Textile Finishing Cost Calculation

What is Textile Finishing?
Textile finishing helps to improve the appearance, hand-feel, performance or other aesthetics of the textiles. Finishing process is performed to impart some additional properties to the fabric. Textile finishing process may impart some functional properties and common properties either by physical treatment or by chemical treatment.

In this process, all the mechanical finishes are performed by the mechanical action and so the cost of processing fabric will be less compared to the chemical finishing treatment. In the case of chemical finishing, similar to the dyeing and other wet processing steps, the fabric is passed into a mixture of chemicals to achieve special qualities and properties of the treated fabric. There are several machines used in this section of the industry but the process flow of these finishing machines will be similar to each other. The general flow process of the finishing sequence is given below,

Process Sequence of the Textile Finishing:

Receipt of fabric form dyeing department

⇓

Treatment with finishing chemical

⇓

Post treatment if required

⇓

Curing process

⇓

Washing if required

⇓

Fabric plaiting zone

Different Types of Textile Finishing:

A. Mechanical finishing

1. Calendering
2. Compacting
3. Embossing
4. Raising or Napping
5. Sueding
6. Heat setting
7. Sanforising

B. Chemical finishing

1. Softening
2. Crease proofing
3. Soil release finish
4. Flame retardant finish
5. Oil or water resistant finish
6. Anti bacterial finish
7. Anti static finish

Textile finishing process is very similar to other processing activities like bleaching and dyeing. The fabric will be passed into finishing chemical through a padding mangle or using finishing machines and are then immediately cured after the process.

Factors Influencing in Textile Finishing Cost Calculation:
In this process, the factors influencing the cost are listed as follows:

1. Production capacity of the machine
2. Chemical cost
3. Labor cost
4. Electricity cost
5. Other overhead expenses

The following examples detail the cost calculation in the textile finishing section.

Example 1:
A processing industry received an order to finish the knitted fabric with silicon softener finish. The order quantity received is 5,000 kg of knitted fabric. The factory works with 2 finishing ranges with average production capacity of 250 kg/shift. The factory runs only finishing machines. To operate this particular order, they allotted 3 operators and 2 helpers with a wage of Tk. 920/shift and Tk. 730/shift respectively. The factory is also monitored by a supervisor with a salary of Tk.33,000/month. The finished fabrics are immediately cured and plaited in the range itself. For this purpose, the factory spends Tk.5/kg of fabric produced. A foreman and a fitter also work with factory and their salary is noted as Tk.22,000/month and Tk.18,000/month respectively. Other than this, the factory spends Tk. 25,000/month for firewood, Tk.45,000 for general maintenance, Tk.40,000/month for effluent treatment and Tk.75,000/ month for all other expenses including other staff salary. Calculate the cost of finishing process per kg with 12% profit. The factory works 2 shifts per day and 30 days per month. The raw materials used in this process are listed as follows.

• Chemical 1 for softening finish – 10% on weight of material processed – Tk.80/kg
• Chemical 2 for softening finish – 3% on weight of the material – Tk.65/kg
• Binding agent – 8 % on weight of the material – Tk. 50/kg
• Crosslinking agent – 5% on weight of the material – Tk.95/kg

Solution:

Step 1: Number of shifts required

The total production needs to be done = 5000 kg

Daily production of the company = 250 kg/shift/machine

Total production capacity = 2 × 250 = 500 kg/shift

…………………………………………………Order quantity
Hence, the total shifts required = ———————————-
……………………………………………….Daily production

….5,000
= ———————
…..500

= 10 shifts

Company works two shifts per day. Hence, total days = 5 days

Step 2: Labor cost

To complete the order, the machines are operated by 3 operators and 2 helpers with a wage of Tk.920 and Tk.730 per shift.

Hence, the total labor cost is
= (Number of labors × Total working shifts × Wages per shift)
= (3 × 10 × 920) + (2 × 10 × 730)
= Tk.27,600 + Tk.14,600
= Tk. 42,200

Total Labor cost = Tk. 42,200
= 351.67 USD    [1 USD = 120 Taka]

Step 3: Calculation of raw material cost

Raw materials expenses

Step 4: Curing cost

For curing Tk.5/kg incurred.

Hence for order, Tk. 5 × 5,000 kg = Tk. 25,000
=208.33 USD   [1 USD = 120 Taka]

Step 5: Overhead cost

• Supervisor salary – Tk.33,000/month.
• Foreman salary – Tk.22,000/month
• Fitter salary – Tk.18,000/month.
• For firewood – Tk. 25,000/month
• General maintenance – Tk.45,000
• Effluent treatment – Tk.40,000/month
• Other expenses – Tk.75,000/month
• Total overhead cost = Tk. 2,58,000

Company works for this order only 5 days.

………………………2,58,000
Overhead/day = —————-
………………………….30

= Tk. 8,600

Therefore, Tk. 8,600 × 5 = Tk. 43,000
= 358.33 USD    [1 USD = 120 Taka]

Step 6: Total cost

Total cost = Labor cost + Material cost + Curing cost + Overheads
= Tk.42,200 + Tk. 93,500 +Tk. 25,000 +Tk. 43,000
= Tk. 2,03,700

…………………………………….2,03,700
Total finishing cost / kg = ————–
……………………………………..5,000

= Tk. 40.74

Profit 12% = Tk. 40.74 + {Tk. 40.74 × 0.12}
= Tk. 45.63
= 0.38 USD   [1 USD = 120 Taka]

Example 2:
A finishing industry received an order of 7850 kg of polyester cotton blended knitted fabric to be processed for flame retardant finishing. The manufacturer works with 3 finishing ranges with a production capacity of 300kg/shift per machine. The machines are operated by 3 operators and 3 helpers with a wage of Tk. 840/shift and Tk.700/shift. The consumption and cost details of the raw materials are provided as follows,

• Chemical 1 flame retardant finish – 12 % on weight of material processed – Tk.210/kg
• Binding agent – 8% on weight of the material – Tk. 80/kg
• Crosslinking agent – 3% on weight of the material – Tk.105/kg

After finishing process, the fabric is immediately dried at 90 degree centigrade and cured at 110 degree centigrade subsequently. For this activity, factory uses steam and the firewood cost is noted approximately as Tk.8/kg. The other overhead expenses including other staff salary, effluent plant expenses, electricity and maintenance are Tk.1,75,000/month of 30 days. Calculate the cost of finishing process with 25% profit if the factory works 2 shifts per day.

Solution:

Step 1: Number of shifts required

The total production needs to be done = 7,850 kg

Daily production of the company = 300 kg/shift/machine

Total production capacity = 3 × 300 = 900 kg/shift

………………………………………………..Order quantity
Hence, the total shifts required = —————————————
……………………………………………….Daily production

….7,850
= ————-
…..900

= 8.72 shifts

Company works two shifts per day.

Hence, total days = 4.36 days

Step 2: Labor cost

To complete the order, the machine operated by 3 operators and 3 helpers with a wage of Tk.840 and Tk.700 per shift.

Hence, the total labor cost is = (Number of labors × Total working shifts × Wages per shift)
= (3 × 8.72 × 840) + (3 × 8.72 × 700)
= Tk.21,974.4 + Tk.18,312
= Tk. 40,286.4

Total Labor cost = Tk. 40,286.4
= 335.72 USD   [1 USD = 120 Taka]

Step 3: Calculation of raw material cost  

Raw materials expenses of example

Step 4: Firewood/ curing cost

For curing Tk.8/kg incurred.

Hence for order, Tk. 8 × 7850 kg = Tk. 62,800
= 523.33 USD   [1 USD = 120 Taka]

Step 5: Overhead cost

Total overhead cost = Tk. 1,75,000

Company works for this order only 4.36 days.

………………………1,75,000
Overhead/day = ————
………………………….30

= Tk. 5,833.33

Therefore, Tk. 5,833.33 × 4.36 = Tk.25,433.32
= 211.94 USD   [1 USD = 120 Taka]

Step 6: Total cost of the antimicrobial finishing

Total cost = Labor cost + Material cost + Curing cost + Overheads
= Tk. 40,286.4 + Tk. 2,72,787.5 + Tk. 62,800 +Tk.25,433.32
= Tk. 4,01,307.22
= 3,344.23 USD    [1 USD = 120 Taka]

…………………………………….4,01,307.22
Total finishing cost / kg = ————————-
……………………………………….7,850

= Tk. 51.12

Profit 25% = Tk. 51.12 + {Tk. 51.12 × 0.25}
= Tk. 63.9
= 0.53 USD   [1 USD = 120 Taka]

Conclusion:
For the calculation of textile finishing cost requires a comprehensive understanding of various factors such as raw materials, labor, machinery, overheads, and quality control. Each component plays a vital role in calculation of textile finishing cost. Proper textile finishing cost calculation is essential for both profitability and maintaining product quality.

References:

1. Handbook of Textile and Apparel Costing by Dr. R. Rathinamoorthy, Dr. R. Surjit and Dr. K. J.Vishnu Vardhini
2. Apparel Merchandising by R. Rathinamoorthy and R. Surjit
3. Textile Engineering: An Introduction Edited by Yasir Nawab
4. Textile and Clothing Design Technology Edited by Tom Cassidy and Parikshit Goswami