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%.

Key words – machining center, simulation, ProModel, economic, feasibility study, SMEs.
Andi Sudiarso
Department of Industrial Engineering
Universitas Gadjah Mada, Sleman, DIY Indonesia
ansoed@yahoo.co.uk

Wildanul Isnaini
Department of Industrial Engineering
Universitas Gadjah Mada, Sleman, DIY Indonesia
wildanulisnaini@mail.ugm.ac.id
Download: Feasibility Study of Machining Center on Small and Enterprises (SMEs) in Yogyakarta

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