TECHNICAL AND FINANCIAL ASPECT ANALYSIS IN INVESTMENT OF NEW OVEN HEATING MACHINE FOR BABY FASHION DOLL HEAD PART AT PT XYZ

Abstract

PT XYZ Indonesia is a manufacturing company specializing in children's toys, including fashion toys and HW Cars. One of the key production processes in fashion toys is heating the head part using oven head machine. However, investigations in May 2024 revealed that temperature inconsistencies led to deformations in <10 head parts and 20 process difficulties in assembly during two work shifts. These issues arise due to fluctuating machine inputs that affect heating uniformity. The company has attempted multiple repairs, but overheating persists. Additionally, the current machine cannot be upgraded with essential features like an analog thermostat for better temperature control. Its internal structure, filled with electrical components and enclosed in a wooden cover, prevents modification. Even if modifications were possible, the cost $1,250 per unit is nearly equivalent to purchasing a new machine $1,000 per unit from an alternative vendor. Given these limitations, investment in a new machine is a more cost-effective and sustainable solution than frequent repairs. Therefore, this report aims to plan the investment of new head oven machine, the positive and negative results of this objective will determine the feasibility of investing in new toy spare parts head oven machine in technical and financial aspects