Introduction
For textile manufacturers, knowing the actual cost of every meter produced is critical to protecting margins. But when production data is spread across Excel sheets, registers and departmental records, accurate costing can become slow and difficult to validate.
A leading denim fabric manufacturer in Nagpur, with around 300 employees, faced this challenge across multiple stages—from Warping and Dyeing to Weaving, Finishing, Inspection and Packing. SKIL Global addressed it through a customized ERPNext production costing and traceability solution.
The Business Challenge
The company’s actual production cost depended on several variables, including yarn consumption, shrinkage, crimp %, wastage, process losses and department-wise output.
However, this information was maintained across multiple disconnected sources. When management required an actual cost analysis, the costing team spent 12–16 hours collecting and validating data, while reports could take several days to become available.
Sales pricing was often based on standard development costs rather than actual production costs, increasing the risk of underpricing and margin erosion. The business needed a single, connected source of truth for production and costing.
The SKIL Global Solution
SKIL Global implemented a customized ERPNext production costing and traceability system built around four capabilities:
1. SET-Based Traceability
A unique SET Number linked every transaction from Yarn Issue to Final Packing, enabling end-to-end production traceability.
2. Digitised Shop-Floor Capture
Customized ERPNext interfaces captured production data across Warping, Dyeing, Sizing, Weaving, Finishing, Inspection and Packing.
3. Real-Time Production Visibility
Data was captured as production occurred, providing visibility into consumption, wastage, shrinkage, process losses and output.
4. Automated Actual Costing
ERPNext automatically calculated actual cost per SET, roll and meter, with comparisons against standard development costs.
Measurable Business Impact
The transformation delivered significant improvements:
95% Reduction in Costing Effort
Costing activities were reduced from 12–16 hours to just a few seconds.
100% Production Traceability
Every production stage could be traced from Yarn Issue to Final Packing.
Real-Time Cost Visibility
Management could instantly view the actual cost per meter, roll, and SET.
Improved Pricing Accuracy
Sales teams gained access to actual manufacturing costs before finalizing customer quotations.
Better Margin Protection
Cost deviations could be identified earlier, reducing the risk of underpricing and negative-margin sales.
The Outcome
The implementation transformed production costing from a manual, estimation-based exercise into a real-time, data-driven management process.
Today, the client’s management can instantly understand what each fabric roll actually costs, identify production cost deviations, compare actual costs against standards, and make more informed pricing decisions.
The result is more than faster reporting. It is better control over costs, stronger pricing decisions, and improved protection of manufacturing margins.
Looking to Make Manufacturing Costs Visible in Real Time?
If your production data is still spread across spreadsheets, registers, and disconnected systems, your actual margins may be harder to see than you think.
SKIL Global helps manufacturers connect production, costing, traceability, and decision-making through customized ERPNext solutions.
Turn your production data into a real-time profitability advantage.
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If you’re facing similar challenges in your manufacturing process, write to us! Learn how you can achieve the same significant improvements in productivity and cost savings by implementing Lean Six Sigma tools.
