Process Flow Chart of Textile Manufacturing

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 Engineering, Specifications and Production data processes
Specifications may also refer to technical standards, which may be developed by any of various kin
organizations, both public and private. It is common for one organization to refer to (reference, call out, ci
standards of another.
The word specification is defined as "to state explicitly or in detail" or "to be specific". A specification may ref
type of technical standard
A requirement specification is a set of documented requirements to be satisfied by a material, design, prod
service.
A functional specification is closely related to the requirement specification. A design or product specificatio
describes the features of the solutions for the Requirement Specification, referring to the designed solution or fi
produced solution. Sometimes the term specification is here used in connection with a data sheet (or spec sheet)
data sheet describes the technical characteristics of an item or product as designed and/or produced. It can be
published by a manufacturer to help people choose products or to help use the products. A data sheet is not a tec
specification as described in this article.
Uses of specifications
In engineering, manufacturing, and business, it is vital for suppliers, purchasers, and users of materials, products
services to understand and agree upon all requirements. A specification is a type of a standard which is often

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referenced by a contract or procurement document. It provides the necessary details about the specific requireme
PREPARE SCHEDULE FOR PRODUCTION OF COMPONENT/ PART
Schedule of production
 Deals with the timing of operations
 Specifies when resources are needed to produce a product or provide a service
 Helps us decide what order to perform jobs
 All organizations perform scheduling to some extent…
 Determine the order jobs are processed by a resource
Production planning
Production plans and work schedules are important planning tools in batch and mass production. The productio
should set out information about all the stages of production, so that every product is made to the same quality
production plan should include the following stages:
The preparation stage details the amount of materials to buy-in, preparation of garment patterns, templates a
plans. The processing stage details the fabric spreading, cutting, labelling and bundling of the fabric pieces
assembly stage contains instructions for fusing, joining and pressing the separate product parts. The finishing
gives instructions for decorative/functional finishing and final pressing. The packaging stage explains how to
hang, fold, and cover the product ready for transport to the retailer.
Scheduling (production processes)
Scheduling is the process of arranging, controlling and optimizing work and workloads in a production process
manufacturing process. Scheduling is used to allocate plant and machinery resources, plan human resources, pla
production processes and purchase materials.
It is an important tool for manufacturing and engineering, where it can have a major impact on the productivity
process. In manufacturing, the purpose of scheduling is to minimize the production time and costs, by telling a
production facility when to make, with which staff, and on which equipment. Production scheduling aims to ma
the efficiency of the operation and reduce costs.
The benefits of production scheduling include:
 Process change-over reduction
 Inventory reduction, leveling
 Reduced scheduling effort
 Increased production efficiency
 Labor load leveling
 Accurate delivery date quotes
 Real time information
Key concepts in scheduling
A key character of scheduling is the productivity, the relation between quantity of inputs and quantity of output.
concepts here are:
Inputs: Inputs are plant, labor, materials, tooling, energy and a clean environment.
Outputs: Outputs are the products produced in factories either for other factories or for the end buyer. The exten
which any one product is produced within any one factory is governed by transaction cost.

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 Output within the factory: The output of any one work area within the factory is an input to the next work area
that factory according to the manufacturing process.
Output for the next factory: By way of example, the output of a paper mill is an input to a print factory. The o
of a petrochemicals plant is an input to an asphalt plant, a cosmetics factory and a plastics factory.
Output for the end buyer: Factory output goes to the consumer via a service business such as a retailer or an a
paving company.
Resource allocation: Resource allocation is assigning inputs to produce output. The aim is to maximize output
given inputs or to minimize quantity of inputs to produce required output.
Production schedule sample
Machin Machin Machine Working Machin Daily Total Star Star Finis Finis
e code e productio days for e productio productio t t h h
Lunc n each workin n volume n volume dat tim date time
down h capacity machine g HRS of each in meter e e
time in time (m/hrs) considerin in a day machine
24 hrs g down in meter
time

WM1 7 1 350 3.75

WM2 6 1 200 5

WM3 4 1 200 5

WM4 8 1 200 7

WM5 9 1 300 5

Task 1:- prepare production plans/schedules of activities from receiving order to delivery
A. Fill the table to the total production volume and prepare your own detail production schedule based on the given
information

PROVIDE TECHNICAL SUPPORT TO OPERATORS

User friendly assistance for individuals having technical problems with electronic or non electronic
devices. The technical support team is composed of individuals that are familiar with the ins and outs of a
device. With this knowledge, they are able to troubleshoot most problems that a user experiences.
Information on how to reach technical support is usually provided with the packaged materials included
with a device. Technical support may be provided over the phone, through email, or with a live-chat
interface.
A technical support specialist is someone who provides assistance and technical support to either
businesses or consumers that are experiencing technical, hardware, or software issues.
Required skills of technical supporter
As well as a strong technical background, many employers would want you to be able to explain complex
information in simple, clear terms to a non-IT personnel. Additionally, they will be looking for:
 An ability to assess each customer/employee's knowledge levels

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  Ability to deal with difficult callers
 Logical thinker
 Good analytical and problem solving skills
 Up-to-date technical knowledge
 An in depth understanding of the field of specialization and equipment your
 customers/employees are using
 Good interpersonal and customer care skills
 Good accurate records keeping abilities
As a supervisor what are technical support you give operator?
 Fill skill gap
 machine operation
 Share technical knowledge
As a supervisor what operational controls that you will take to improve the productivity?
 Receive order or sample

 Understand the design

 Determine the raw material

 Prepare the machine and inform to the operator

 Start the production process

 Control the process

 Check the quality of the product

 Finish the order

Count conversion
Fines determines how many fibers are present in the cross section of yarn of a given thickness
By yarn count, we want to have a numerical expression which defines its fineness
1. Direct system:- The linear density is expressed directly mass per unit length
Tex= mass (gram) *1000
Length (meter)
Denier= mass (gram) *9000
Length (meter)
2. Indirect system:- the count is expressed indirectly as length per unit mass
NM (Metric) = Length (meter)
Mass (gram)
Ne (English) = Length (meter)*1.0493*453.6
Mass (gram)*840
The linear density is defined as the mass per unit length. In System International (SI) units, the
mass is in grams, and the unit length is meters.
Direct system: This expresses the count as the mass of a standard length. The mass is measured
in grams, and the specific length is either 1 km for Tex and 9 km for denier.
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Indirect system: This gives the length that weighs a standard mass. The standard mass is either 1
kg for metric count or 1 lb for English count, and the associated length is, respectively, in meters
or yards respectively.

Production of Winding Machines

The production of winding machine is determined by the weight of the yarn wound in a certain
period of time.
Types of productivity calculations
 Theoretical production
 Actual production
1. Theoretical production (Pth) of winding machine
A. The theoretical production (Pth) of one spindle (winding head) can be

Pth =V ×t × T ×10−6 ( for one winding head/ unit) [Kg/hr]

Where: V= Average winding speed (m/min)
t = Rated working time (min)
T = Linear density of yarn (Tex)
B. The theoretical production (Pth) of one winding machine can be
Pth =V ×t × T ×n×10−6
Where;- n= Number of spindles on the machine
C. The theoretical production (Pth) of many winding machine can be
Pth =V ×t × T ×n×m×10−6
where:- m= number of winding machines
1. The actual production (Pac) of winding machine

A. The actual production (Pac) of one spindle or winding head

Pac = V ×t × T ×ε×10−6 or Pth × ε [Kg/hr]

Where: ε=Machine efficiency

B. The actual production (Pac) of one winding machine
Pac = V ×t × T ×n×ε×10−6

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 C. The actual production (Pac) of many winding machines
Pac = V ×t × T ×n×m×ε×10−6
Pb#1 An automatic winding machine which has 50 spindles runs at an average speed of 1000
m/min with an efficiency of 0.8 processing a 20 tex yarn.
(a) Calculate the actual production of the machine per shift of 8 hours
(b) How many packages of cones will be produced per day if the weight of each package be 2.5
kg?
(c) What would be the average length of yarn wound on each package?
Solution
(a) Actual production per shift of 8 hours
Pa =V ×t× T ×n×ε×10−6

=1000m/ min×(8hr×60min/hr)×20tex×50×0.8×10−6
=384kg/ shift

(b) Total number of packages produced per day (N)

N= Actual production of the machine / day =384*3=461
Weight of yarn each package 2.5
(d) Length of yarn on each package (l)
L= weight of yarn on each package (g) *1000
Linear density of yarn (tex)
2500 *1000=125,000 meter
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Pb#2 An automatic winding machine which runs at an average speed of 1200 m/min with an
operation factor of 0.85 processing 30 tex of yarn, produces 2644 kg of yarn per day.
What would be the total number of spindles in the machine if all the spindles are
functioning?
Solution
The actual production of one spindle can be calculated as
Pac =V ×t × T ×ε×10−6

=1200m / min× (24hr ×60 min/ hr) ×30 tex ×0.85 ×10−6
=44.06 kg / spindle / day
Hence, the total number of spindles (n) in the machine will be
n = actual production of machine / day
Actual production of one spindle/ day
 2644 kg
44.6 kg / spindle
=60 spindles

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 Warping Machines Productivity
The productivity of warping machines can be expressed by the amount of yarn wound on a warpers
beam or a weavers beam per given time.
1. The theoretical production (Pth) of a beam warping machine can be

Pth = V × t ×T × m×10−6 [kg/hr]

Where:
V = average speed of warping machine (m/min)
t = rated time (min)
T = linear density of yarn (tex)
m= number of ends wound simultaneously onto a beam
2. The actual productivity of a beam warping machine can be

Pac = V × t ×T × m× ε ×10−6 [kg/hr]

Where: ε = machine efficiency
3. Time required to produce a full beam (tb) or each section
Tb= L
V
Where:-
L= piece length of warp in a beam

V= Average speed of warping machine

4. Number of warping beams (nb) per supply package
nb= l

L
Where: - Length of yarn on the supply package (l)

5. Calculations of Volume, weight and length of yarn

A. Volume= πh (D 2 −d 2 )

Where: - h= beam width

D= full diameter of beam

D= barrel diameter

B. Weight of yarn(G)

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 G= v×g

1000

Where:-

G=Weight of yarn in kg

V=volume

g = winding density (gm/cm)

C. Length of yarn sheet/piece length(L)

L= G×106
Tex × m
Where:-
G=Weight of yarn in kg

Tex= linear density of yarn

M=total number of ends

D. Length of total ends(l)

l = G×106
Tex
Pb #1. Suppose the following parameters are given:
1. Average speed of warping machine (V)= 750 m/min
2. Length of yarn on the supply package (l) = 90,000 m
3. The piece length of warp on a beam (L) = 18,000 m
4. Number of ends in a beam (m) = 400
5. Linear density of yarn (Nm) = 20
6. Working time (t) = 8 hours
7. Ideal time of the machine (ts)= 2 hours
Calculate
(a) The actual productivity of the machine
(b) The time required to produce a full beam
(c) Number of warpers beam obtained per supply package
Solution
 Conversion of the linear density of yarn in to tex system
Tex =1000 = 1000 = 50 tex
NM 20
 Conversion of working time
t = 8hr × 60min/ hr = 480min

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  Determination of machine efficiency
E= gross time- idle time ×100
Gross time
E= 8-2 ×100 =75%
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(a) Actual productivity of warping machine (P)
Pac = V × t ×T × m× ε ×10−6 [kg/hr

=750m / min×480 min×50tex ×400×0.75×10−6

=5,400 kg / shift
(b) The time required for a full beam
tb
L 18000 m
= = 750 m / =24 min
V min

(c) Number of beams produced per supply package

n =l
b L

90,000 = 5beams
18,000
Sizing Parameters
The sizing parameters includes
 Size concentration
 Size pick up (wet take up)
 Size used
 Solid used
 Percent of size
 Weight of sized yarn
1. Concentration %= weight of sized powder(kg) × 100
Final volume of size solution
2. Size used = amount of size solution in storage tank before trial - amount of size solution
in storage tank after trial
3. Solid used = Concentration % × Size used
4. Percent of size = Solid used × 100
Weight of sized yarn
5. Weight of sized yarn = L× Tex× m×10−6 (kg)
6. Size pick up (wet take up) = Percent of size on yarn × 100
Concentration %

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Pb ≠1. Sizing machine in BDTSC operates with the following parameters. The size solids to
prepare the size solution also stated.
Winding density (g) =0.8 g/cm3
Linear density=50 Nm
Sized beam width=10 cm
Diameter of full sized beam=90 cm
Winding thickness= 25 cm
Operative time=8 hrs
Speed of sizing machine 50m/min
Type of chemical Weight in kilogram
PVA 0.5 kg
Inset 48 kg
Wax 0.5 kg
Gum 1kg
Total 50 kg= weight of size
Amount of size before trial 600 litter
Amount of size after trial 400 litter
Calculate
A. Size used
B. Solid used
C. Concentration % of size paste
D. Percent of size on yarn
E. Size pick up (wet take up
Solution
A. Size used = amount of size solution in storage tank before trial - amount of size solution
in storage tank after trial
=600 litter – 400 litter
= 200 litter
B. Solid used = Concentration % × Size used
= 8.33 % × 200 litter
=16.66 kg
C. Concentration %= weight of sized powder(kg) × 100
Final volume of size solution
=50 kg × 100
600
=8.33 %
D. Percent of size = Solid used × 100
Weight of sized yarn
= Solid used × 100

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 L× Tex× m×10−6
= 16.66 kg × 100 = 128.15 π
13π
E. Size pick up (wet take up) = Percent of size on yarn × 100
Concentration %
= 128.15 π × 100
8.33
= 153.841 π
Sizing Machine Productivity
The sizing speed (V) for cotton yarn can be determined as
C ×106
V = a ×m×T ×60

Where:

V = Linear speed of sizing, m/min

C = Amount of moisture evaporated in the drying section, kg/hr
a = Ratio of moisture weight to yarn weight m = Total number of ends
T = Linear density, Tex
Hence the actual productivity of the sizing machine (P) can be

P= V ×m ×6t ×T ×ε= C ×ε
10 a
Loom productivity
RPM (revolution per minute)
PPM (picks per minute)
N = RPM of motor
D1 = diameter of pulley
D2 = diameter of main shaft
Always RPM = PPM
RPM of main shaft= n×D1/D2
1. Productivity by picks = PPM × time(minute)
Example: PPM= 200, time = 1hrs
Productivity = 200 × 60 =1200 picks
2. Productivity by meter = PPM × time(minute)
Pick density (meter)
Example: RPM =300, time = 1hrs, picks density= 20 picks/cm
Productivity = 300 × 60 = 9 meter

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 2000
3. Productivity by square meter = PPM × time(minute) × width of fabric(meter)
Pick density (meter)
Example: PPM= 400, time = 1hrs, picks density = 30 p/cm, width 1.5 meter
Productivity = 400 × 60 × 1.5
3000
Productivity = 12 meter square
Average productivity of looms
Types of loom No of looms RPM Pick density Efficiency
(picks/cm)
sulzer 20 200 20 70%
somet 30 300 30 80%
ppicanol 50 400 40 90%
1. Average RPM = (20 × 200) + (30 × 300) + (50 × 400)
100
Average RPM=330
2. Average picks density = (20 × 20) + (30 × 30) + (50 × 40)
100
Average picks density = 33
3. Average efficiency = 20 × 70) + (30 × 80) + (50 × 90)
100
Average efficiency = 83
4. Average actual production = Average RPM × time (minute) × Average efficiency
Average picks density

Measurement of Fabric Structural Parameters

1. Fabric count (threads per inch)
It is measured at 5 different places in laboratory sample.
Averages are normally reported nearest to individual yarns per inch.
One method: Raveling the yarn and counting in a unit length of fabric.when fabric contains
lower than 25 yarns per inch; the yarns in 3 inch of fabric length/width are counted instead. For
compact fabric one can ravel out and count one by one, the yarns in one inch. For fancy weaves
counts should include at least on full repeat of each design component of the weave
Another method: the use of glass (use of a pick glass) or other transparent material with ruled
lines.
Warp count (EPI) is controlled by the spacing of ends drawn in through the heedless and reed.
Weft count (PPI) can be varied by controlling the warp let-off and fabric take up.
2. Fabric length

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 It should be measured parallel to the selvage while the fabric is under zero tension and is free of
folds or wrinkles.
Measurement of fabric dimension should be made in a standard testing atmosphere whenever
possible, since humidity may affect the results. A table wide enough to accommodate the open
fabric width is preferred and with one edge graduated.
3. Fabric width
For a full roll, 5 measurements of width should be taken randomly along the length to the nearest
1/16th of an inch.
The width of the fabric, when it is removed from the loom, may not be the same when it finally
reaches the customer.
The loom state fabric may undergo or deals by water, heat, pressure, tension, acids and alkalis.
Some processes cause contraction in width (wet treatment) and some may stretch the cloth
(stentering).
4. Fabric weight per unit area and per unit length
The weight of a fabric can be described as the weight per unit area or the weight per unit length.
The former is self explanatory but the latter requires a little explanation because the weight of a
unit length of fabric will obviously be affected by its width.
Weight per unit area: the method of obtaining this value is implicit in the little; one has merely
to weigh a known area and divide the weight by the area. The actual determination is not so
straight forward since sampling, marking out, cutting, accuracy of weighing, and moisture
content must all be considered. Area measurement and cutting should be to on accuracy of 1 %
and for an area less than 100 in2 a cutting die or template is recommended.
1. GSM = weight (gm) * 104
Area (cm2)
GSM of fabric = GSM of Warp+ GSM of weft
GSM of warp = EPCx100 (1 + C %) Tex/1000
GSM of weft = PPC x 100 (1 + C %) Tex/1000
5. Fabric Thickness
Essentially the determination of the thickness of a compressive material such as a textile fabric
consists of the precise measurement of the distance between two parallel plane plates when they
are separated the close, a known arbitrary pressure between the plates being applied and
maintained. It is convenient to regard one of the plates as the presses foot and the other as the
anvil.
6. Weave
It refers to the arrangement of warp and weft in the fabric. The minimum weave pattern is called
a repeat. a) Plain weave b) Twill weaves c) satin/sateen weave
7. Cover Factor and Crimp of Fabrics
Fabric Cover Factor
It is defined as the area covered by yarn when compared with the total area covered by the fabric.
Fabric cover is a measure of open spaces between yarns.
Now let as calculate the cover of fabric as follows:
First let us calculate the fractional cover of warp and weft yarns. The warp cover factor can be
found by using the formula. k1= (n1 x N1)/10

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Where n1 = Ends/cm N1 = Count of warp in tex Similarly the weft cover factor can be found by
the formula
k2 = (n2 x N2) /10 so the total cover factor is K = K1 + K2
Thus with fabric (30×24; 12 Tex×15 tex) the values are k1= (30 x 12)/10 = 10.39
k2 = (24 x 15)/10 = 9.30 K = K1+K2 = 10.39+9.30 = 19.69
Crimp Purpose: To measure the crimp percentage in warp and weft of a given fabric.
The standardized tensions recommended in the B.S. Handbook are given below:
we can calculate the crimp percentage with the following formula:
C=(l-p)/p*100% where, c=crimp, l=un crimped length and p=crimped length.
Fabric Pilling Resistance testing
1. Purpose and Scope
This test is used to cover the resistance to the formation of pills and other related surface changes on the
textile fabrics using the random tumble pilling tester. The procedure is generally applicable to all types of
woven and knitted fabrics.
The results obtained with this test method depend on the resistance to form pill of the fibers, yarns and
finishes on the fabric, and upon the construction of the fabric.
2. Principle
Textile samples are placed into the random tumble pill tester for a specified amount of time and tumbled.
The samples are then evaluated for the degree of pilling.
3. Terminology
Pilling, the tendency of fibers to work loose from a surface and form balled or matted particles
that remain attached to the surface of the fabric.
Abrasion Resistance of Fabrics
1. Purpose and Scope
This test method is intended for evaluating the resistance of fabrics and other flexible materials to
abrasion.
2. Principle
An unfettered fabric specimen is driven by an impeller (rotor) along a zigzag course in a generally
circular orbit within a cylindrical chamber, so that it repeatedly impinges on the walls and abradant liner
of the chamber while at the same time being continually subjected to extremely rapid, high velocity
impacts. The specimen is subjected to flexing, rubbing, shock, compression, stretching and other
mechanical forces during the test. Abrasion is produced throughout the specimen by rubbing of yarn
against yarn, fiber against fiber, surface against surface and surface against abradant.
Evaluation is made on the basis of weight loss of the specimen or grab strength loss of the (woven)
specimen when broken at an abraded fold line. Generally, flat woven fabrics may be evaluated by either
method. Tufted and other fabrics with raised surfaces, and knit fabrics, are evaluated by the weight loss
method.
Terminology
Abrasion: the wearing away of any part of a material by rubbing against another surface.
Drape
Purpose and Scope
This test is used for the indication of garment appearance properties when fabric orients itself into
folds in more than one plane under its own weight. The procedure is generally applicable to all types
of woven and knitted fabrics.
The results obtained with this test method depend on the type of the fibers, yarns and finishes on the
fabric, and upon the construction of the fabric.

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2. Principle
The samples were positioned over a horizontally placed circular rigid disk of 18 centimeters in
diameter. The fabric deforms into series of folds around the disk. The
paper ring containing the shadow image of the draped configuration represents the weight w1. The
shadow image cut from the paper ring is weighed and marked as w2.
The drape coefficient was calculated by equation:

Terminology
drape, “the extent to which a fabric will deform when it is allowed to hang under its own
weight”
The Drape Coefficient has been defined as 'the percentage of the area of the annular ring of
fabric obtained by vertically projecting the shadow of the draped specimen'
Digital balance, Scissors
Textile product development
Introduction to new product development
New product development refers to original products product improvements product
modifications and new brand developed from the company’s research and development.
A new product development process consists of activities carried out by companies when
developing and launching new products.
A company can obtain new products from
1. Acquisition: buying the whole company patent or license, products someone else
products
2. New product development
The new product development process differs from industry to industry and firm to firm.
Indeed it should to adapt to each firm in order to meet specific company resource and needs
New product development stages
1. Idea generation: new idea generation is a systematic search for new product ideas.
Sources of new product ideas are internal and external sources.
Internal sources: a company formal research and development, staff, management, etc
External sources: sources outside the company like customer, competitor, supplier,
distributor, outside design firms.
2. Idea screening: refers to reviewing new product ideas in order to drop poor ones as
soon as possible. This stage is the process of checking feasibility.
3. Concept development and testing:

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 Product idea is an idea for a possible product that the company can see itself offering to
the market.
Product concept: is a detail version of the idea stated in meaning full customer term.
Concept testing: refers to reviewing new product concepts with group of targeted
customers.
4. Marketing strategy development:
Market: it is an arrangement to an opportunity to exchange goods.
Marketing: the sum total of those activities that are related to the flowing of goods
from production to consumption.
Marketing is a broader concept derived from the customers demand. Generally
marketing is promoting of images and products, selecting and sourcing potential
customers or consumers.
Selling: is one part of marketing which deals with persuading customers to buy
products that are available with seller
Merchandizing: is a process of offering a variety of products to a retail consumer in a manner
which is stimulating demand.
General strategic marketing approaches
1. Cost leadership approach
2. Differentiation approach
3. Focus marketing approach
Marketing strategy development refers to the initial marketing strategy for introducing the
product to the market.
Marketing strategy statement consists of three parts
Part I: description of the target market. Product positioning, sales, market share and profit
goals.
Part II: price, distribution, budget
Part III: long term sales, marketing mix strategy
5. Business analysis:
It is a process of reviewing the sales, costs and profit projection to find out whether they satisfy
the company’s objectives.
6. Product development
Involves the creation and testing of one or more physical versions by the research and
development or engineering departments.
This process increases the investment cost because there is failures is happen
7. Test marketing
It is an experimental procedure that provides an opportunity to test a new product or a new
marketing plan under realistic market conditions.

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Test marketing is an experiment conducted in a field laboratory ( the test marketing)
comprising of actual stores and real life buying situations, where the buyers are un aware of
participation.
Test marketing can be used by a business to evaluate factors like
 Performance of the product
 Customer satisfaction
 The required level of material support for full launch
 Distribution requirement for new launch
Test marketing can last from few weeks to several months.
When does a firm test a market?
 New products with large investment
 Un certainty about product/ marketing program
When firms might not test a market?
 When the products are simple line extension, copy of compotators product, low cost,
management confidence.
Approaches to test marketing
1. Standard test market
2. Controlled test market
3. Simulated test market
8. The commercialization process:
Commercialization of product will only take place if the following questions can be
answered.
1. When: when the company has to decide an introduction timing
2. Where: where the company decide to launch its production
3. Whom: to whom the primary target customer group will have been identified earlier by
research and test marketing
The commercialization action plan should contain:
 Marketing mix
 7Ps: product, place, price, promotion, people, process, physical environment
 Product pre launch planning and preparation
 Budgeting
 Managing the product launch and post launch management
Reasons for new product failure
 Over estimation of market size
 Poor design
 In correct positioning
 In effective promotion
 Management influence

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  Wrong timing
 Priced to high
 Competition
 High development cost
Successful product design and development program should be:
 Customer centered
 Team centered
 Systematic
 Sequential
Characteristics of successful product development program
There are five Characteristics of successful product development program. These are
1. Product quality 2. Product cost 3. Development time
4. Development cost 5. Development capability
DESIGN BRIEF
Design brief is a written document for a design project developed by a person or team (the
'designer' or 'design team') in consultation with the 'client'. They outline the deliverables and
scope of the project including any products or works (function and aesthetics), timing and
budget.
A comprehensive, detailed brief becomes the guiding document for the entire design process, and
spells out exactly what you, as the designer, need to do, and the constraints within which you
need to do it.
In this article we’ll examine the basics needed for a great design brief which should help ease
your design work and avoid any problems with your clients.
Here are the essential elements of a good design brief:
1. Objectives and goals of the new design
2. Budget and schedule
3. Target audience
4. Scope of the project
5. Available materials/required materials
6. Overall style/look
7. Any definite “Do nots”
Basic Elements of Design
 Following are the seven basic elements of design which are common throughout the field
of designing.
1. Point / Mark
2. Line
3. Shape
4. Forms
5. Space
6. Color
7. Texture

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PRODUCT CHARACTERISTICS
Product characteristics
 A product with good quality is subjective in nature, in that ,a product with good quality
for one person or group of customers might not be of a good quality for other
customers or group of customers.
 To resolve this 8 dimensions/ characteristics has been selected and defined to
characterize a given product as a quality good.
 These eight dimensions can be used at a strategic level to analyse quality characteristics.
The concept was defined by David Garvin, a professor at Harvard University, department of
business management
8 DIMENSIONS
1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived Quality
1. Performance
 Performance refers to a product's primary operating characteristics.
 This dimension of quality involves measurable attributes; brands can usually be ranked
objectively on individual aspects of performance.

 For example for an automobile the performance characteristics include: speed,

acceleration, engine& comfort.

 For a television performance means: sound and picture clarity, colour.

 For a clothing performance means: Tensile strength, GSM, Seam strength.

2. FEATURES
 Features are additional characteristics that enhance the appeal of the product or service
to the user.

 These are characteristics that supplement the basic functioning.

 Examples include free drinks on airplanes, automatic tuning for televisions, safety
pockets for clothing's……

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 In some cases the customer might want to customize their products after purchases.

3. CONFORMANCE
Conformance is the precision with which the product or service meets the specified standards.
The degree to which the product’s design and operating characteristics meet established
standards.
All products and services involve specifications of some sort.
When new designs and models are developed, dimensions are set for parts and purity
standards for materials.
These specifications are normally expressed as targets or “center", deviance from the target is
allowed within a specified range.
Because this approach to performance equates good quality as operating inside the tolerance
band/range, there is little interest whether specification has been met exactly.
For the most part, dispersion with in the limits is ignored.
One drawback of these approach is the so called “tolerance stack-up”.
A case when two or parts are to be fitted and one is manufactured with lower tolerance limit
and the other being manufactured with the upper tolerance limit and the two parts are not able
to fit.
A possible solution for the above problem is the ”taguch’s loss function", where the major
principle being manufacturing to the target not around the target.
Deviation from the target is a loss and it aims at preventing failures from reaching the
customers hand
4. DURABILITY
Durability measures the length of a product’s life.
The amount of use one gets from a product before it physically deteriorates or until
replacement is preferable
Durability has two dimensions, technical and economical.
Technically durability can be defined as the amount of use one gets from a product before it
deteriorates.
Economically durability can be defined as the amount of use one can get from a product before
it breaks down and replacement is preferable to continued repair.
An example for this is after a long period of service the string of a light bulb burns and it cannot
be repaired, unless it is replaced with a new one .
So investments on replacement and repair costs should be considered when
designing a new product or model.
5. SERVICEABILITY
Serviceability is the speed with which the product can be put into service when it breaks down,
as well as the competence and the behaviour of the serviceperson.

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Speed, courtesy ,competency and ease of repair.
6. AESTHETICS
Aesthetics is the human perception of beauty, including sight, sound, smell, touch, taste, and
movement.
7. Reliability
This dimension reflects the probability of a product malfunctioning or failing with in which a
specified time period.
Among the most common measures of reliability are the mean time to first failure, the mean
time between failures and the failure rate per unit time.
It is the most important characteristics to consumers as downtime and maintenance become
more expensive.
8. Perceived quality
Perceived Quality is the quality attributed to a good or service based on indirect measures.
Subjective assessment resulting from image, advertising, or brand name.
In such circumstances ,images, advertising and brand names –inferences about quality rather
than the reality itself-can be critical.
Reputation is the primary stuff of perceived quality.
Production design aspects and Tools for product development
The purpose of any organization is to provide products and services to its customers.
But the success of the product or service depends on its acceptance on the market.
Therefore products that satisfy the needs of the customer must be designed, while maintaining
quality. This will ensure long-term success of the organization.
The design process primarily depends on the relationship between the marketing, design and
operations functions of the organization for its success.
The cooperation of these functions should facilitate identification of customer needs,
production of a cost-effective and quality design, which meets customer needs.
Roles of the functions
Marketing function
 Evaluate consumer needs through market research.
 Provision of a demand forecast in the market, while taking into account the external
environment.
 Understanding the attributes of the product/service life cycle.
Engineering
 Carrying out product/service design and re-engineering
Operations
 Production of the good or service as designed using the specified processes
 Ensuring efficient levels of supply while delivering a high quality product.

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 Product Design
An effective design process:
 Matches product or service characteristics with customer requirements
 Ensures that customer requirements are met in the simplest and least costly manner
 Reduces the time required to design a new product or service
 Minimizes the revisions necessary to make a design workable.
Specifies which materials are to be used; it determines the dimensions and tolerances, the
appearance of the product, and sets standards for performance.
Quality control
 Requirements of quality improvement system.
In business, engineering and manufacturing, quality has an interpretation as the non-inferiority
or superiority of something; it is also defined as fitness for purpose. Quality is a perceptual,
conditional, and somewhat subjective attribute and may be understood differently by different
people. Consumers may focus on the specification quality of a product/service, or how it
compares to competitors in the marketplace. Producers might measure the conformance quality,
or degree to which the product/service was produced correctly.
Support personnel may measure quality in the degree that a product is reliable,
maintainable, or sustainable. A quality item (an item that has quality) has the ability to perform
satisfactorily in service and is suitable for its intended purpose.
Quality improvement system comprising some or all of the following elements:
 Quality assurance
 Quality control
 Quality inspection
 Quality improvement
 Total quality control
Quality terms
 quality assurance – planning to meet customers’ requirements
 quality control – checks and procedures to ensure customer requirements are met
 quality inspection – inspecting and testing products and services
 total quality control – a company-wide approach that combines both quality assurance
and quality control so that the customer is always satisfied
Benefits of good quality:
 quality products
 reduced costs
 customer confidence, satisfaction and loyalty
 good reputation
 job satisfaction
 increased competitiveness
 keeping up with technology
Costs and consequences of poor quality
 lost customers, accidents, wastage, lost time, low morale and conflict

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 Quality improvement procedures
 Four steps of the quality cycle: plan, do, check, act
 Reasons for following process improvement procedures
Quality assurance (QA) is a way of preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services to customers; which ISO
9000 defines as "part of quality management focused on providing confidence that quality
requirements will be fulfilled".[1] This defect prevention in quality assurance differs subtly from
defect detection and rejection in quality control, and has been referred to as a shift left as it
focuses on quality earlier in the process.[2]
The terms "quality assurance" and "quality control" are often used interchangeably to refer to
ways of ensuring the quality of a service or product.[3] For instance, the term "assurance" is
often used as follows: Implementation of inspection and structured testing as a measure of quality
assurance in a television set software project at Philips Semiconductors is described.[4] The term
"control", however, is used to describe the fifth phase of the DMAIC model. DMAIC is a
data-driven quality strategy used to improve processes.
Quality assurance comprises administrative and procedural activities implemented in a quality
system so that requirements and goals for a product, service or activity will be fulfilled.[3] It is
the systematic measurement, comparison with a standard, monitoring of processes and an
associated feedback loop that confers error prevention.[6] This can be contrasted with quality
control, which is focused on process output.
Two principles included in quality assurance are: "Fit for purpose" (the product should be
suitable for the intended purpose); and "right first time" (mistakes should be eliminated). QA
includes management of the quality of raw materials, assemblies, products and components,
services related to production, and management, production and inspection processes.
Suitable quality is determined by product users, clients or customers, not by society in general. It
is not related to cost, and adjectives or descriptors such as "high" and "poor" are not applicable.
For example, a low priced product may be viewed as having high quality because it is disposable,
whereas another may be viewed as having poor quality because it is not disposable.[citation
needed]
Total Quality Management (TQM) is a competitive approach to long-term success that's
derived from a dedication to customer satisfaction. Within this system, every employee in a
company endeavors to enhance the products, services and internal culture to produce a
streamlined set of business processes that deliver an improved customer experience.
For the overall process to be effective, there are 10 key practices management can use to
promote the culture of Total Quality Management and, in doing so, positively impact nearly
every process within an organization. These include:
 Foster a continuous drive toward improving products and services
 Stop depending upon inspection to achieve quality

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  Work with a single supplier to avoid having to award supplier contracts based on price
alone
 Commit to a continuous reevaluation of processes related to planning, production and
service to achieve improvement goals
 Provide on-the-job training to develop and retain valuable staff, including opportunities
for extensive education and self-improvement for everyone
 Remove barriers between staff areas to facilitate a free-flow of collaboration and ideas
 Get rid of any slogans, exhortations and targets aimed at employees
 Do away with numerical quotas for employees and numerical goals for management
 Eliminate the barriers that erode pride of workmanship, such as an annual evaluation or
merit-based system
 Task everyone within the organization toward achieving the transformation goals of TQM
Total Quality Management Principles: The 8 Primary Elements of TQM
Total quality management can be summarized as a management system for a customer-focused
organization that involves all employees in continual improvement. It uses strategy, data, and
effective communications to integrate the quality discipline into the culture and activities of the
organization. Many of these concepts are present in modern Quality Management Systems, the
successor to TQM. Here are the 8 principles of total quality management:
1. Customer-focused
The customer ultimately determines the level of quality. No matter what an organization does to
foster quality improvement—training employees, integrating quality into the design process,
upgrading computers or software, or buying new measuring tools—the customer determines
whether the efforts were worthwhile.
2. Total employee involvement
All employees participate in working toward common goals. Total employee commitment can
only be obtained after fear has been driven from the workplace, when empowerment has
occurred, and management has provided the proper environment. High-performance work
systems integrate continuous improvement efforts with normal business operations.
Self-managed work teams are one form of empowerment.
3. Process-centered
A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take
inputs from suppliers (internal or external) and transforms them into outputs that are delivered to
customers (again, either internal or external). The steps required to carry out the process are
defined, and performance measures are continuously monitored in order to detect unexpected
variation.
4. Integrated system
Although an organization may consist of many different functional specialties often organized
into vertically structured departments, it is the horizontal processes interconnecting these
functions that are the focus of TQM.
 Micro-processes add up to larger processes, and all processes aggregate into the business
processes required for defining and implementing strategy. Everyone must understand the

25
 vision, mission, and guiding principles as well as the quality policies, objectives, and
critical processes of the organization. Business performance must be monitored and
communicated continuously.
 An integrated business system may be modeled after the Baldrige National Quality
Program criteria and/or incorporate the ISO 9000 standards. Every organization has a
unique work culture, and it is virtually impossible to achieve excellence in its products
and services unless a good quality culture has been fostered. Thus, an integrated system
connects business improvement elements in an attempt to continually improve and exceed
the expectations of customers, employees, and other stakeholders.
5. Strategic and systematic approach
A critical part of the management of quality is the strategic and systematic approach to achieving
an organization’s vision, mission, and goals. This process, called strategic planning or strategic
management, includes the formulation of a strategic plan that integrates quality as a core
component.
6. Continual improvement
A major thrust of TQM is continual process improvement. Continual improvement drives an
organization to be both analytical and creative in finding ways to become more competitive and
more effective at meeting stakeholder expectations.
7. Fact-based decision making
In order to know how well an organization is performing, data on performance measures are
necessary. TQM requires that an organization continually collect and analyze data in order to
improve decision making accuracy, achieve consensus, and allow prediction based on past
history.
8. Communications
During times of organizational change, as well as part of day-to-day operation, effective
communications plays a large part in maintaining morale and in motivating employees at all
levels. Communications involve strategies, method, and timeliness.
Quality Assurance vs. Quality Control
Quality Assurance and Quality Control are two very closely related concepts and because of that
close relationship they are often confused and one is inappropriately used as a substitute for the
other.
Quality Assurance is a process focused concept, where the processes are put in place to ensure
the correct steps are done in the correct way. If the correct processes are in place there is some
assurance that the actual results will turn out as expected.
Quality Control is a product focussed concept, where checking of the actual results are done to
ensure that things are as expected. If the correct controls are in place you can know for certain
that the actual results have been achieved because the actual results have been checked.

Quality assurance processes are put in place to provide some comfort that the end product is what
you want. Quality control is making sure the end product really is what you want. That can still

26
be a bit confusing so this article will walk through some examples to clarify the difference
between Quality Assurance vs. Quality Control.
Manufacturing
Quality assurance and quality control are both crucial concepts in terms of manufacturing to
ensure a company's products are created effectively and in a manner they expect. If they're not
customers may be dissatisfied and business lost.
Take for example car manufacturing. Quality assurance would mean setting up the processes
necessary to prove comfort that the car is manufactured to the exact specifications you need.
Ensuring there is a process to test the alloy composition in the materials provided, a process
directing where bolts are to be inserted and tightened. Those processes would be considered
quality assurance.
Quality control would be the physical and mechanical tests that take place throughout the
process to ensure the quality assurance processes have been followed and you do in fact have the
exact car you expected. Visual inspections throughout the process, reviewing the results of the
various tests performed, these would all be quality controls performed.
An inspection is, most generally, an organized examination or formal evaluation exercise. In
engineering activities inspection involves the measurements, tests, and gauges applied to certain
characteristics in regard to an object or activity. The results are usually compared to specified
requirements and standards for determining whether the item or activity is in line with these
targets, often with a Standard Inspection Procedure in place to ensure consistent checking.
Inspections are usually non-destructive.
Inspections may be a visual inspection or involve sensing technologies such as ultrasonic testing,
accomplished with a direct physical presence or remotely such as a remote visual inspection, and
manually or automatically such as an automated optical inspection.
Sampling schemes /techniques
 Sampling schemes Agreed customer plans, Acceptable Quality Level (AQL) and
 Average Outgoing Quality Level (AOQL) plans, balanced score card (BSC), 5S, Six
Sigma Etc
 Relevant statistical information
 Average, range and process control data and the plotting of charts such as line graphs,
run charts, tally charts, histograms, control charts, random and assignable causes etc.
Interpreting Product Costs in Terms of Customer Requirements
Some Useful Definitions:
 Cost object: A cost object is anything that we want to know the cost of. We might want
to know the cost of making one unit of product, or a batch of product, or all of Tuesday’s
production, in which case the cost objects are one unit of product, a batch of product, or
Tuesday’s production, respectively.
 Product costs: A product cost is any cost that is associated with units of product for a
particular purpose.
 Inventorable costs: These are costs that are debited to inventory for either external or
internal reporting purposes. For manufacturing firms, all inventoriable costs are
manufacturing costs, but the reverse is not necessarily true.

27
  Period costs: These are costs that are expensed when incurred, usually because they are
not associated with the manufacture of products. Examples include advertising costs and
research and development costs. Period costs are distinguished from inventoriable costs.
 Direct costs and overhead costs: In relation to a given cost object, all costs are either
direct costs or overhead costs. Direct costs can be traced to the cost object in an
economically feasible way. Overhead costs (also called indirect costs) are associated
with the cost object, but cannot be traced to the cost object in an economically feasible
way.
 Cost driver: A cost driver is any factor that affects costs. A change in the cost driver will
cause a change in the total cost of a related cost object. Any one cost object almost always
has numerous cost drivers.
 Cost allocation: The assignment of overhead costs to the cost object. This term applies to
companies in all sectors of the economy and to all types of organizations.
 Cost allocation base: A quantitative characteristic shared by multiple cost objects that is
used to allocate overhead costs among the cost objects. A cost allocation base can be a
financial measure (such as the raw material cost of each unit of product) or a nonfinancial
measure (such as direct labor hours incurred in the manufacture of each unit of product).
Conversion costs: All manufacturing costs other than direct materials
Definition of Cost
Cost may be defined as the amount of expenditure incurred, or, attributable to a given thing.
Cost estimating is the process of determining the probable cost of the product before the start of
its manufacture.
Costing is the process of calculating the actual cost of the product after it has been manufactured.

The Need for Costing

Following are the main reasons why a Clothing manufacturer needs to be involved in costing
and have an understanding of the costs. It is useful if designers, pattern cutters and garment
technologists also have an understanding of the costs.
Pricing decisions. If the manufacturer produces a branded product or sells directly to the end
user of the garment. i.e. direct to the public. then it may determine the selling price of the
garment.
The most commonly used method of pricing is full-cost pricing, where a percentage profit or
markup is added to t he cost of the product. The percentage profit, or markup, may be determined
based on an agreed company policy taking in to account what the market will bear on terms of
price for that product.
Thus, to make pricing decisions the manufacturer needs to know the cost of the product.
Thus to make the acceptance decision the manufacturer needs to know the cost of the
product.
Thus, to make a viable tender the manufacturer needs to know his costs.
Acceptance decisions.

28
This is probably more common in clothing manufacture and occurs when a retailer instructs a
manufacturer to make a particular garment but is prepared to pay only a stated price.
Here, the retailer is in the driving seat in terms of fixing the price that will be paid; thus, to decide
whether to accept this work the manufacturer needs to know what it will cost him to make that
garment. This is an acceptance decision-do I take this work at this price and if I do will I make
any profit? or knowing what my costs are, do I try to renegotiate the price?
Tendering. Though this is less common in the clothing industry than in the building industry, it is
a Situation that is prevalent. Here, the customer advertises in the trade press for a manufacturer to
make a specific garment or job of garments.
The work will have to be carried out to a detailed specification and manufacturers will be invited
to submit a 'tender', i.e. a price for doing the job. The customer, subject to checking that the
manufacturer can do the job, will usually select the lowest tender.
Cost control. It is also important for manufacturers to keep control of their costs. The profit
margins in clothing manufacture tend to be rather slim: thus ensuring that excessive cost does not
erode those margins is important.
The manufacturer who does not measure his costs cannot hope to control them. Therefore,
measuring, recording and comparing costs are all part of the control process to ensure the
ongoing profitability of the business.
Profit. People are in business essentially lo make a profit. There may be other laudable reasons
for being in business- making use of one's talents, providing employment for the family. and so
forth-and small craft businesses may not always pl ace the profit motive at the top of their list of
priorities. However, the profit motive is important if the business is to provide a living for those
runnig it and those employed by it.
Overview of Product Costing:
Product costing follows these steps:
1. Identify the cost object;
2. Identify the direct costs associated with the cost object;
3. Identify the overhead costs;
4. Select the cost allocation base to use in assigning overhead costs to the cost object;
5. Develop the overhead rate for allocating overhead to the cost object.
The cost accounting system “builds up” the cost of product (or other cost object) by recording to
a job cost sheet, a work-in-process account, or some other appropriate ledger, the direct costs that
can be traced to the product, and a share of the overhead costs, which are allocated to the
product by multiplying the overhead rate by the amount of the allocation base identified with the
cost object.
Following are three definitions of direct costs from different accounting textbooks:
Direct costs of a cost object are costs that are related to the cost object and can be traced
to it in an economically feasible way.
Direct costs are costs that can be directly attached to the unit under consideration.
Direct costs are costs that can be traced easily to specific products.
Direct costs are also called prime costs. For manufacturing companies, direct costs usually can
be categorized as either materials or labor.

29
Direct materials: materials that become part of the finished product and that can be conveniently
and economically traced to specific units (or batches) or product.
Example of direct materials for an apparel manufacturer: fabric. All other materials, such as
thread and zippers, are probably indirect.
Direct labor: costs for labor that can be conveniently and economically traced to a unit (or
batch) of product. The following examples show how the determination of whether a cost is
direct or overhead depends on the identification of the cost object:
Examples of direct labor for an apparel manufacturer:
1) If the cost object is a single pair of pants, in a batch of several dozen pairs:
Probably no labor is direct.
2) If the cost object is a batch of several dozen pairs of pants:
Probably, sewing operators’ wages are direct.
3) If the cost object is a production line in the factory, add:
The line manager’s salary, and possibly wages incurred in the cutting room (where rolls
of fabric are cut into panels and pieces that are then sewn together).
4) If the cost object is the entire factory, add:
The factory manager’s salary, wages of maintenance and janitorial workers, and salaries
of front office personnel.
Even though probably no labor is direct with respect to a single pair of pants, if labor is direct
with respect to a batch of 50 or 100 units, cost accountants would usually (and loosely) call labor
a direct cost with respect to units of product, and divide the direct labor cost for the batch by the
number of units per batch to derive the direct labor cost per unit.
Overhead Costs:
Overhead costs are costs that are related to the cost object, but cannot be traced to the cost object
in an economically feasible way. Overhead costs are not directly traceable to specific units of
production. Examples of overhead costs incurred at an apparel manufacturer, when the cost
object is a batch of product, probably include the following:
- Electricity
- Factory office salaries
- Building and machine maintenance
- Factory depreciation
The distinction between direct costs and overhead costs relate, in some measure, to the way the
accounting system treats the cost. For example, one apparel manufacturer might track thread
using the same methods that are used to track fabric, thus treating thread as a direct material.
Another apparel manufacturer might decide that the cost of thread is immaterial, and does not
warrant the cost and effort to track it as a direct cost. For this company, thread is an overhead
cost. Therefore, whether some costs are direct or overhead depend on a choice made by the
manager and the cost accountant.
There are three ways overhead costs can be treated in any decision-making context: (1) they can
be ignored, (2) they can be treated as a lump-sum, or (3) they can be allocated to the products and
services (i.e., to the cost objects) to which they relate. Each of these three alternatives is
appropriate, depending on the circumstances and the purpose for which the accounting is done.
However, in this chapter and throughout much of this book, we are concerned with the third
alternative: how to allocate overhead costs to products and services.
Cost Allocation Bases

30
The allocation base is the “link” that is used to attach overhead costs to the cost object. In a
manufacturing setting, the simplest allocation base is the number of units produced. For example,
if the factory makes 15,000 units, the accounting system can simply “spread” the overhead costs
evenly over all 15,000 units. The problem with using units as an allocation base, however, is that
if the factory makes a range of different products, those products might differ significantly in
their resource utilization. A deluxe widget might require twice as much labor and 20% more
materials than a standard widget, and one might infer that the deluxe widget also requires more
resources that are represented by overhead costs.
Whatever cost allocation base is chosen, it must be a “common denominator” across all cost
objects. For example, a furniture factory could allocate overhead costs across all products using
direct labor hours, because direct labor is incurred by all products made at the factory. However,
it would not seem appropriate to allocate factory overhead based on the quantity of wood used in
each unit, if the factory makes both wood furniture and a line of plastic-molded, because no
overhead would be allocated to the plastic chairs.
Overhead Rates:
The overhead rate is the ratio of cost pool overhead dollars in the numerator, and the total
quantity of the allocation base in the denominator:

Overhead rate = Overhead costs in the cost pool

Total quantity of the allocation
base
The result represents dollars of overhead per unit of the allocation base. For example, if an
apparel factory allocates overhead based on direct labor hours, the overhead rate represents
dollars of overhead per direct labor hour. Assume the overhead rate is $20 per direct labor hour.
Then for every hour that a sewing operator spends working on product, $20 will be allocated to
the products that the sewing operator assembles during that hour.
Cost estimates may serve as targets in controlling the costs.
PRIME COST = Direct material +Direct labour + Direct expenses
OVERHEAD = Indirect material + Indirect labour + Indirect expenses
TOTAL COST = PRIME COST + OVERHEAD
ADVANTAGES OF COST ACCOUNTING:
 It reveals profitable and unprofitable activities.
 It helps in controlling costs with special techniques like standard costing and budgetary
control
 It supplies suitable cost data and other related information for managerial decision
making such as introduction of a new product, replacement of machinery with an
automatic plant etc
 It helps in deciding the selling prices, particularly during depression period when prices
may have to be fixed below cost
 It helps in inventory control
 It helps in the introduction of a cost reduction programme and finding out new and
improved ways to reduce costs
 Cost audit system which is a part of cost accountancy helps in preventing manipulation
and frauds and thus reliable cost can be furnished to management
ESSENTIALS OF A GOOD COST ACCOUNTING SYSTEM:
31
The method of costing adopted. It should be suitable to the industry
 It should be tailor made according to the requirements of a business. A ready made
system can not be suitable
 It must be fully supported by executives of various departments and every one should
participate in it
 In order to derive maximum benefits from a costing system, well defined cost centres and
responsibility centres should be built within the organization
 controllable and uncontrollable costs of each responsiblity centre should be separately
shown
 cost and financial accounts may be integrated in order to avoid duplication of accounts
 well trained and educated staff should be employed to operte the system
 It should prepare an accurate reports and promptly submit teh same to appropriate level of
management so that action may be taken without delay
 resources should not be wasted on collecting and compiling cost data not required. Only
useful cost information should be compiled and used whenever required.

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