FEASIBILITY ANALYSIS ON CHANGING MANUAL MATERIAL HANDLING TO SEMI-AUTOMATIC PROCESS BY MACHINE INVESTMENT IN PT. X INDONESIA

Abstract

Manual Material Handling (MMH) is an activity that involves tasks such as lifting, pushing, pulling, carrying, moving, and lowering objects. The activity involving MMH is commonly associated with heavy lifting. In PT. X Indonesia warehouse division, product preparation activity is currently done in MMH process that put workers and company at disadvantage. Based on observation and Nordic questionnaire, workers felt pain towards several body parts because of this activity and company is facing a high labor cost due to unfinished product preparation during working hours because of the slow manual process. Because of that, there is a need of improvement of helping tool investment for the current process. The helping tool will change the current manual process to semi-automatic and also will help to improve ergonomic conditions and lower labor cost because faster process. In the analysis, an ergonomic analysis using RULA, REBA, and NIOSH is done to see the risk of current process and feasibility study using engineering economics of NPV (Net Present Value), IRR (Internal Rate of Return), and Payback Period is conducted for the idea of change. Based on the analysis, the RULA, REBA, and NIOSH show a risk of musculoskeletal disorder for the workers because of high risk score. Therefore, from the ergonomic analysis, the improvement of helping tool is needed, but the feasibility of investment has to be calculated. From the analysis using NPV, IRR, and Payback Period, the investment of helping tools is deemed as feasible.