How to Calculate Dyeing Cost in Textile Dyeing Factory Easy Way with Example

Introduction

This article is going to talk about how to calculate dyeing cost in Textile Wet Processing Factory simple way. There are some factors that are involved when calculating dyeing cost in Textile Wet Processing Factory.

Types of chemicals and dyes
Types of fabric used and shade required.
Types of dyeing machines and methods used.
Lab expenditure incurred during shade development
Effluent treatment cost.

In the following examples, you will find an initiative to estimate the cost of the pre-treatment and dyeing process. The data provided here are approximate and are being used only as a guide. This article is shown calculate dyeing cost for knitted fabric and woven fabric.

Exercise: Calculate Dyeing Cost

Exercise 1: A textile dyeing factory received an order from a garment manufacturer to dye a knitted fabric of 1000 kg. This company can dyeing 300 kg of fabric on a daily basis. The materials and prices used in the process are listed below in the table 1. If the company works one shift per day, calculate the dyeing cost per kilogram with a 20% profit. The total overhead for a month is Rs. 2,50,000 which includes salaries for other employees, electricity bills, plant rent, and other costs.

S/N	Items used	Quantity used	Price in Rs.
1.	Reactive dye	3 kg	300 per kg
2.	Reactive dye B	6 kg	250 per kg
3.	Chemical XYZ	8 kg	80 per kg
4.	Chemical ABC	10 kg	150 per kg
5.	Machine operators used	8	400 per shift
6.	Machine helpers used	4	200 per shift.

Table 1: Chemical used and their prices

Solution

Step 1: Total shift calculation

The total production need to be done= 1000 kg
Daily production of the company= 300 kg per shift
The total shifts required= Order quantity ÷ daily production= 1000 ÷ 300= 3.33 shifts

Step 2: Labour cost

The number of labours used are, 8 machine operators with the wages of Rs. 400 per shift and 4 machine helper with the wage of Rs. 200 per shift.

Labour cost of machine operator = number of labour× total working shifts × wage of per shift= 8× 3.33 × 400= 10,656
Labour cost of machine helper= 4× 3.33 × 200= 2,664
Total labour cost= machine operator cost+ helper cost= 10,656 + 2,664= Rs. 13,320

Step: 3: calculation of chemical cost

Reactive dye= 3× 300= 900
Reactive dye B= 6× 250= 1,500
Chemical XYZ= 8× 80= 640
Chemical ABC= 10× 150= 1500
Total chemical cost= (900+1500+640+1500)= Rs. 4,540

Step 4: Calculate overhead cost

Company works for this order only 3.33 shifts. Hence, the overhead costs for 3.33 shifts are,

Total overhead cost= Rs. 2,50,000
Overhead per day ( 1 shift)= 2,50,000 ÷ 30= Rs.8,333.33
Therefore, overhead cost for this order= 8,333.33 × 3.33= Rs. 27,749.99

Step 5: Calculate dyeing cost per kg

Total cost= labour cost + chemical cost + overheads= 13,320+ 4,540+ 27,749.99= Rs. 45, 609.99
Total cost with 20% profit= 45,609.99 + ( 20% profit of 45,609.99)= Rs. 54,731.99
Total dyeing cost/ kg= 54,731.99 ÷ 1000= Rs. 54.73

N.B.: Based on their previous experience, companies/merchanters can estimate the cost of dyeing. The exact cost of dyeing must be calculated after the dyeing process has been completed, based on the chemicals and dyes consumed. For a particular order, the above example shows the total cost based on the consumption of all chemicals.

Example 2: An order from a garment manufacturer for the dyeing of 1,50,000 metres of woven fabric was received by a textile dyeing factory . The average production per shift in the company is 30,000 metres. The materials and prices used in the process are listed below table 2. If the company works one shift per day, calculate the dyeing cost per metre with 15% profit. A monthly overhead charge of Rs. 75,000 is incurred for steam, Rs. 30,000 for power, Rs. 7,000 for transport, Rs. 20,000 for rent, and Rs. 95,000 for other expenses.(Assume company works 26 days per month).

S/N	Items used	Quantity used	Price in Rs.
1.	Dye A	40 kg	400 per kg
2.	Chemical 1	70 kg	200 per kg
3.	Chemical 2	20 kg	170 per kg
4.	Chemical 3	60 kg	150 per kg
5.	Machine operators used	15	400 per shift
6.	Machine helpers used	7	200 per shift.

Table 2: List of Chemical used and their prices

Solution

Step 1: Total shift calculation

The total production need to be done= 1,50,000 metres
Daily production of the company= 30,000 per shift
The total shifts required= Order quantity ÷ daily production= 1,50,000÷ 30,000= 5 shifts

Step 2: Labour cost

The number of labours used are, 15 machine operators with the wages of Rs. 400 per shift and 7 machine helper with the wage of Rs. 200 per shift.

Labour cost of machine operator = number of labour× total working shifts × wage of per shift= 15× 5× 400= Rs. 30,000
Labour cost of machine helper= 7× 5 × 200= Rs. 7,000
Total labour cost= machine operator cost+ helper cost= 30,000+7,000= Rs. 37,000

Step: 3: Calculation of chemical cost.

Dye A= 40× 400= 16,000
Chemical 1 = 70× 200= 14,000
Chemical 2 = 20× 170= 3,400
Chemical 3 = 60 × 150= 9,000
Total chemical cost= (16,000+14,000+3,400+9,000)= Rs. 42,400

Step 4: Calculation of overhead cost

Company works for this order only 5 shifts. Hence, the overhead costs for 5 shifts are,

Total overhead cost= (75,000+30,000+7,000+20,000+95,000)= Rs. 2,27,000 per 26 days
Overhead per day ( 1 shift)= 2,27,000÷ 26= Rs. 8,730.77
Therefore, overhead cost for this order= 8,730.77 × 5= Rs. 43,653.85

Step 5: Calculate dyeing cost

Total cost= labour cost + chemical cost + overheads= 37,000+ 42,400+ 43,653.85= Rs. 1,23,053.85
Total cost with 10% profit= 1,23,053.85 + ( 15% profit of 1,23,053.85)= Rs. 1,41,511.93
Total dyeing cost/ kg= 1,41,511.93÷ 1,50,000= Rs. 0.94 per metre of fabric.

Conclusion

This is the calculation process for dyeing cost. It is used by textile dyeing factories around the world. If you have any questions about dyeing cost calculation, please let me know below in the comments.

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How to Calculate Dyeing Cost in Textile Dyeing Factory Easy Way with Example

Introduction

Exercise: Calculate Dyeing Cost

Conclusion

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