Inter-mill study on costs, operational performance and yarn quality (CPQ)
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Participant mills can click here to view database supported queries and to download the report
SITRA announces the launching of 36th inter-mill study on Costs, operational performance and yarn quality, popularly called as CPQ study. Since starting of this study in year the 1997, so far 35 studies have been completed. In each of these studies more than 100 mills had participated from various parts of our country. The study covers the data for the quarterly period, preferably for October – December period. The study report covers vast information on mill-wise as well as count-wise data on commercial, costs, and operational parameters and yarn quality. A systematic analysis of the data being provided in this 200 page report will be helpful for the participant mills to identify the areas to be attended towards improving their performance.
Parameters being covered in the CPQ study reports
a. Commercial parameters (count-wise)
– Yarn selling price (per kg) (YSP)
– Clean raw material cost (per kg of yarn) (RMC)
– Net output value (per kg of yarn & Rs/spl./shift) (NOV)
– Techno-commercial index (TCI)
b. Cost parameters (mill-wise)
– Sales turnover (YSV)
– Raw material cost (RMC)
– Salaries & wages cost (SWC)
– Power cost (PC)
– Contribution (i.e. YSV – [RMC + SWC + PC])
c. Operational parameters (mill-wise/ count-wise)
– Labour and machine productivity (up to ring frames)
– Production particulars of ring frames, automatic cone winders and TFO twisters
– Power consumption pattern and cost per unit
– Captive power generation particulars
– Yarn realization, wastes and invisible loss
– Raw material quality
– Yarn quality
– Product diversification
Contribution
The mills that participate in the CPQ studies are being ranked based on the contribution (per spindle per year) that was earned by them in the study period (quarterly period). Contribution is nothing but the difference between the sales turnover and the sum of three major input costs (raw material cost, salaries & wages cost and power cost) which ultimately decides the profitability (contribution minus overheads and stores cost = operating profit).
By participating in the CPQ studies, a mill can assess its performance every year in comparison with its competitors’ performance and initiate the necessary measures to improve the performance in the following aspects.
For viewing our earlier sample CPQ study report. please click here
