REPLACEMENT ANALYSIS OF COMPUTERIZED EMBROIDERY MACHINE IN PT SIP EMBROIDERY

Abstract

Business development is not separated from the rapid development of technology. This applies also to the embroidery business in Tasikmalaya. PT SIP embroidery is an embroidery company established in 1996. With the development of technology, the company used computerized embroidery machine since 2007. The first computerized embroidery machine owned by this company is 10 years old. At this moment, the company faces several problems, including the maintenance cost is high enough and does not achieve production targets. To review the old machine, used Overall Equipment Effectiveness (OEE) calculation. The results of this calculation show that the OEE value of this machine is quite small which is 48%. Under this circumstance, a replacement analysis using the Equivalent Uniform Annual Cost (EUAC) method is used. In its calculations, it was concluded that the old machine must be replaced in 2018. After that breakeven analysis is done to see how long the investment cost will return. Breakeven analysis results is 350,993,590 stitches. And conducted sensitivity analysis to see what factors are the most sensitive to investment. NPW from sensitivity analysis is positive which mean the replacement is still considered in 2018.