Common Spinning Formulas

Grams per Meter 0.5905 / Ne

Grams per Yard 0.54 / Ne

Tex den x .11 = 1000/Nm = Mic/25.4

Ne Nm/1.693

DRAFT (feed weight in g/m) / (delivery weight in g/m)

DRAFT Tex (feed)/Tex(delivery)

DRAFT delivery roll surface speed/feed roll surface speed

No. of hanks delivered by (Length delivered in m/min)/1.605grams per meter = 0.5905/Ne

m/c
Carding

Production in kgs / hr ( L x 1.0936 x 60 x effy ) / (hank (Ne) x 36 x 840 x 2.2045)

Production in kgs / hr (L x Ktex x 60 x effy) / ( 1000 )

L –– delivery
L delivery speed
speed inin m/min
m/min
Production in kgs / 8 hrs effy-
(0.2836efficiency
x L count
Ktex- sliver x effy)in/ Ktex
(Ne) (kilotex)
Ne
L – –delivery
effy –English countin( number
speed
efficiency m/min of 840 yards in one pound)
Production / 8 hrs 840
(Hank
effy
1000- – constant
– efficiency
x Nd)
to /( Netoxkilograms
convert 2.2045) from grams
2.2045-
Hank
Ne to convert
– English
= no hank from
of count (840 lbs to kilograms by the machine
yards)delivered
Total draft in card (feed weight in g/m)
Nd = no of deliveries / (sliver weight in g/m)
Ne = hank of the material
Drawframe

Break draft surface speed of 2nd roller / surface speed of back roller

Main draft surface speed of 1st roller / surface speed of 2nd( middle) roller

Total draft surface speed of delivery roller / surface of feed roller

Production in kgs / 8 hrs (0.2836 x L x effy x Nd) / (Ne)

Production in kgs / hr (FRD x FRrpm x 3.14 x 60 x effy x Nd) / (Ne x 840 x 36 x 2.2045)
L – delivery
FRD – front speed
roller in
diam/min
in inches
effy – efficiency
FRrpm – front roller rpm
effy––english
Ne count
efficiency
Nd – No of delvieries
Ne – Sliver hank
Nd – number of deliveries
Speedframe & Ringframe

Twist / Inch (TPI) Spindle speed / FRS

FRS = FRrpm x 3.14 x FRD FRS – Front roller surface speed

FRD–– front
FRS front roller
roller surface
diametespeed in inches/mi
T.P.I T.M. x sqrt(count or hank)
T.M. – Twist multiplier
Production in kgs / 8 hrs sqrt –x square
(7.2 SS x effy)
root/ (TPI x Ne x 1000)
SS – spindle speed
Spindle speed m/min x TPI x 39.37

Hank delivered spindle speed / ( tpi x 62.89)

Ring traveller speed in m/sec (spindle speed x ring dia in mm x 3.14) / (60 x 1000)

Winding

Production in kgs / 8 hrs (0.2836 x L x effy x Nd) / (Ne)

Production in kgs / hr ( L x 1.0936 x 60 x effy ) / (hank (Ne) x 36 x 840 x 2.2045)

L –– delivery
L delivery speed
speed in
in m/min
m/min
effy – efficiency
effy- efficiency
Ne –– english
Ne English count
count ( number of 840 yards in one pound)
Nd – No of
840 – constantdelvieries
2.2045- to convert from lbs to kilograms
COTTON MIXING
Cotton is a hygroscopic material, hence it easily adapts to the atmospheric

Air conditions. Air temperature inside the mixing and blowroom area should be more than

25 degree centigrade and the relative humidity (RH %) should be around 45 to 60 %,

because high moisture in the fibre leads to poor cleaning and dryness in the fibre leads

to fibre damages which ultimately reduces the spin ability of cotton.

Cotton is a natural fibre. The following properties vary very much between bales

(between fibres) fibre micronaire fibre length fibre strength fibre color fibre maturity. Out

of these, fibre micronaire, color, maturity and the origin of growth results in dye

absorption variation. There fore it is a good practice to check the maturity, color and

micronaire of all the bales and to maintain the following to avoid dye pick up variation

and barre in the finished fabric.

BALE MANAGEMENT:

In a particular lot
Micronaire range of the cotton bales used should be same for all the mixings of a lot
Micronaire average of the cotton bales used should be same for all the mixings of a lot
Range of color of cotton bales used should be same for all the mixings of a lot
Average of color of cotton bales used should be same for all the mixings of a lot
Range of matutrity coefficient of cotton bales used should be same for all mixings of a lot
Average of maturity coefficient of cotton bales used should be same for all mixings of a lot

Please note, In practice people do not consider maturity coefficient since

Micronaire variation and maturity variation are related to each other for a particular cotton.

If the cotton received is from different ginners, it is better to maintain the percentage of

cotton from different ginners throught the lot, even though the type of cotton is same.

It is not advisable to mix the yarn made of out of two different shipments of same cotton.

For example, the first shipment of west-african cotton is in january and the second
 shipment is in march, it is not advisable to mix the yarn made out of these two different

shipments. If there is no shadevariation after dyeing, then it can be mixed.

According to me, stack mixing is the best way of doing the mixing compared to using

automatic bale openers which picks up the material from 40 to 70 bales depending on

the length of the machine and bale size, provided stack mixing is done perfectly.

Improper stack mixing will lead to BARRE or SHADE VARIATION problem. Stack

mixing with Bale opener takes care of short term blending and two mixers in series

takes care of long term blending.

 Tuft sizes can be as low as 10 grams and it is the best way of opening the
material(nep creation will be less, care has to be taken to reduce recyling in the inclined lattice)
 contaminations can be removed before mixing is made
 The raw material gets acclamatised to the required temp and R.H.%, since it is
allowed to stay in the room for more than 24 hours and the fibre is opened , the fibre gets
conditioned well.

Disadvantages:
 more labour is required
 more space is required
 mixing may not be 100% homogeneous( can be overcome by installing double mixers)

If automatic bale opening machine is used the bales should be arranged as follows

let us assume that there are five different micronaires and five different colors in

the mixing, 50 bales are used in the mxing. 5 to 10 groups should be made by

grouping the bales in a mixing so that each group will have average micronaire

and average color as that of the overall mixing. The position of a bale for

micronaire and color should be fixed for the group and it should repeat in the

same order for all the groups

It is always advisable to use a mixing with very low Micronaire range.Preferably

.6 to 1.0. Because
 It is easy to optimise the process parameters in blow room and cards
 drafting faults will be less
 dyed cloth appearance will be better because of uniform dye pickup etc
It is advisable to use single cotton in a mixing, provided the length, strength

micronaire, maturity coefficient and trash content of the cotton will be suitable for

producing the required counts. Automatic bale opener is a must if more than two

cottons are used in the mixing, to avoid BARRE or SHADE VARIATION problem.

It is better to avoid using the following cottons

 cottons with inseparable trash (very small size), even though the trash % is less
 sticky cotton (with honey dew or sugar)
 cotton with low maturity co-efficient
Stickiness of cotton consists of two major causes. Honeydew from Whiteflies and

aphids and high level of natural plant sugars. The problems with the randomly

distributed honey dew contamination often results in costly proudction

interruptions and requires immediate action often as severe as discontinuing the

use of contaminated cottons. An effective way to control cotton stickiness in

processing is to blend sticky and non-sticky cotton. Sticky cotton percentage

should be less than 25%.

 BLOWROOM

BLOWROOM

Basic operations in the blowroom:

1. opening
2. cleaning
3. mixing or blending
4. microdust removal
5. uniform feed to the carding machine
6. Recycling the waste

Blow room installations consists of a sequence of different machines to carry out the

above said operations.Moreover Since the tuft size of cotton becomes smaller and

smaller, the required intensities of processing necessitates different machine

configuration.

TECHNOLOGICAL POINTS IN BLOWROOM

Opening in blowroom means opening into small flocks.Technological operation of

opening means the volume of the flock is increased while the number of fibres remains

constant. i.e., the specific density of the material is reduced

 The larger the dirt particle , the better they can be removed
 Since almost every blowroom machine can shatter particles, as far as possible a
lot of impurities should be eliminated at the start of the process.Opening should

be followed immediately by cleaning, if possible in the same machine.

 The higher the degree of opening, the higher the degree of cleaning. A very high
cleaning effect is almost always purchased at the cost of a high fibre loss. Higher

roller speeds give a better cleaning effect but also more stress on the fibre.

 Cleaning is made more difficult if the impurities of dirty cotton are distributed
through a larger quantity of material by mxing with clean cotton.
 The cleaning efficiency is strongly dependent on the TRASH %. It is also affected
by the size of the particle and stickyness of cotton. Therefore cleaning efficiency

can be different for different cottons with the same trash %.

 There is a new concept called CLEANING RESISTANCE. Different cottons have
different cleaning resistance.
 If cotton is opened well in the opening process, cleaning becomes easier
because opened cotton has more surface area, therefore cleaning is more

efficient
 If automatic bale opener is used, the tuft size should be as small as possible and
the machine stop time should be reduced to the minimum level possible
 If Manual Bale openers are used, the tuft size fed to the feed lattice should be as
small as possible
 Due to machine harvesting, cotton contains more and more impurities, which
furthermore are shattered by hard ginning. Therefore cleaning is always an

important basic operation.

 In cleaning, it is necessary to release the adhesion of the impurities to the fibres
and to give hte particles an opportunity to separate from the stock. The former is

achieved mostly by picking of flocks; the latter is achieved by leading the flocks

over a grid.
 Using inclined spiked lattice for opening cotton in the intial stages is always a
better way of opening the cotton with minimum damages. Ofcourse the

production is less with such type of machines. But one should bear in mind that if

material is recyled more in the lattice, neps may increase.

 Traditional methods use more number of machines to open and clean natural
fibres.
 Mechanical action on fibres causes some deterioration on yarn quality,
particularly in terms of neps. Moreover it is true that the staple length of cotton

can be significantly shortened.

 Intensive opening in the initial machines like Bale breaker and blending machines
means that shorter overall cleaning lines are adequate.
 In a beating operation, the flocks are subjected to a sudden strong blow. The
inertia of the impurities accelerated to a high speed, is substantially greater than

that of the opened flocks due to the low air resistance of the impurities. The latter

are hurled against the grid and because of their small size, pass between the grid

bars into the waste box, while the flocks continue around the periphery of the

rotating beater.
 By using a much shorter machine sequence, fibres with better elastic properties
and improved spinnability can be produced.
 Air streams are often used in the latest machine sequence, to separate fibres
from trash particles by buoyancy differences rather than beating the material

against a series of grid bars.

 There are three types of feeding apparatus in the blowroom opening machines
1. two feed rollers( clamped)
2. feed roller and a feed table
3. a feed roller and pedals

 Two feed roller arrangements gives the best forwarding motion, but unfortunately
results in greatest clamping distance between the cylinders and the beating

element
 feed roller and pedal arrangement gives secure clamping throughout the width
and a small clamping distance, which is very critical for an opening machine
 In a feed roller and table arrangement, the clamping distance can be made very
small. This gives intensive opening, but clamping over the whole width is poor,

because the roller presses only on the highest points of the web. Thin places in

the web can be dragged out of hte web as a clump by the beaters
 Honeydew (sugar) or stickiness in cotton affect the process very badly.
Beacause of that production and quality is affected. Particles stick to metal

surfaces, and it gets aggreavated with heat and pressure. These deposits

change the surface characteristics which directly affects the quality and running

behavior.
 There are chemicals which can be sprayed to split up the sugar drops to achieve
better distribution. But this system should use water solutions which is not

recommeded due to various reasons.

 It is better to control the climate inside the department when sticky cotton is used.
Low temperature (around 22 degree celcius) and low humidity (45% RH). This

requires an expensive air conditioning set up.

 The easiest way to process sticky cotton is to mix with good cotton and to
process through two blending machines with 6 and 8 doublings and to install

machines which will seggregate heavier particles by buoyanccy differences.

 General factors which affect the degree of opening , cleaning and fibre loss are,
1. thickness of the feed web
2. density of the feed web
3. fibre coherence
4. fibre alignment
5. size of the flocks in the feed (flock size may be same but density is
different)
6. the type of opening device
7. speed of the opening device
8. degree of penetration
9. type of feed (loose or clamped)
10. distance between feed and opening device
11. type of opening device
12. type of clothing
13. point density of clothing
14. arrangement of pins, needles, teeth
15. speeds of the opening devices
16. throughput speed of material
17. type of grid bars
18. area of the grid surface
19. grid settings
20. airflow through the grid
21. condition of pre-opening
22. quantity of material processed,
23. position of the machine in the machine sequence
24. feeding quantity variation to the beater
25. ambient R.H.%
26. ambient temperature
 Cotton contains very little dust before ginning. Dust is therefore caused by
working of the material on the machine. New dust is being created through

shattering of impurities and smashing and rubbing of fibres. However removal of

dust is not simple. Dust particles are very light and therefore float with the cotton

in the transport stream.Furthermore the particles adhere quite strongly to the

fibres. If they are to be eliminated they are to be rubbed off.The main elimination

points for adhering dust therefore, are those points in the process at which high

fibre/metal friction or high fibre/fibre friction is produced.

 Removal of finest particles of contaminants and fibre fragments can be
accomplished by releasing the dust into the air, like by turning the material over,

and then removing the dust-contaminated air. Release of dust into the air occurs

whereever the raw material is rolled, beaten or thrown about.Accordingly the air

at such positions is sucked away. Perforated drums, stationary perforated drums,

, stationary combs etc. are some instruments used to remove dust

Cotton yarn: Quality depends on mixing strategy

A systematic mixing plan by maintaining the lowest possible variation in cotton quality
parameters ensures trouble-free yarn production with consistent yarn quality, affirms Sunil
Kumar Sharma.

In a spinning mill control over cotton quality is involved

in the three steps stated below:

1. Approval of cotton bales: It is very important to

purchase the right quality cotton bales according to
defined quality standards. As cotton is a natural fibre and
also a commercial commodity, its availability, prices and
quality vary time to time based on supply and market
demand, and therefore it is very important to select the
required quality cotton bales at reasonable prices which
should be viable for spinning industries. Approval of
cotton bales should be very strict against its standards,
otherwise this will result in stock of huge quantity of off-standard bales.
2. Grading of cotton bales: After reaching cotton bales in mill, these should be tested and
properly graded according to mill standards. If possible it should be stacked in warehouse
grade-wise.

3. Mixing planning: According to grade-wise, cotton bales stock and spinning count pattern,
cotton bales must be selected for mixing plan with minimum possible variation.

Critical cotton properties

The following are the most common cotton properties, which are measured at the time of
selection of cotton bales:

1. Length: Measured either in inches or in mm.

2. Fineness: Cotton fibre fineness usually measured in micronaire, ie, weight of fibres in
microgram per inch.

3. Strength: Measured as fibre bundle breaking force in gms per tex.

4. Maturity: Measured either in term of maturity coefficient or in maturity ratio.

5. Uniformity: Measured either in % or as an index.

6. Short fibre content: Measured as %.

7. Trash content: Measured as %.

8. Moisture content: Measured as %.

9. Brightness: Represents as Rd value against degree of reflection.

10. Yellowness: Represents as +b value.

11. Colour grade: Colour grade is determined with conjunction of Rd & +b value.

All in one single value - SCI

Spinning Consistency Index (SCI) is a calculated value based on a regression equation. This
equation takes into account all HVI properties and calculates one value to be used on each
sample tested. The SCI is an index derived with data from a large number of cotton samples
having a wide range in properties that is related to test data from yarn spun from each
sample. By multiple regression analysis the contribution of each fibre property to yarn
properties is revealed. Consequently, a single SCI value is influenced by inherent
relationships of cotton micronaire, length, uniformity, strength, Rd and +b.

The following are SCI equation for the most important HVI measurements including colour:
For HVI Calibration Mode:

SCI = - 414.67 + (2.9 x Strength) - (9.32 x Mic) + (49.17 x Length in inch) + (4.74 x
Uniformity Index) + (0.65 x Rd) + (0.36 x +b)

If no colour module is installed then SCI equation is as follows:

SCI = - 322.98 + (2.89 x Strength) - (9.02 x Mic) + (43.53 x Length) + (4.29 x Uniformity
Index)

For ICC Calibration Mode:

SCI = - 414.67 + (2.9 x Strength) - (9.32 x Mic) + (49.17 x Length) + (8.61 x Uniformity
Ratio) + (0.65 x Rd) + (0.36 x +b)

If no colour module is installed then SCI equation is as follows:

SCI = - 322.98 + (2.89 x Strength) - (9.02 x Mic) + (43.53 x Length) + (7.79 x Uniformity
Index)

Effect of fibre properties

Each cotton characteristic imposes its own influence on

spinning process and ultimately on the yarn quality
explained as below:

Fibre length: Fibre length is the most important factor

for spinning. Selection of cotton fibre is usually based on
fibre length only and it is also the main deciding factor
for count range to be spun. Hence this impacts each and
every process of spinning operation. The following are
the main influencing areas where fibre length impacts on
spinning performance and yarn quality.

Count pattern and spinning production rate: Fibre length is the main deciding factor for
count pattern in a spinning mill. Production speeds of spinning machinery also very much
depend on fibre length of cotton. In modern high production spinning set-up cotton fibre
length cannot be selected as per old traditional systems. For modern high production
spinning set-up cotton fibre properties required are as below:
Definition of modern high production spinning set-up: Spinning set-up running with more
than 50 kg/hr carding production rate, getting 40s converted GPSS above 110 with a HOK
level of below 12 in spinning, equipped with modern
Autoconer.

Working performance: Higher length variation causes

poor working performance of spinning processes, which
lead to lower production and huge disturbance in
process. Only achieving average fibre properties as per
standard is not guarantee for better spinning
performance; hence it should be ensured that each cotton
lot should have minimum length variation. Cotton lots
having higher variation should run in controlled quantity,
which is given in next chapter, ie, Mixing plan.

Higher irregularity or unevenness: If cotton lengths are not suitable to the spin plan or
have higher length variation, eg, to produce the 30s NE count if cotton selected below 28 mm
length, it will lead to high irregularity or unevenness in yarn and will also cause higher
autoconer cuts and fabric defects.

High hairiness: Cotton selected of lower fibre length will cause high yarn hairiness, leading
to high fluff generation in department, more tendency of traveller loading, excessive EYC
cuts and cops rejection at autoconer and pilling or barre problem in fabric.
 Fineness/Micronaire of fibre: The second most
important factor for spinning mills to decide the count
pattern is fineness of cotton fibre that is commonly
known as micronaire. Same as fibre length, it is also the
deciding factor for cotton selection and spin plan of a
spinning mill.

Number of fibres in yarn cross-section: Spinning of a

particular fineness of yarn is based on the fibre length of
cotton and its fineness which decide how many fibres
will be in the cross-section of yarn. It seems that below
90 numbers of fibres in cross-section of ring spun yarn
(for coarse & medium count range) can lead to major working problem at spinning with
lower yarn strength while more than 300 numbers of fibres in cross-section of yarn lead to
higher unevenness in ring spun yarn. Hence it is recommended to use right micronaire value
for a particular spin plan. Table 1 recommends guideline for micronaire value for different
count range.

Higher neps generation: Low micronaire value causes high neps generation in blow room
and carding, which lead to higher neps and imperfection in final yarn and white spots or dots
in dyed fabric. Low fineness cotton fibres always have tendency to form fibre entanglement
or neps, hence it is recommended to reduce blow room beaters speed and carding production
rate whenever low micronaire value cotton is being processed.

Barre or shade variation: Too much variation in micronaire values can lead to barre
problem or shade variation in fabric.

Genetic character: Micronaire value of any cotton fibre strongly exhibits its origin variety
genetic character. If a cotton fibre fineness value does not belong to normal distribution of its
origin variety, it means either this fibre is immature or it does not belong to the said variety.
This type of cotton lot should be avoided. Table 2 shows a general trend for critical cotton
characteristics for most common Indian cotton varieties.
Fibre strength: Fibre strength is an important factor for working
of spinning process and yarn strength. Fibre strength is directly
proportionate to yarn strength and working performance of
spinning machines. However it seems that strength of fibre is also
related with others cotton properties like fibre length, micronaire
and maturity. Fibre bundle strength is a deciding factor for
spinning machine speeds. If fibre is not adequately stronger, then
there has to be a compromise with production rate and force to
reduce speed of machines. Similarly ultimate yarn strength will
be less as required.

Maturity: Maturity of cotton fibre is related with its growing

process. A fully mature fibre means the fibre has achieved its
complete growth process and has developed in all respects. Mature fibres achieve and exhibit
better fibre properties in all respect as per their origin of variety characteristics, as described
in Table 2. Fibres which are not grown in a normal condition or picked up before their
complete growth will fail to have their specific characteristics and will be shorter, weak &
fine as compared to mature fibres.

In HVI testing, the maturity index is a relative value that is calculated by using a
sophisticated algorithm including other HVI measurements, such as micronaire, strength and
elongation. It indicates the degree of cell wall thickness within a cotton sample. Table 3
shows the average test results of total 98241 number of bales wrt degree of maturity index.

Hence maturity is a key parameter for cotton selection and spinning process. In various
testing methods it is represented as maturity coefficient, maturity index or as maturity ratio.
Higher the numerical value means higher will be maturity of fibres. Low maturity value
impact at spinning process or yarn quality as below:

Fibre rupture: Immature fibres breaks into multiple

pieces in blow room and carding section during metallic
action of beaters and carding wires cause increase in
short fibres & micro-dust which further reduce the
effective length of fibre and strength. This fibre rupture
increases yarn breaks, yarn defects, spinning waste and
yarn imperfection level, subsequently reducing the
working efficiency of spinning machinery causing lower production, yarn recovery with
lower yarn strength.

Dead cotton neps: Immature fibres create heavy neps during spinning process, which
ultimately reflect as white dots in dyed fabric, causing fabric rejection. Table 3 and Figure 1
showing that fibre maturity is directly proportionate to fibre length & bundle length of fibres.

Uniformity: Settings of spinning drafting rollers depends on the length of fibres. To obtain
optimised and correct spinning draft roller settings fibre uniformity is very important factor.
Cotton fibre with low uniformity causes very high variation in process and creates
difficulties for spinners to set the right setting for particular cotton mixing.

Short fibre content: Fibre lengths below half inch, ie, below 12.5 mm are considered as
short fibres. High short fibre % in cotton leads to many problems in spinning process such as
high end breaks, excessive yarn defects, very high fluff generation, lower machine
efficiency, lower yarn realisation and higher worker turnover.

Trash content: High trash content in mixing causes higher waste extraction, high end breaks
rate at ring frame, higher yarn imperfection and Classimat faults. It also appears as black dots
in greige fabric, usually known as kitti particles.

Moisture content: Cotton is a hygroscopic fibre, it absorbs moisture from a high humid
atmosphere and evaporates it when stored in dry atmosphere. For smooth spinning operation,
the cotton fibre should have moisture in the range of 6 to 8 per cent. Moisture content below
this limit causes high fluff generation and higher end breaks, while cotton having high
moisture content is difficult to open and clean in blowroom-carding, hence creating very high
imperfection and yarn slubs which again cause end-downs at ring frame stage, lowering the
production efficiency with increase in yarn imperfection and defects.
Colour Grade: Variation in colour grade is a major responsible factor for shade variation in
cotton yarn and fabric.

Grading of cotton bales

It is very difficult to grade a cotton lot based on all 11 parameters mentioned above, and
hence we can decide four major critical parameters for grading of cotton bales, which
represent the overall grading of cotton. These parameters may be utilised for cotton bales
procurements, stacking and finally for selecting the cotton bales for Mixing Plan. If a mill's
cotton purchasing is strictly from a particular region then there will be less chances of too
much variation in colour grade, and so critical parameters for them might be as below:

1. Fibre length: A must requirement to decide the count pattern of spin plan.

2. Micronaire: A must requirement to decide the count pattern of spin plan.

3. Maturity: Required to control the quality of cotton, it also represents to fibre strength.

4. Short fibre %: Required to control the working performance of spinning mill and yarn
realisation. It also represents to uniformity of cotton. Less the SFC more the uniformity of
fibre.

If cotton procurement of mill is from different regions, then there might be a possibility of
variation in cotton colour grade. Hence in that case, colour grade also is to be taken into
consideration.
Mixing planning

Object: To mix cotton fibres of different bales in a homogeneous form to overcome the
variations of cotton properties and maintain the uniformity and consistency throughout the
spinning process and in yarn quality.

Making a mixing plan may be a tedious job, but spinning performance totally depends on it.
Hence investing time and skill on mixing plan will pay consistency in spinning wrt working
and quality as a result. A practical mixing plan may be prepared as below:

1. First check the availability of grade-wise cotton bales and spin plan.

2. Then select grade-wise number of cotton bales in ratio of present cotton bales stock and as
required for spin plan. Stock of cotton bales to be utilised in such a manner that long staple
cotton (ie, A ++ in Table 4) to be used for fine count pattern.

3. If present spin plan is not supporting fine count range then it should be preserved for
future, if there is a possibility in future.

4. To control the length variation in a selected mixing plan either we have to consume "A++"
grade cotton first or we have to preserve it till all the bales of "B" grade cotton are exhausted.

5. Refer to cotton grading system as per Table 4, in a mixing plan either there should be top
three grade bales (ie, A++, A+ & A Grade) to be used or lower three grade bales (ie, A+, A
& B Grade) to be used.

6. In a mixing plan fibre length range should not exceed more than 2.5 mm and micronaire
range to be maintained below 0.60. (Refer Table 6.)

7. Low variation in fibre length is required to set right the correct gauges of spinning drafting
rollers and to avoid the fibre rupture and drafting waves. Variation in fibre length causes
poor quality and working of spinning along with high fly generation.

8. Low micronaire range must require maintaining the uniform number of fibres in cross-
section of yarn, which ensures better yarn evenness and single yarn strength.

9. Number of cotton lots in a mixing plan to be selected in such a manner that participation
of each cotton lot bales should not be more than 5 per cent. For example, if we are making a
mixing plan for 100 number of bales than there should be at least 20 number of cotton lots
contributing 5 bales each for each batch. This is required to avoid wide changes in the
mixing plan, even if there is change of one single cotton lot then there will be only 5 per cent
change in particular mixing plan.

10. Replacement of cotton lot should be in decreasing and increasing order. If one cotton lot
is going to be exhausted in mixing that should be run out slowly and replacement lot to be
inserted in same way, which ensures minimum variation in process during replacement of
cotton lots. Table 5 shows how one cotton lot should run out and another should replace it.

11. This system ensures very little change in mixing on day-to-day basis. Only one bale
replacement out of 100 bales mixing will be only 1 per cent change in mixing plan, which is
almost negligible.

12. To further minimise the variation during lot change care should also be taken so that
same grade cotton or cotton lot with same characteristics are replaced.

13. If cotton is procured from different station, then try to replace the cotton lot with same
origin or station.

Monitoring of colour Grade: Monitoring of colour grade is also a very important job to
control the shade variation or barre problem in resultant yarn and fabric. The following
guidelines might be useful for better control on colour grade of cotton.

Rd value: Usually in Indian cotton Rd values lie between 72 and 82. For better control it is
advisable to maintain the Rd value range below 5 in daily mixing plan. (Refer Table 6.)

+b: +b value significantly differs region-wise and variety-wise. In Indian cotton +b lies in
range of 6.0 and 11.0. It is better to maintain the +b range below 2.5 in one variety cotton
mixing. (Refer Table 6.)

Colour grade: The colour grade is determined by locating the quadrant of the colour chart in
which the Rd and +b values intersect. For example, a sample with Rd value of 72 and +b
value of 9.0 would have a colour code of 41-3. Colour grade is represented in three digits as
xx-y. First digit represents brightness of cotton. Lower the number higher will be the
brightness of cotton. Second digit represents yellowness of cotton; yellowness increases with
increase in second digit number. There are 25 colour grades and five categories of colour
grades. Indian cotton usually lies in white and light spotted categories with middling to good
middling colour grade.

To avoid the shade variation or barre problem it is advisable that only four adjacent cotton
grades be selected for mixing plan, eg, 11, 12, 21, 22 may run together but running 11 with
31 or 11 with 13 should be avoided.

Colour grade categories of spotted, tinged and yellow stained, ie, represented by 3, 4 & 5
numbers in second digit of colour grade should be strictly avoided.
Use of off-standards bales: In spinning mills there should be strict control on purchasing of
cotton bales or passing for quality specification, otherwise a lot of off-standard cotton bales
accumulate in mill godown, which will never allow spinners to prepare a controlled mixing
plan. However even after better control there might be chances of some off-standard cotton
bales lying, which do not belong to normal standard either for any single parameter or due to
failure of multiple parameters. These bales are to be utilised in very controlled manner so
that their bad quality should not affect spinning process and yarn produced. Based on quality
parameters of off-standard bales these may be consumed in controlled manner (ie, in a range
of 1 to 5 per cent according to quality parameter) as below:

1. If there is only a slight variation in any one or two parameters from standard, then such
cotton bales may be considered in mixing with 3 per cent contribution. For example, if
standard for fibre length is above 29 mm and the micronaire is above 3.6 and actual values of
a cotton lot found are 28.5 mm and 3.5 mic value then such cotton bales may be considered
with 3 per cent ratio in mixing.

2. If there is a significant deviation in a single value, such as instead of 29 mm fibre length it

is 27 mm while rest other parameters observed are within range, in that case such cotton
bales may be consumed with below 2 per cent ratio.

3. If 2 - 3 parameters fail to meet the standard specs, then such cotton bales should be strictly
consumed with below 1 per cent ratio.

Mixing Plan monitored through Spinning Consistency Index: Instead of monitoring of

several parameters for a mixing plan, it might be more easy to monitor the "SCI" value of
cotton properties obtained from HVI test report. The following guidelines may be adapted for
using "SCI" value in cotton grading and mixing planning:
1. Cotton may be graded in five grades and stored in warehouse according to their SCI value,
ie, as below:

2. According to stock position a mixing plan must be prepared and average, minimum,
maximum and range should be drawn for SCI value.

3. Average SCI value of daily mixing should be maintained constant and there should not be
more than +/-2 deviations on daily basis.

4. It should be tried that maximum and minimum range of SCI value should not be more than
30, for an ideal mixing plan it should be maintained below 20.

5. The total range of maximum and minimum SCI value should also be monitored on a daily
basis and there should not be too much variation on daily basis.

Conclusion

Cotton is the most favourable fibre for spinning industries. As cotton is a natural fibre, hence
variation in its properties is also an inherent characteristic. To overcome these variations,
scientific and systematic control is required on cotton quality. Control over cotton quality in
a spinning mill is recommended in three stages, ie, approval of cotton bales, grading of
cotton bales and finally selection of cotton bales for mixing plan.

Major cotton fibre properties and their impacts on spinning processes and yarn quality have
been explained in details with examples, data and graphical representations. More emphasis
has been given on SCI and maturity of fibres. Maturity of cotton fibre is an important
parameter and also impacts on others parameters such as length, strength, elongation, etc. All
in one single value derived from regression equation Spinning Consistency Index (SCI) is a
value influenced by inherent relationships of cotton micronaire, length, uniformity, strength,
Rd and +b, which may help spinners to monitor only one parameter for decision making.

Mixing planning is a very important function for spinning operation and investing the time
and skill for systematic mixing plan pays good returns such as consistency in productivity
and quality. A systematic mixing plan by maintaining the lowest possible variation in cotton
quality parameters ensures trouble-free yarn production with consistent yarn quality.
Variation in cotton colour grade is a major responsible factor for shade variation and barre
problem in fabric, and hence control over cotton colour grade is one of the most important
functions of mixing plan, which cannot be ignored. Consuming the off-standard quality bales
is a tricky job and it should be used in a very controlled manner so that performances of
spinning process and yarn quality are not affected.
 COSTING FOR A SPINNING MILL

INTTRODUCTION:

It is better to review the basics concepts, costing methods and techniques and elements of costing
before we work out a costing for a spinning mill.

Cost accounting is a system of determining the costs of products or services. It has primarily
developed to meet the needs of management. It provides detailed cost information to various
levels of management for efficient performance of their functions.

Financial accounting provides information about profit , loss, cost etc., of the collective activities
of the business as a whole. It does not give the data regarding costs by departments, products,
processes and sales territories etc. Financial accounting does not fully analyse the losses due to
idle time, idle plant capacity, inefficient labour, sub-standard materials, etc. Cost accounting is
not restricted to past. It is concerned with the ascertainment of past, present and expected future
costs of products manufactured or services supplied. Cost accounting provides detailed cost
information to various levels of management for efficient performance of their functions.

"A cost is the value of economic resources used as a result of producing or doing the things
costed"

Cost is ascertained by cost centres or cost units or by both.

For the purpose of ascertaining cost, the whole organisation is divided into small parts of
sections. Each small section is treated as a cost centre of which cost is ascertained. A cost
centre is defined as " a location, person, or item of equipment(or group of these) for which costs
may be ascertained and used for the purpose of control. A cost accountant sets up cost centres to
enable him to ascertain the costs he needs to know. A cost centre is charged with all the costs
that relate to it. The purpose of ascertaining the cost of cost centre is cost control. The person in
charge of a cost centre is held responsible for the control of cost of that centre.

Cost unit breaks up the cost into smaller sub-divisions and helps in ascertaining the cost of
saleable products or services. A cost unit is defined as a " unit of product , service or time in
relation to which cost may be ascertained or expressed." For example in a spinning mill the cost
per kg of yarn may be ascertained. Kg of yarn is cost unit. In short Cost unit is unit of
measurement of cost.
METHODS OF COSTING:

Method of costing refers to the techniques and processes employed in the ascertainment of costs.
The method of costing to be applied in a particular concern depends upon the type and nature of
manufacturing activity. Basically there are two methods of costing

1.Job costing: Cost unit in job order costing is taken to be a job or work order for which costs
are separetely collected and computed.

2.Process costing: This is used in mass production industries manufacturing standardised

products in continuous processes of manufacutring. Cost are accumulated for each process or
department. For spinning mills , process costing is employed.

TECHNIQUES OF COSTING:

These techniques may be used for special pupose of control and policy in any business
irrespective of the method of costing being used there.

Standard costing: This is the valuable technique to control the cost. In this technique, standard
cost is predetermined as target of performance and actual performance is measured against the
standard. The difference between standard and actual costs are analysed to know teh reasons for
the difference so that corrective actions may be taken.

Marginal costing: In this technique, cost is divided into fixed and variable and the variable is of
special interest and importance. This is because, marginal costing regards only variable costs as
the costs of products. Fixed cost is treated as period cost and no attempt is made to allocate or
apportion this cost to individual cost centres or cost units.

Cost Ascertainment is concerned with computation of actual costs. Ascertainment of actual costs
reveals unprofitable activities losses and inefficiencies .

Cost Estimation is the process of predetermining costs of goods or services. The costs are
determined in advance of production and precede the operations. Estimated costs are definitely
the future costs and are based on teh average of the past actual costs adjusted for future
anticipated changes in future. Cost estimates are used in the preparation of the budgets. It helps
in evaulating performance. It is used in preparing projected financial statements. Cost estimates
may serve as targets in controlling the costs.
CLASSIFICATION OF COSTS:

Costs are classified into direct costs and indirect costs on the basis of their identifiability with
cost units or processesses or cost centres.

DIRECT COST: These are the costs which are incurred for and conveniently indentified with a
particular cost unit, process or equipment. For a spinning mill, costs of rawmaterial used,
packing material, freight etc are direct costs

INDIRECT COST: These are general costs and are incurred for the benefit of a number of cost
units, processes or departments. These costs cannot be conveniently identified with a particular
cost unit or cost centre. In a spining mill, power cost, administrative wages, managerial salaries,
materials used in repairs etc are indirect costs.

The terms direct and indirect should be used in relation to the object of costing. An item of cost
may be direct cost in one case and the same may be indirect in the other case.It is the nature of
business and the cost unit chosen that will determine whether a particular cost is direct or
indirect.

FIXED AND VARIABLE COSTS; Costs behave differently when level of production rises or
falls. Certain costs change in sympathy with production level while other costs remain
unchanged. As such on the basis of behaviour or variability, costs are classifed into fixed,
variable and sem-variable.

FIXEDCOSTS; These costs remain constant in "total" amount over a wide range of activity for a
specified period of time. They do not increase or decrease when the volume of production
changes.

VARIABLE COSTS: These costs tend to vary in direct proportion to the volume of output. In
other words, when volume of output increases, total variable cost also increases and vice-versa.

ELEMENTS OF COST: A cost is composed of three elements i.e. material , labour and expense.
Each of these elements may be direct or indirect.

DIRECT COST INDIRECT COST

Direct material Indirect material
Direct labour Indirect labour
Direct expenses Indirect expenses
MATERIAL COST:

DIRECT MATERIAL is that which can be conveniently identified with and allocated to cost
units. Direct materials generally become a part of the finished product. For example, cotton used
in a spinning mill is a direct material.

INDIRECT MATERIAL is that which can not be conveniently identified with individual cost
units. In a spinning mill, engineering department spares, maintenance spares, lubricating oils,
greases, ring travellers etc

LABOUR COST:

DIRECT LABOUR cost consists of wages paid to workers directly engaged in converting raw
materials into finished products. These wages can be conveniently identified with a particular
product, job or process.

INDIRECT LABOUR is of general character and cannot be conveniently identified with a

particular cost unit. In other words, indirect labour is not directly engaged in the production
operations but only to assist or help in proudciton operations. For example in a spinning mill,
the number of maintenance workers, no of workers in utility department etc

EXPENSES; All costs other than material and labour are termed as expenses.

DIRECT EXPENSES are those expenses which are specifically incurred in connection with a
particular job or cost unit. Direct expenses are also known as chargeable expenses.

INDIRECT EXPENSES can not be directly identified with a particular job, process and are
common to cost units and cost centres.

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 profitabale 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:

 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 organisation
 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.

CASE 1. Project costing for a POLY/COTTON PLANT with autodoffing and link to
autoconer:(IN INDONESIA)

Following information is required to work out a costing for a new plant:

 The average count of the plant

 Capacity of the plant - No of spindles to be installed and the number of back process and
winding machines required
 Investment on machineries
 Investment on land
 Investment on building
 working capital required
 product lay out, the count pattern
  Selling price of individual counts
 rawmaterial cost(including freight, duty etc)
 packing cost per kg of yarn
 freight per kg of yarn
 direct labour cost
 indirect labour cost
 fixed power cost
 variable power cost
 spares consumption
 administration costs
 selling overheads

Let us work out a project cost:

For this , i have used the details of the modern mill which is running in Indonesia from year
2000

STEP NO.1: Contribution to be calculated. In general for a spinning mill ,contribution per kg
ofa particular count is calculated to work out the economics for a new project as well as for a
running mill.

Cotribution = selling price - direct cost

Direct cost for a spinning mill includes rawmaterial price, packing cost, freight. All other costs
are either fixed costs or semi variable costs. The other costs can not be conveniently allocated to
per kg of a particular count.

The basic idea of a new project or a running plant is to maximise this contribution. Because
once the plant is designed, spares cost, power cost, administration cost,labour cost etc almost
remain constant. There will not be significant changes in these costs for different count patterns
if the plant is utilisation is same.

The following table gives the details of count pattern, selling price, rawmaterial price, packing
cost and contribution per kg of different counts for a particular period ( year 2000). This is just
an example , one should understand that the selling price, rawmaterial price and all other costs
keep changing. THis is the reason why costing is important for a running mill. All the costs are
changing. Some costs change every month, some once in a year. Therefore costing plays a
major role to run the plant efficiently.

commn
raw selling
no. of no of prdn packing freight 2% on contribn
count prdn/mc material price /
spls mcs kgs/day cost /kg per kg selling per kg
cost/kg kg
price
20s
4480 4 1109 4436 1.456 0.046 0.051 0.04 2.2 2674
CVC
24s
4480 4 881 3525 1.456 0.046 0.051 0.05 2.3 2470
CVC
30s
5600 5 679 3394 1.456 0.046 0.051 0.05 2.4 2712
CVC
30s TC 4480 4 679 2716 1.240 0.046 0.051 0.04 2.15 2091
36s TC 6720 6 552 3315 1.240 0.046 0.051 0.05 2.4 3365
23 17385 contrbn/ day 13312

In the above table, all the costs are in US$. The ringframes are with 1120 spindles per machine
with automatic doffing and link to autoconer. Packing cost is based on indonesian packing
material prices for carton packing.

The ultimate aim of the project is to maximise the contribution. Looking into the cotribution per
kg of yarn, the project should produce only 36s TC. But in this project they have considered 5
different counts. Because

 yarn market is not stable. It needs a lot felxibility

 customers are not same, the price depends on the customers
 the end uses are not same, the price depends on the enduse
 this unit exports 80% of the yarn, it can not depend on one country, eg. 36sTc is only for
Philippines market, it can not be sold in Malaysia, eventhough the quality is good
 the count pattern depends upon the market requirement and the major counts in the
market, not only on the contribution
 A linear programming technique can be used to maximise the contribution, considering
all market constraints, and production constraints.
 flexibility needs more investment and more day to day expenses, if a project has to be
more flexible, it has to invest more money on infrastructure
 the major factor which will make the project feasible with less felexibility is YARN
QUALITY in a spinning mill
 Since this is a critical step for a new project, management should be clear about their
Yarn quality , Flexibility required for marketing and should make use of Linear
Programming Techniques to find out the best product mix to maximise the
contribution.

STEP NO. 2: To work out the Total Investment cost ( machineries, accessories, land and
builidng, humdification and electrical instruments)

The following table gives the requirement of produciton machines. To calculate the number of
back proess and winding drums required, a detailed spin plan should be worked out with speeds
and efficiencies to be achieved in each machine.
While calculating the no of machines required, m/c utilisation, m/c efficiency , waste
percentage, twist multipliers, delivery speeds etc should be considered properly. These factors
should be decided based on yarn quality required, end breakge rates and the capacity of machine.

INVESTMENT ON MACHINERY

MACHINERY NO. OF MCS RATE / MC TOTAL COST

Trutzschler Blowrrom line for cotton 1 line 416,640 416,640
Trutschler Blowrrom line for Polyester 1 Line 321,365 321,365
Trutshcler DK-903 cards 22 92,500 2,035,000
Rieter RSB-D30 draw frames (with
6
autoleveller)
Rieter double delivery drawframe 10 1,648,000
Rieter unilap 2
Rieter E62 combers 10
Howa speed frames with overhead blower 7 144530 1,011,710
Ring frames with autodoffer 23 148,960 3,426,080
winding machines ( 26 drums per mc) 23 93,200 2,143,600
Roving transport ( manual) 1 150,000 150,000
Argus fire system 1 50,000 50,000

TOTAL 11,202,395

Some of the following points can be considered while deciding the machines.

From the above table it is clear that, 23 ringframes with 1120 spindles are working with auto
doffing and with link to autoconer. The major advantage of this automation is to reduce labour
and to reduce the problems related to material handling. One has to really work out the benefits
achieved because of this and the pay back for the extra investment.

Drawframe contributes a lot to the yarn quality and the ringframe and winding machine working.
It is always better to go in for the best drawframes like RSB-D30 drawframes with autoleveller.
It is not wise to buy a cheaper drawframe and save money.

It is always better to keep excess carding and autoleveller drawframes, so that flexibility of the
project is also maintained. If the coarser counts contributes more and the market is good, overall
production can be increased. If the market is for finer count, both the machines (carding and
drawframes)can be run at slower speeds, which will surely contribute to yarn quality.

Speeds of speedframe , combers and ringframes do not affect the yarn quality as it is affected by
card and drawframe speeds.
Blow room capacity should be utilised to the maximum, as it consumes a lot of power ,space and
money.

Ringframe specification should be perfect, because the working performance and power
consumption of the ringframe depends on the specifications like, lift, ring dia, no of spindles etc.
Ring frame specification should be decided to get the maximum production per spindle and to
reduce the power consumed per kg of yarn produced by that spindle. Because the investment
cost and the power consumption for the ringframe is the highest in a spinning mill.

INVESTMENT ON ACCESSORIES:

The following table gives the details of the accessories like cans for carding, drawframe,
bobbins, trollies etc

ACCESSORIES NO. OF MCS RATE / MC TOTAL COST

Carding cans 36" x 48" 120 160 19,200
comber cans 24" x 48" 350 85 29750
Drawframe cans 20" x 48" 1100 53 58,300
Identification bands 20" 400 1.2 480
Identification bands 24" 50 1.8 90
Roving and spinning bobbins 36,000
Plastic crates 400 6 2,400
trolleys 10,000
Cone trolly 80 200 16,000
Fork lift 1 27,000 27,000
hand truck 3 1000 3,000

TOTAL 202,220

SERVICE AND MAINTENANCE EQUIPMENTS:

The following table gives the details about the investments required on service and maintenance
equipments

SERVICE AND MAINTENANCE TOTAL

NO OF MCS RATE/MC
EQUIPEMENTS PRICE
Cots buffing machine and accessories 1 20000 20000
Card room accessories 1 set 60,000 60,000
Spindle oil lubricator 1 4000 4000
Clearer roller cleaning machine 1 3000 3000
Vacuum cleaner 5 3000 15000
pneumatic cleaners 6 500 3000
Weighing balance 3 2000 6000
Strapping machine 2 2000 4000
Premier autosorter 1 2500 2500
Premier uster tester 1 45000 45000
Premier strength tester 1 45000 45000
premier fiber testing 1 45000 45000
Premier Classidata 1 25000 25000
Erection charges 150000
TOTAL 427500

Card service machines like Flat tops clipping machine and flats grinding machine are very
important for yarn quality. One should not look for cheaper machine. It is always better to go for
reputed manufacturers like GRAF, HOLLINGSWORTH etc.

Rubber cots contributes a lot to yarn quality. Bad buffing in ring frame can increase the
imperfections by 15%. Poor quality of buffing in drawframe and speedframes can affect both
production and quality. It is better to go for the best cots mounting machine and cots buffing
machine.

HUMIDIFICATION AND ELECTRICAL EQUIPMENTS:

The following table gives the details about the investments required on humdification and
electrical istruments

Electrical installation including transformer, incoming and

350,000
outgoing panels, bus duct, capacitor, etc for 3800 KVA
Cables 125,000
Compressor, Dryer and pipe lines 180,000
humidifaction system 767,000
chillers 176,000
Ducting and installation for humidification system 125,000
workshops, hydrant and other equipments 100,000
 TOTAL 1,823,000

In indonesia, most of the units use PLN power and some of the spinning mills use Gensets. A
detailed costing has to be done to compare the cost per unit to decide, Whether to use the PLN
power or to go in for Gensets. while working out the costing finance cost on investment ,
overhauling cost, running cost, efficiency of the machine should be considered for cost
caluculation in the case of Genset. In case of PLN power, the losses due to power interruption(
based on the area data), finance cost on initial investment, md charges, unit charges to be
considered. It is better to use 50% PLN and 50 % own generation.

The following table gives the details about land and builiding investments

Land cost 200,000

Land development 40,000
Factory building Including Service ally 192 x 62 meters
1,405,440
11,712 Square meter @ 120 usd/sq meter
Road and others 40,000
TOTAL 1,445,440

STEP NO.3: To calculate the expenses ( labour, power, stores,working capital, insurance etc)

Working capital = 3,000,000

LABOUR:The following table gives the details about labour requirement

DEPARTMENT No of people required

Production 140
packing 15
maintenance 30
utility 17
administration and personal dept 20

Total no of people required per day 222

wages at 50 usd/month including bonus
111,00
and insurance
other facilities at 35 % 3,885
salaries for managerial staff 10000
Other facilities at 35 % 3500

Total labour cost / month 28485

POWER: The following table gives the details about the power

Total units(KWH) produced

69559
(consumed)per day
Unit cost (cost / KWH) 0.03
Total production in Kgs 17,390
KWH/ Kg of yarn 4.0
TOTAL POWER COST /DAY 2087

SPARES:The following table shows the spares cost, repair , and insurance

spares cost at usd 8/1000 spindle shift 222,566

repairs and other overheads 200,000
Insurance at 0.175% on investment and
31320
working capital
TOTAL cost per year 453886

STEP NO.4: PAY BACK CALCULATION

DETAILS IN USD
INVESTMENT:
Land and building 1,444,440
Machinery, accessories & service equipments 11,832,115
Electrical and Humidification ducts 1,823,000
 TOTAL INVESTMENT 15,099,555

WORKING CAPITAL 3,000,000

GRAND TOTAL 18,099,555

RECURRING EXPENDITURES PER DAY

Salaries and Wages 949.5
Power cost 2087
Stores , repairs and insurance 1260.8
TOTAL 4297.3

INTEREST CALCULATION (per day)

On capital 8% 3355.5
on working capital 9% 750

TOTAL EXPENSES INCLUDING INTEREST 8402.8

TOTAL CONTRIBUTION PER DAY 13312

NET PROFIT( before depreciation & taxation) 4909.2
PAY BACK PERIOD 8.54 years