Engineering Economics Evaluation for Manufacturing Competitiveness : A case study.

Abstract

Cassava is one of the valuable commodities in Indonesia that can be used as various types of food. One of the foods made from cassava is Tapai which is the result of boiling and fermentation of cassava and has a high carbohydrate content. Tapai's business Mr. Legimin is a business that produces Tapai and sells it in plastic packaging. This business has been producing tapai since 20 years ago and has never conducted an economic analysis to prepare itself to enter the development of a rapidly growing industry. The research method used in this study consists of depreciation calculations, production costs consisting of fixed costs and variable costs, production costs, breakeven points and investment feasibility analysis using the Net Present Value (NPV) method, the benefit cost ratio (Net B) / Ratio C), Internal Rate of Return (IRR) and Payback Period (PBP). Based on an economic analysis with a project life of five years, it was found that the total production cost was Rp38,533,566.7 / month with production costs reaching Rp3,952.16 / kg, breakeven point 2,101 kg / month, NPV Rp2,355,523,695, B / C Net 2.41, IRR> MARR and the payback period is two months.