Feasibility Study of Machining Center on Small and Enterprises (SMEs) in Yogyakarta

Abstract

Machining center is used to handle the manufacturing of material feeding using computer numerical control and a lot of various types of equipment and operation. It is needed to improve the productivity rate and has been developed in several countries. But, in Indonesia, there hasn’t been much development of this technology. This paper present the feasibility study of Machining Center on Small and Enterprises (SMEs) in Yogyakarta. The study begins with determining the technology map of SMEs in Yogyakarta, built the simulation in ProModel, and calculated the economic feasibility. The concept of Machining Center consists of six processes and is integrated with computer. The result of simulation indicate that the installation of machining center could increase the production capacity that are 51% for A type, 88% for B type, and 91% C type. Based on the economic feasibility analysis, the installation of machining center is feasible to implement with PBP for 4.51 years, NPV of Rp 259.561.824, and an IRR of 13%.