Dyeing Cost Calculation in Textile Industry

Dyes are organic compounds which are widely used for imparting color to textiles through two important chemical processes. The dye molecules selectively absorb and reflect incident white light and it is the reflected wavelength which gives the observed color to the textile product. The purpose of dyeing is not only to impart color to the fiber, but the dyed fiber must also retain the dye. Dyeing is most popular because this is the final stage of manufacturing in the textile mill after which the material is sold in the market. There are several types of dyes used in the textile industry to dye the various fibers available.

The general process flow of the dyeing process is given below.

Bleached/mercerized fabric as a feed

↓

Addition of dyeing recipe

↓

Dyeing and padding with rollers

↓

Dwelling chambers for dye absorption

↓

Washing and neutralising zone

↓

Fabric nipping with high pressure roller

↓

Washing and drying zone

↓

Fabric plaiting zone

Factors Influences The Dyeing Cost Calculation:
There are some factors which affect the dyeing cost calculation in textile wet processing factory.:

1. Machine production capacity
2. Dyes and chemical cost
3. Labor cost
4. Steam cost (used in steam drying cylinders)
5. Factory efficiency
6. Electricity cost
7. Water cost
8. Other overhead expenses

The following examples will detail the method of calculation of dyeing cost..

Example 1:
A processing mill received an order from the garment manufacturer to dye a knitted fabric of 8500 kg. The average daily production of the soft flow dyeing machine is 210 kg. The company works with 4 such machines for this order. The material and the prices used in the process are listed below in Table 1. To complete the order, the factory works with 3 machine operators and 1 helper with a wage of Tk.680/shift and Tk.520/shift respectively. Calculate the dyeing cost per kg with 15 % profit, if the company works three shifts per day. The overhead expenses are estimated as follows. Factory rent – Tk.22,000/ month, effluent treatment expenses Tk.75,000/month, other staff salary – Tk.12000/month, steam expenses – Tk.20,000/month and other overheads – Tk.25,000/month of 30 days.

Table 1: Raw materials used and its prices of example 1

Solution:

Step 1: Number of shifts required

The total production needs to be done = 8,500 kg

Daily production of the company = 210 kg/day/machine

Total production capacity = 210 × 4 = 840 kg/day

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

….8,500
= —————
…..840

= 10.12 days

Company works three shifts per day. Hence number of days = 30.36 shifts

Step 2: Labor cost

The number of labors used are, 3 machine operators with the wage of Tk. 680/shift and 1 machine helper with the wage of Tk. 520/shift.

Hence, the total labor cost is
= (Number of labors × Total working shifts × Wages per shift)
= (3 × 30.36 × 680) + (1 × 30.36 × 520)
= Tk. 61,934.4 + Tk. 15,787.2
= Tk. 77,721.6

Total labor cost = Tk. 77,721.6

Step 3: Calculation of raw material cost

• Dye 1 = 120 kg × Tk.210 = Tk. 25,200
• Dye fixing agent = 42 kg × Tk.180 = Tk.7,560
• Wetting agent = 65 kg × Tk.110 = Tk.7,150
• Neutralising agent = 110 kg × Tk.80 = Tk.8,800

Total raw material cost = Tk.48,710

Step 4: Overhead cost

• Factory rent – Tk.22,000/month
• Effluent treatment expenses Tk.75,000/month
• Other staff salary – Tk.12,000/month
• Steam expenses – Tk.20,000/month
• Other overheads – Tk.25,000/month

Company works for this order only 10.12 days

………………………1,54,000
Overhead/day = ————————
………………………….30

= Tk. 5,133.33

Therefore, 5,133.33 × 10.12 = Tk. 51,949.30

Step 5: Total cost of the dyeing

Total cost = labor cost + Material cost + Overheads
= Tk. 77,721.6 + Tk.48,710 + Tk. 51,949.30
= Tk. 1,78,380.9

…………………………………1,78,380.9
Total dyeing cost / kg = —————————-
…………………………………….8,500

= Tk. 20.98

Profit 15% = Tk. 20.98 + {Tk. 20.98 × 0.15} = Tk. 24.13

Example 2:
A processing unit received an order of 10,000 kg of fabric to bleach and dye subsequently. In this process, the factory runs three bleaching range machines with a production capacity of 460 kg/shift. The average daily production of the soft flow dyeing machine per shift is 220 kg. The company works with 4 machines for this order. To complete the order, the factory works with 3 bleaching machine operators, and 3 helpers with a wage of Tk.780 and Tk.640 per shift respectively. Similarly for dyeing, the machines are operated by 4 operators and 4 helpers with a wage of Tk.800 and Tk. 610 per shift. The chemicals used in the process and its prices are listed below in Table 2.

Calculate the fabric cost per kg after dyeing with 20 % profit, if the company works two shifts per day. The overhead expenses are estimated as follows. Power – Tk.1,50,000, firewood – Tk.50,000/month, effluent treatment expenses Tk.2,50,000/month, factory manager salary – Tk.62,000/month, maintenance cost – Tk.45,000/month and other overheads like bank interest and etc – Tk.1,20,000/month of 30 days.

Table 2: Raw materials used and its price of example 2

Solution:

Bleaching cost calculations

Step 1: Number of shifts required

The total production needs to be done = 10,000 kg

Daily production of the company = 460 kg/shift/machine

Total production capacity = 460 × 3 = 1,380 kg

Hence, the total shifts required = 7.25 shifts

Company works two shifts per day. Hence, total days = 3.63 days

Step 2: labor cost

To complete the order, the machine is operated by 3 operators and 3 helpers with a wage of Tk.780 and Tk. 640 per shift.

Hence, the total labor cost is = (Number of labors × Total working shifts × Wages per shift)
= (3 × 7.25 × 780) + (3 × 7.25 × 640)
= Tk. 16,965 + Tk. 13,920
= Tk. 30,885

Total labor cost = Tk. 30,885
= 257.38 USD  [1 USD = 120 Taka]

Step 3: Calculation of raw material cost (Table 4.29)

Table 3: Raw materials expense details of example 2

Step 4: Total cost of the bleaching

Total cost = labor cost + Material cost
= Tk. 30,885 + Tk.97,475
= Tk. 1,28,360
= 1,069.67 USD  [1 USD = 120 Taka]

………………………………………1,28,360
Total bleaching cost / Kg = ———————-
……………………………………….10,000

= Tk. 12.84

= 0.107 USD  [1 USD = 120 Taka]

Dyeing cost calculation

Step 1: Number of shifts required

The total production needs to be done = 10,000 kg

Daily production of the company = 220 kg/shift/machine

Total production capacity = 220 × 4 = 880 kg/shift

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

….10,000
= ——————–
…..880

= 11.36 shifts

Company works two shifts per day. Hence number of day = 5.68 days

Step 2: Labor cost

The number of labors used are, 4 machine operators with the wage of Tk. 800/shift and 4 machine helpers with the wage of Tk. 610/shift.

Hence, the total labor cost is = (Number of labors × Total working shifts × Wages per shift)
= (4 × 11.36 × 800) + (4 × 11.36 × 610)
= Tk.36,352 + Tk.27,718.4 = Tk. 64,070.4

Total labor cost = Tk. 64,070.4
= 533.92 USD  [1 USD = 120 Taka]

Step 3: Calculation of raw material cost

• Dye 1 = 60 kg × Tk.140 = Tk. 8,400
• Dye fixing agent = 120 kg × Tk.90 = Tk.10,800
• Wetting agent = 150 kg × Tk.80 = Tk.12,000
• Neutralising agent = 50 kg × Tk.120 = Tk.6,000

Total raw material cost = Tk.37,200
= 310 USD  [1 USD = 120 Taka]

Step 4: Total cost of the dyeing

Total cost = labor cost + Material cost
= Tk. 64,070.4+ Tk.37,200
= Tk. 1,01,270.4
= 843.92 USD   [1 USD = 120 Taka]

…………………………………1,01,270.4
Total dyeing cost / kg = ——————————
…………………………………..10,000

= Tk. 10.13
= 0.084 USD   [1 USD = 120 Taka]

Total Fabric cost = Bleaching cost + Dyeing cost
= Tk. 12.84 + Tk. 10.13
= Tk. 22.97
= 0.191 USD   [1 USD = 120 Taka]

Step 5: Overhead cost

• Power – Tk.1,50,000/month
• Firewood – Tk.50,000/month
• Effluent treatment expenses Tk.2,50,000/month
• Factory manager salary – Tk.62,000/month
• Maintenance cost – Tk.45,000/month
• Other overheads like bank interest and etc – Tk.1,20,000/month

Total overhead expenses = Tk. 6,77,000

Company works for this order only 5.68 days

Step 5: Overhead cost

………………………6,77,000
Overhead/day = ——————–
…………………………30

= Tk.22,566.67

For bleaching department, Company works for this order is 3.63days

Overhead cost = Tk. 22,566.67 × 3.63
= Tk.81,917.01
= 682.64 USD  [1 USD = 120 Taka]

For dyeing department, Company works for this order only 5.68 days.

Overhead cost = Tk. 22,566.67×5.68
= Tk. 1,28,178.69
= 1,068.16 USD  [1 USD = 120 Taka]

Total overhead cost = Tk.81,917.01 + Tk.1,28,178.69
= Tk. 2,10,095.7
= 1,750.8 USD   [1 USD = 120 Taka]

………………………………..2,10,095.7
Overhead cost per kg = —————————
………………………………….10,000

= Tk. 21.01
= 0.175 USD   [1 USD = 120 Taka]

Total cost = Tk. 22.97 + Tk. 21.01
= Tk. 43.98
= 0.37 USD  [1 USD = 120 Taka]

Profit 20% = Tk.43.98 + (Tk. 43.98 × 0.20)
= Tk. 52.776
= 0.44 USD   [1 USD = 120 Taka]

Conclusion:
In the textile industry, dyeing cost calculation involves various factors including material costs (dyes, chemicals, fabric), energy consumption, labor, machine depreciation and maintenance, overhead, waste management, and packaging. I have tried to explain calculation process for dyeing cost with examples.

References:

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

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