 38
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

140
120
100
Price in tk

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

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. 39
 CHAPTER-5
CONCLUSION

Page no. 40
5. 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.

Page no. 41
 CHAPTER-6
REFERENCES

Page no. 42
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. 43