COSTING FABRIC YARD GOODS

1
COSTING FABRIC YARD GOODS

• ESTABLISHING A STANDARD FOR USAGE AND ACCOUNTING
  FOR WASTE

2
FACTORS AFFECTING FABRIC COST

• SIZES PER MARKER
• FABRIC PROPERTIES
• INTERNAL QUALITY REQUIREMENTS

• SIZE SCALE
• CUT SIZE
• BUNDLE SIZE
• PATTERN LAYING RULES
• CUTTING PRACTICES
• SUPPLIER MARKETING PRACTICES

3
SIZE SCALE

• NOT ALL SIZES REQUIRE THE SAME AMOUNTS OF FABRIC
  COST THE SIZES TO BE MANUFACTURED.
• MUST YOU CUT SIZES SEPARATELY?
• CAN YOU GROUP SIZES?
• IS THERE MORE THAN ONE SIZE SCALE? 2-4-4-2 OR
  1-3-5-3 OR 1-3-4-3-1

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CUT OR LOT SIZE

• NOT ALL CUTS ARE CREATED EQUAL.
• LARGER CUTS GIVE MORE FLEXIBILITY IN HOW THEY ARE
  EXECUTED.

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BUNDLE SIZE

• NUMBER OF PIECES IN A BUNDLE CAN AFFECT THE
  YARDAGE OF A GARMENT

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DISCUSSION QUESTION

• HOW CAN A LARGER BUNDLE SIZE MEAN MORE YARDAGE?
  WHAT IS THE CORRECT WAY?

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PATTERN LAYING RULES

• CAN PIECES BE LAID ON THE BIAS? CAN THEY BE
  ANGLED?
• ARE BUFFERS NEEDED BETWEEN PIECES?
• CAN PIECES BE OVERLAPPED?
• CAN CORNERS BE SNIPPED AWAY?
• CAN THEY BE TURNED SIDEWAYS?

8
CUTTING PRACTICES

• WHEN IS FABRIC UNWRAPPED?
• CAN ENDS BE USED?
• HOW MUCH OVERSPREAD IS ALLOWED?
• IS EXTRA LENGTH INCLUDED BETWEEN MARKERS?

9
SUPPLIER MARKETING PRACTICES

• ARE THERE MINIMUM PURCHASE REQUIREMENTS?
• ARE THERE DIFFERENT PRICES FOR COLORS?
• IS THERE A LIKELIHOOD OF SUBSTITUTION OF GOODS?
• IS SECONDS QUALITY A POSSIBILITY OR A PROBLEM?

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DISCUSSION QUESTION?

• WHAT ARE SOME OF THE COSTING ISSUES SUGGESTED BY
  THESE MARKETING PRACTICES?

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SIZES PER MARKER

• MIXING SIZES CAN SOMETIMES LEAD TO LOWER YARDAGE.
• SINGLE SIZE MARKERS ARE NOT ALL BAD
• BODY TUBES MEAN ONE SIZE.
• SINGLE BUNDLES ARE A GOOD PLACE FOR ENDS.
• BUT, THEY MAY NOT LAY WELL INDIVIDUALLY.

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FABRIC PROPERTIES

• IS THE FABRIC PATTERNED? PLAID? STRIPED?
• IS THE FABRIC DIRECTIONAL?
• IS THE FABRIC ELASTIC? IN BOTH DIRECTIONS?
• WHAT IS THE CUTTABLE WIDTH?

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QUALITY REQUIREMENTS?

• ARE ROLLS UNWRAPPED BEFORE USE?
• ARE GOODS SWATCHED?
• ARE DEFECTS REMOVED DURING SPREADING?
• ARE RECUTS ALLOWED?

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THE BASIC RULE FOR COSTING MATERIALS AND SUPPLIES

• UNITS NEEDED x (1WASTE FACTOR) x COST PER UNIT
  UNIT COST

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UNITS NEEDED...

• MUST INCLUDE MINIMUM REQUIRED
• ONE LABEL
• MARKER YARDS
• 8 BUTTONS
• MIGHT NEED TO BE A MIXTURE
• SIZE SCALE
• COLOR MIX
• CUT SIZE

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WASTE FACTOR

• AMOUNTS ABOVE MINIMUM USAGE
• RECUT OR RESEW AMOUNTS
• DEFECTIVE MATERIAL
• OVERSPREAD
• BUILT-IN EXCESSES
• SAMPLE YARDAGE
• QUALITY TESTS
• SURPLUS

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COST PER UNIT

• COLOR MAY INFLUENCE COST
• INCLUDE FREIGHT, STORAGE, ETC.
• MAKE SURE THE PRICE IS GOOD FOR THE PERIOD COSTED.

18
MATERIAL WORKSHEETPART ONE
19
MATERIAL WORKSHEETPART TWO
20
MATERAIL COSTING EXERCISE

• YOU SHOULD COMPLETE THIS EXERCISE BEFORE
  CONTINUING!

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BODY YARDS INSTRUCTIONSONE

• MATERIAL PURCHASED IN YARDS (UNUSUAL), 60 YARDS
  PER ROLL. IT IS TUBULAR.
• 25 SINGLE BUNDLE MARKERS LAID END-TO-END. EACH IS
  .944 YARDS LONG.
• THE SPREAD WILL BE 48 PLYS (TUBES) HIGH.

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QUESTIONS

• HOW MANY GARMENTS WILL BE CUT? 25 X 48 1,200
• HOW LONG IS THE SPREAD? .944 X
  25 23.6 YARDS
• WHAT IS THE MINIMUM YARDS REQUIRED? 23.6 X 48
  1,132.80.
• HOW MANY ROLLS WILL BE NEEDED? 1,132.80 / 60
  18.9 19.

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OVERSPREAD LOSS

• THE CUTTING ROOM NORMALLY OVERSPREADS EACH END OF
  THE SPREAD BY ¾.
• WHAT IS THE YARDS REQUIRED?
• (.75.75) X 4872. 72/362.0 YDS.
• WHAT PERCENT OF MARKER YARDS? (2.0 / 1,132.80)
  0.18.

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PER ROLL WASTE

• EACH ROLL MUST HAVE THE END SQUARED AND
  OVERLAPPED TO BEGIN.
• EACH ROLL HAS A REMNANT END. THE AVERAGE LOSS IS
  27 PER ROLL.
• THIS OCCURS FOR EACH ROLL IN THE SPREAD.

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PER ROLL QUESTIONS

• WHAT YARDAGE IS REQUIRED TO BEGIN AND END ALL
  ROLLS IN THE SPREAD?
• (27/36).75 YDS.
• .75 X 19 ROLLS 14.25 YARDS.
• WHAT PERCENT OF MARKER YARDS?
• 14.25 / 1,132.80 1.26

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SWATCH YARDAGE

• EVERY ROLL HAS A 6 X 6 SWATCH OF FABRIC REMOVED
  FOR SHADING PURPOSES.
• HOW MANY YARDS ARE USED?
• (6/36) .1667 YDS.
• .1667 X 19 3.17 YDS.
• WHAT PERCENT OF MARKER YARDS?
• 3.17 / 1,132.8 0.28

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FABRIC DEFECTS

• 90 OF THE ROLLS HAVE ONE DEFECT, 1.1 YDS. LONG,
  THAT MUST BE REMOVED.
• WHAT YARDAGE IS REQUIRED?
• (19 X 0.9) 17. 17 X 1.1 18.7 YDS.
• WHAT PERCENT OF MARKER YARDS?
• 18.7 / 1,132.80 1.65

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MARKER GAP

• 25 MARKERS ARE PLACED END-TO-END, BUT A ¾ GAP IS
  BUILT-IN BETWEEN EACH.
• WHAT YARDAGE IS REQUIRED PER GAP? (.75/36)
  0.021 YDS.
• HOW MANY .75 GAPS ARE THERE?
• 24 X 48 PLYS 1,152.
• HOW MANY YARDS ARE LOST?
• 1,152 X .021 24 YDS.
• WHAT PERCENT OF MARKER YARDS?
• 24 YDS./ 1,132.80 YDS. 2.12

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SUMMARY OF STYLE SPECIFIC LOSSES

• OVERSPREAD 0.18
• ROLL ENDS 1.26
• SWATCHES 0.28
• DEFECTS 1.65
• MARKER JOINS 2.12
• TOTAL 5.48

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NON-SPECIFIC ELEMENTS OF FABRIC LOSS

• ITEMS WHERE GOODS ARE PURCHASED, BUT DO NOT GO
  INTO SALEABLE GARMENTS.
• HISTORY IS USED TO ESTIMATE THESE LOSSES.
• THE LIST IS NOT EXHAUSTIVE.

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EXAMPLES OF NON-SPECIFIC LOSS

• OBSOLETE - GIVEAWAY. 2.00
• SAMPLES 0.25
• RECUT PERCENTAGE. 0.50
• SECONDS AFFECT. 0.20
• TOTAL NON-SPECIFIC 2.95

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CONVERTING MINIMUM YARDS TO COST YARDS

• SPECIFIC LOSSES 5.48
• NON SPECIFIC LOSS 2.95
• TOTAL LOSSES 8.43
• MINIMUM YARDS 0.944
• COST YARDS
• 0.944 X (1.0843) 1.0236 YDS.

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FABRIC COST PER YARD

• IT IS BEST TO COST COLORS SEPARATELY.
• IF THIS CANNOT BE DONE, WEIGHT THE COST BY USING
  THE PRICE AND THE EXPECTED SALES PERCENT OF EACH
  COLOR.

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WEIGHTED COST PER YARD EXERCISE

• FOLLOWING ARE THE PRICES AND SIZE PERCENTS FOR
  ALL COLORS.
• COLOR 1 1.10 50
• COLOR 2 1.25 10
• COLOR 3 1.25 15
• COLOR 4 1.15 15
• COLOR 5 1.10 10
• WHAT IS THE WEIGTHED COST PER YARD?

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WEIGHTED COST PER YARD EXERCISE