Just 6 factors decide over 95% of the profits of a spinning mill: productivity of rings/rotors, productivity of employees, yarn realisation, hard waste, raw material prices and prices of yarns. CAPP is an exercise in benchmarking against tough standards for key results that represent the top performance in the industry; an exercise to find out where to act and why. The scopes for physical improvement and for corresponding monetary gains are pinpointed.

The cooperative research associations, starting from the lead given by ATIRA in 1960, have successfully developed norms for all aspects relating to the production factors (i.e. other than prices). SITRA, where TV Ratnam developed in 1959 world’s first productivity measuring system free from effects of the product mix, has done excellent work in this area for spinning mills. However, no norms could be established to judge the TWO important factors dependent on the markets; namely, the cost of fibre mixings and the sales prices realized for yarns. The methodology developed by ATIRA for establishing such norms has made the analysis of profit performance truly ‘comprehensive’.

The CAPP work done in the past was based on questionnaires. It had two major disadvantages: too many items needed to be filled in the 36-page questionnaire and a large time gap occurred before results of analysis reached the participants. Especially for the dynamically changing market factors, the insight for control came a little too late. The on-line system uses data of the preceding 90 days to assess the current situation in the markets, which are known to shift somewhat from quarter to quarter, on an average, for different product groups of yarns. Thus, a participating mill can take meaningful decisions to control raw material costs and/or to improve price realisation in the market.

Just fill in on-line the simplified, ‘easy to fill-in’ INPUT TABLES with readily available data of your mill. Only the minimum necessary information has been asked and the entire set of computations is done automatically on the internet. Standards for the Production Factors are stable and may need adjustment every few years. On the other hand, the Market Factors of fibre mixing cost and yarn sales price are known to change substantially between years, and also within the year. Therefore, these dynamic standards are estimated on-line from a specially developed methodology based on the data received on-line from participating mills. Using these standards, given specifically for each mill to correspond to its product mix, the mill management can confidently assess their mill’s market performance and work towards improving it.

Companies listed on the stock exchanges need to submit their financial performance once in a quarter of the year i.e. once in 3 months. The financial year in India is from 1st April to 31st March for most companies. The report on their performance is to be made available within a month of completion of the quarter i.e. by 31st July, 30th October, 31st January and 30th April. In view of this, the nearly week long periods during which our on-line CAPP accepts mill data are:

• For the 1st Quarter: 15th July to 3rd August
• For the 2nd Quarter: 15th October to 3rd November
• For the 3rd Quarter: 15th January to 3rd February
• For the 4th Quarter: 15th April to 3rd May

If data pertaining to any other quarter than the preceding quarter is is submitted, the analysis of Production Factors will be valid for taking corrective actions, but the analysis of Market Factors would not be meaningful.

Therefore, every participating mill should ensure that only the data of previous quarter is entered on-line during each of the FOUR periods shown above.
Please note that mill data CAN NOT be submitted at any other time during the year.