COST REDUCTION IN SPINNING MILLS – A SITRA STUDY REPORT

1. Introduction
Controlling the cost of production at optimum level is one of the essential
requirements for the spinning mills to compete successfully in the market. Hence,
mills are expected to initiate suitable measures such as profitable product-mix, higher
productivity, modernisation of machinery and cost control to improve profitability.
SITRA has been offering consultancy services to mills to reduce input costs without
any major investment. After a thorough study, the findings highlighting the expected
savings in various areas such as waste reduction, improvement in labour and machine
productivity and reduction in packing materials cost are submitted to the mills.
Five years ago, SITRA brought out a Focus (Vol.20, No.3, September 2002)
on case study of a spinning mill, in which suggestions were offered to reduce the
input cost. The present Focus covers the case study of another spinning mill, in which
measures for cost reduction have been offered.
2. Profile of the mill
It is a 20 years old unit with an installed capacity of 36000 spindles and 1380
rotors. The mill is equipped with hi-tech machinery in all the departments. It has
been producing 100% viscose, 100% polyester and polyester/ viscose blended yarns.
3. Areas identified for cost reduction
The summary of the mill’s performance and suggestions for cost reduction are
given in the following pages.


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