REPLACEMENT ANALYSIS FOR EXISTING CUTTING MACHINE INTO AUTOMATIC CUTTING MACHINE AT PT. ZX

Abstract

A challenge from hundreds possible problem that is often faced by product manufactures is to have a continuous cost reduction for company or increasing the productivity. Not only to the competiveness, has implementation of technology lead to the cost saving on the production. PT. ZX found high operational cost in cutting top department triggers the analysis to be conducted. With ten operators assigned in the cutting top department, the high labor cost cannot be denied. It is the fact that starting from last year, ‘PP Nomor 78 Tahun 2015’ is agreed by the RI’s President, which each year the UMP increases 10% from the UMP the year before. Not only the high labor cost, high wastage cost also produced by the current system. Two available challengers for the exiting machines are chosen. AC335 as first challenger and CutterZ7 as the second challenger are proven to have accurate CAD system to process the mass cutting, which reduce the wastage cost. In addition, the need of operator is expected decreasing. The replacement analysis based on the lifecycle costs is conducted. By following the decision map of replacement analysis, the first technique is to compare the marginal cost of defender with the challenger minimum economic life. The result of the analysis yields that the first challenger has minimum economic life with Rp622.007.411 at Year 9.