Introduction:
Printing cost calculation in the garment industry involves several factors, from materials used to production complexity. It is the second process of costing in the sequence of garment manufacturing. Generally, printing process are performed next to the cutting process. That is because of two reasons, (i) These operations are smaller in size and performed in specific components of the garment, (ii) Sometimes, performing these operations after sewing may be difficult. Hence, the component alone is passed to this section to perform the action. One of the advantages of this process is that it reduces the staining on the rest of the parts of the garment and it reduces the handling time of the printing operators.
In the case of printing cost calculation, garment merchandiser must quote the approximate price based on their previous experience. After the completion of the process, based on the chemicals consumed and dyes utilized, the exact cost must be calculated.
Printing Cost Calculation in Garment Industry:
Among the several printing methods that exist, screen printing is one of the commonly used techniques in the apparel printing process after cutting the garment components. Hence in this section, the cost estimation of the screen printing process is discussed. The data provided here are approximate and they are used only for the understanding purpose. The process of printing is different from the dyeing process, in this method; the colors are applied in a localized manner based on the requirement in a patterned way. In this process, the dye materials are mixed with thickeners and other chemicals to make it as a semi-solid. The solution is called as printing paste. This paste is applied based on the design either by blocks or screens or rollers, etc. In this process, based on the method used, the following processes are involved: design development, screen preparation, printing paste preparation, fabric preparation, printing, drying, curing and washing if needed.
The factors affecting the cost of the printing process are:
- Type of printing process – Pigment, discharge, reactive, resist, block, foil, etc.
- Size of the design
- Methods used – screen, block, roller or others
- Dyes and chemicals used
- Post treatment – curing or drying
- Number of colors
The following are the other expenses that are commonly incurred in the process of screen printing and these costs are specific to the various steps involved in the preparatory process of screen printing. They are,
a) Designing charges: Once the design is received, the manufacturer needs to reproduce the design on the printing screen. For that purpose, the designing process is carried out. The amounts charged for designing a square inch vary from Tk. 1.5 to Tk. 3.50 based on the design complication.
b) Frame charges: For the screen printing process, the developed films need to be fitted on a frame to fix with a material. If the print design differs from commercial sizes, then the manufacturer needs to make the frames for that order. In that case, the costs of making frames are also included in the total cost. The cost varies from Tk.150 – Tk.500 (not limited) based on the size.
c) Exposing and making charges: After making the designs, to transfer the designs in a film, the making or exposing process is used. The designs are transferred to the film based on color, i.e., separate film for individual color. In this example, the design contains six colors.
Hence, six films are to be prepared and to complete a full design, the fabric needs to be passed through all six screens. For this process, the exposing charges vary approximately from Tk. 0.50 to Tk. 1.50 for the film size used.
d) Dye selection: Based on the customer requirement, fabric type and print design requirement, the dyes are selected. The cost of the dye depends upon the quality of the product. In general, plastisol, pigments, discharge dyes and non-PVC dyes are commercially used.
Steps involved in the design preparation:
Before initiating the screen printing process, the manufacturing company performs the following operation based on the Tech pack details.
- Step 1: Design details and measurements from tech pack
- Step 2: Identification of color requirements
- Step 3: Development design and layering design as per number of color
- Step 4: Printing screen development
Steps involved in the cost calculation:
As reported in the cutting section, the printing department also uses to have the same set of cost parameters. They are,
(a) Raw material cost: Dyes, pigments and other colors, Printing additives, special chemicals, print screen cost, frame cost and curing cost comes under raw material cost.
(b) Labor cost: Here, machine operators are the direct labors, there will be a designing person and chemist to get the exact shade.
(c) Production capacity: It is based on the machine capacity, number of colors in the screen and based on style complications.
(d) Overhead expense: Supervisor or department manager or in charge salary, electricity cost, are the major overhead expenses and other common expenses like maintenance, cleaning etc. will fall on this category.
To calculate the cost of the printing process, it is important and necessary to collect the above-mentioned details. The following example, details how to obtain the data from a Tech pack and how to estimate the printing cost for any style.
Example:
A screen printing industry received an order with 8,500 T-shirts, to print a photo print on T-shirt chest area. The details obtained from the tech pack are provided by the buyer.
For the designing purpose, the company spends Tk.2.50 per square inch, the cost of making of a single frame is Tk. 450, the exposing charges per square inch is Tk. 1.80 and curing charges, Tk.0.50/garment. Expected dye quantity, color wise and their price details are as follows:
- Little boy blue – 15 Kgs and cost per kg is Tk.360
- Ocean wave green – 8 Kg and cost per kg is Tk.420
- Yellow – 6 Kg and cost per kg is Tk.500
- Nasturtium orange – 6 Kg and cost per kg is Tk.400
- Navy blue – 2 Kg and cost per kg is Tk.480
- Optic white – 2 Kg and cost per kg is Tk.300
- High rise grey – 3 Kg and cost per kg is Tk.310
- Binder and other chemicals – 8 kg and cost per kg is Tk.250
Calculate the cost of the print/garment with 10% profit, if the company works with 3 laborers with a wage of Tk.350 per shift and 1,000 garments as their average production per shift. The other overhead charges are, electricity charges Tk.13,000/month, supervisor salary Tk.20,000/month and other expenses Tk. 50,000/month. Consider company works 30 days in a month. The design size is 6.8 x 4.8” and the frame size is 10”× 8”.
Solution:
Step 1: Number of shifts required to complete the order.
The order quantity = 8500 garments
Daily production = 1000 garments
………………………………………………………………..Order quantity
No. of shits required to complete the order = —————————————
………………………………………………………………Daily production
….8,500
= ——————-
….1000
= 8.5 shifts
The company works 1 shift per day. no. of days to complete the order is 8.5 days.
Step 2: Calculation of labor cost
Total printing personnel used are 3 with a wage of Tk.350 each
Hence, the total labor cost is,
= (Number of labors × Total Working shifts × Wages per shift)
= (3 × 350 × 8.5) = Tk. 8,925
Total labor cost = Tk.8,925
= 74.375 USD [1 USD = 120 Tk]
Step 3: Calculation of process cost
(i) Designing charges
Total design area = 6.8 × 4.8
Total number of colors = 7
Total designs = 7
Charge per square inch = Tk. 2.50
Total cost = (6.8 × 4.8) ×7 × 2.50 = Tk. 571.2
= 4.76 USD
(ii) Frame charges
Frame charge Tk.450*
Total number of colors = 7
Hence, total number of frames = 7
So total cost is = 450 × 7 = Tk. 3150
= 26.25 USD [1 USD = 120 Tk]
*Note:
As the frame charges are directly provided, there is no need to consider the frame size.
(iii)Exposing charges – Tk.1.80 per square inch
Total area of the frame (film/screen) = 10 × 8 = 80 inch2
Since it required 7 films = 80 × 7 = 560 inch2 (Total area)
Total making cost = 560 × 1.80 = Tk. 1,008 = 8.4 USD
(iv) Curing charges = Tk. 0.50/garment.
Total cost = 8,500 x 0.50 = Tk. 4250 = 35.42 USD
Total process cost = Tk.571.2 + Tk. 3,150 + Tk.1,008 + Tk. 4,250 = Tk.8,979.2
= 74.83 USD [1 USD = 120 Tk]
Step 4: Raw material cost
The following raw materials were used in the printing process
- Little boy blue = 15 Kgs × Tk.360 = Tk.5,400
- Ocean wave green = 8 Kg × Tk.420 = Tk.3,360
- Yellow = 6 Kg × Tk.500 = Tk.3,000
- Nasturtium orange = 6 Kg × Tk.400 = Tk.2,400
- Navy blue = 2 Kg × Tk.480 = Tk.960
- Optic white = 2 Kg × Tk.300 = Tk.600
- High rise grey = 3 Kg × Tk.310 = Tk.930
- Binder and other chemicals = 8 kg × Tk.250 = Tk.2,000
- Total cost = Tk. 18,650 = 155.42 USD
Step 4: Overhead cost
(a) Electricity charges Tk.13,000/month,
(b) Other expenses Tk.50,000/month.
(c) Supervisor salary Tk. 20,000/month
………………..83,000
Total cost = —————
……………….30 days
= Tk. 27,66.67/day
For this order company works 8.5 days hence,
The total overhead cost = Tk. 23,516.70 = 195.97 USD
Step 5: Total cost
= Labour cost + Process cost + Raw material cost + Overhead cost = Tk.8,925+ Tk.8,979.2 + Tk. 18,650 + Tk. 23,516.70
= Tk. 60,070.90 = 500.59 USD
……………………………60,070.90
Cost per garment = ———————
………………………………8500
= Tk. 7.07
= 0.059 USD [1 USD = 120 Tk]
With 10% profit = 7.07 + {7.07 × (10/100)}
= Tk. 7.777 = 0.065 USD
References:
- Handbook of Textile and Apparel Costing by Rathinamoorthy, Surjit and Vishnu Vardhini
- Apparel Merchandising by R. Rathinamoorthy and R. Surjit
- Garments Merchandising by M.A. Kashem
- Practice of Garments Merchandising and Management by Engr. Md. Faruq Hosen