A FEASIBILITY STUDY TO BUY METAL PLATE PRESS MACHINE IN PT. X

Abstract

While automotive industry in SEA market are growing rapidly, manufacturer hardly keeps up with the demand. Therefore, capacity upgrade are necessary to satisfy the market. While current capacity has a limit, new equipment sourcing is inevitable. To source a new machine/ equipment requires a considerable amount of capital expense. Therefore, to decide whenever the project is feasible or not, a feasibility study need to be conducted. Feasibility study is one of the most used tools for decision making, not only to secure and being one of the requirement analysis in financing project, but it also necessary to analyze the benefit and disadvantage of the investment project. There are three different focus of study within this research, there are market, technical, and financial aspect. In the market feasibility study, historical demand and business trends analysis will determine future state of market. Technical aspect will focus on material availability and machine compatibility to the available space in facility, product specification, and production capacity. While financial aspect will focus on the cash flow and break-even analysis to further determine the internal rate of return of the investment. In the end, this research has successfully shown the feasibility of all three aspect (market, technical, and financial) and lead to a prospective break-even point of two years period with 28% rate of return. Thus, concludes feasibilities of the project.