Cutting Value: Cutting value is defined as the percentage of usable area i.e.: The area of leather which is free of any defect.
Cutting value, CV= 100- percentage of defective area.
* Cutting value is calculated as a percentage.

* On a first grade, An allowance of upto 3 percentage defective area; Waste is added.
* If these waste is not allow for some defects, very few leather would even be classed as first grade.
*  The grade after first grade, all vary by 5 percent.

Various grading and waste allowance:

Grade            Cutting value (percentage)                Wastage         
1st                               100-97                                          3                   
2nd                               96-92                                           8                  
3rd                                91-87                                         13                 
4th                                 86-82                                        18                
5th                                 81-77                                        23                


Leather Grading: Leather Grading is the process of sorting out of 
finished leather into different groups as per the quality and cutting value.
Purpose of leather grading:
  • Financial
  • Quality
Financial: By financial it's establishing whether or not the corporate has bought the consignment of leather at correct value.
It can also establish true profit and loss figures for each.
Quality: This is the grading of leather into numerous grades to permit the cutting section to issue certain sure grade of leather for certain enough styles.

Financial influence of leather grading: We have already discussed that Leather grading can influence the profit or loss of a clicking room of factory. Now see, How it may influence -
A complete delivery of locally finished leather has been delivered to the factory,
Quantity= 500 sft
Price= Tk.300 per sft 
Here, 
1st Grade= 20 sft
2nd Grade= 110 sft
3rd grade= 95 sft
4th grade= 165 sft
5th grade= 110 sft
*In Leather grading price fixing, it is normal practice to allow 5 percent between grade.

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