USING THE COTTON MANAGEMENT SYSTEM™ TO MINIMIZE RAW MATERIAL COSTS AND MAXIMIZE QUALITY

• Michael Watson – Fiber Competition Division

SPINNING JENNY

INDUSTRIAL REVOLUTION

EARLY RING SPINNING …1880’S

MODERN RING SPINNING

OPEN END SPINNING

VORTEX SPINNING

400 METERS/MINUTE PER POSITION

MANUAL CLASSING

Costs of Making Yarn

62% 12%

11%

10% Fiber

Power

Capital

Waste

Other Mat.

Labor

Relative Costs of Manufacturing Ring-Spun Yarn in China

• Fiber represents more than 60% of the cost of making yarn

Source: International Textiles Manufacturers’ Federation (ITMF) International Cost of Production Comparison

Early USDA Interest in Instrument Classification

• Work Started in 1930’s – Colorimeter – Color Grades

MILL FIBER QUALITY MEASURMENTS

HVI DATA CAN BE OVERWHELMING

PBI TAG

USDA Cotton National Database

BRAZIL AND CHINA PBI TAGS

HVI DATA CAN BE STILL BE OVERWHELMING

® EFS System

QRNet32

Mills Merchants

Co-ops

MILLNet MILLNet32

TM

Engineered Fiber Selection® System Software

USCROP™

http://www.cottoninc.com/EFSSoftwarePrograms/

A Short History of EFS®

• Late 1970’s – Concept Developed • 1981 – First Licensee • 1988 – First International Licensee • 1991 – 100% HVI® Classing of U.S. Crop • Since 1994 – 8+ Million Bales Managed per

Year

29

EFS® MILLNet Users Worldwide

• China – 9 • Hong Kong – 2 • Korea – 3 • Thailand – 5 • Philippines – 1 • Vietnam - 1

• U.S. – 23 • Canada – 1 • Mexico – 11 • Colombia – 2 • Peru - 1

• Morocco – 1

Mexico

Korea

Thailand

Canada

Philippines Hong Kong

Korea

Thailand

China

Morocco Colombia

•For both mix and inventory control •Usually determined by growth area, staple length, end product, spinning system and/or crop year

•For both mix and HVI control •Usually determined by spinning system, HVI distributions, end product, quality concerns, and/or blending efficiency •Ranked in order of importance

Groups

Categories

Group | Category

Bale Tags

MILLNet Warehouse

MILLNet Laydown Template

MIC LEN STR Avg. 4.0 1.12 28.0 %CV 8.0 3.5 4.5

Overall Mix:

MIC LEN STR 4.0 1.12 28.0 8.0 3.5 4.5

MIC LEN STR 4.0 1.12 28.0 8.0 3.5 4.5

Overall Mix:

MIC LEN STR 4.0 1.12 28.0 8.0 3.5 4.5

MIC LEN STR 4.0 1.12 28.0 8.0 3.5 4.5

EFS® Vs. Standard Mixes

Standard Bales Random

EFS® Mini-mixes

MIC LEN STR 4.0 1.12 28.0 8.0 3.5 4.5

MIC LEN STR Avg. 4.0 1.12 28.0 %CV 8.0 3.5 4.5

MIX 1 MIX 2

MIX 3 MIX 4

MIX 5 MIX 6

EFS® Vs. Standard Mixes

Standard

EFS®

5

10

15

20

25

17

13

Raw Material Savings Using EFS System Software®

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Yar

n S

tren

gth

G/T

Before EFS System® After EFS System®

92% Weaving Efficacy

Average Yarn Strength Before EFS System®

Average Yarn Strength After EFS System®

Savings in $$

Laydowns Per Day

EFS® Analytical Tools Bales: 878Mean: 4.108Std: 0.294CV%: 7.163Hi Out: 0Lo Out: 0

16

32

48

64

80

96

112

128

3.23 3.52 3.81 4.11 4.40 4.70 4.99

Micronaire Groups ALL

40

45

50

55

60

65

70

75

80

85

90

5 6 7 8 9 10 11 12 13 14 15 16 174 18

WHITE

LT SP

SPOTTED

TINGED

Y.S.

BG

GO

SGO

LM

SLM

MSM

GM

81

71

61

51

41

31

2111

1

2

3

4

Le

<

<

>

A

M

US Up a d Co o C a t o 8 8 ba es

Avg Rd: 79.71, Avg +b: 8.89 (21-1), 100.00% of 878 possible

A FINAL WORD: OUR “REAL” COMPETITION

Cotton’s Competition—Synthetic Fibers

USING THE COTTON MANAGEMENT SYSTEM™ TO MINIMIZE RAW MATERIAL COSTS AND MAXIMIZE QUALITYSlide Number 2Slide Number 3SPINNING JENNYINDUSTRIAL REVOLUTIONEARLY RING SPINNING …1880’SSlide Number 7MODERN RING SPINNINGOPEN END SPINNINGVORTEX SPINNING 400 METERS/MINUTE PER POSITION��MANUAL CLASSINGSlide Number 13Costs of Making YarnSlide Number 15Early USDA Interest in Instrument ClassificationSlide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21MILL FIBER QUALITY MEASURMENTSHVI DATA CAN BE OVERWHELMINGPBI TAGUSDA Cotton National DatabaseBRAZIL AND CHINA PBI TAGSHVI DATA CAN BE STILL BE OVERWHELMINGSlide Number 28A Short History of EFS®Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38Slide Number 39Slide Number 40Slide Number 41EFS® Analytical ToolsA FINAL WORD:�OUR “REAL” COMPETITIONSlide Number 44